PVH Corp. Fundamental Analysis
PVH Corp. (PVH) shows weak financial fundamentals with a PE ratio of 22.28, profit margin of 1.76%, and ROE of 3.25%. The company generates $9.0B in annual revenue with moderate year-over-year growth of 3.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PVH's fundamental strength across five key dimensions:
Efficiency Score
WeakPVH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPVH trades at attractive valuation levels.
Growth Score
WeakPVH faces weak or negative growth trends.
Financial Health Score
ExcellentPVH maintains a strong and stable balance sheet.
Profitability Score
WeakPVH struggles to sustain strong margins.
Key Financial Metrics
Is PVH Expensive or Cheap?
P/E Ratio
PVH trades at 22.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PVH's PEG of -0.42 indicates potential undervaluation.
Price to Book
The market values PVH Corp. at 0.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.16 times EBITDA. This is generally considered low.
How Well Does PVH Make Money?
Net Profit Margin
For every $100 in sales, PVH Corp. keeps $1.76 as profit after all expenses.
Operating Margin
Core operations generate 6.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.25 in profit for every $100 of shareholder equity.
ROA
PVH Corp. generates $1.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PVH Corp. generates limited operating cash flow of $707.97M, signaling weaker underlying cash strength.
Free Cash Flow
PVH Corp. produces free cash flow of $552.59M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $11.99 in free cash annually.
FCF Yield
PVH converts 15.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How PVH Stacks Against Its Sector Peers
| Metric | PVH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.28 | 23.90 | Neutral |
| ROE | 3.25% | 1176.00% | Weak |
| Net Margin | 1.76% | 2549.00% | Weak |
| Debt/Equity | 0.86 | 0.73 | Neutral |
| Current Ratio | 1.68 | 2.83 | Neutral |
| ROA | 1.39% | -8407.00% (disorted) | Weak |
PVH outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PVH Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
88.89%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
103.35%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
46.80%
Industry Style: Cyclical, Growth, Discretionary
High Growth