Pvh Corp. /De/ (NYSE: PVH)

Sector: Consumer Cyclical Industry: Apparel Manufacturing CIK: 0000078239
Market Cap 3.39 Bn
P/B 0.70
P/E 9.96
P/S 0.38
ROIC (Qtr) 0.04
Div Yield % 0.28
Rev 1y % (Qtr) 1.74
Total Debt (Qtr) 4.26 Bn
Debt/Equity (Qtr) 0.87

About

Price action

Investment thesis

Bull case

  • Operating cash flow of 583.70M provides strong 11.25x coverage of stock compensation 51.90M, indicating sustainable incentive practices.
  • Robust free cash flow of 441.90M exceeds capital expenditure of 141.80M by 3.12x, indicating strong organic growth funding capability.
  • Tangible assets of 6.38B provide exceptional 149.67x coverage of deferred revenue 42.60M, showing strong service capability backing.
  • Operating cash flow of 583.70M provides strong 13.70x coverage of deferred revenue 42.60M, indicating service delivery capability.
  • Operating cash flow of 583.70M fully covers other non-current liabilities 360.30M by 1.62x, showing strong long-term stability.

Bear case

  • Operating cash flow of 583.70M barely covers its investment activities of (137.40M), with a coverage ratio of -4.25, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 158.20M against inventory of 1.66B, the 0.10 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 583.70M provides thin coverage of dividend payments of (7.90M) with a -73.89 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 583.70M provides minimal -2.62x coverage of tax expenses of (222.40M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 210.50M show weak coverage of depreciation charges of 276.40M, with a 0.76 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Apparel Manufacturing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RL Ralph Lauren Corp 21.81 Bn 25.53 2.88 2.85 Bn
2 GIL Gildan Activewear Inc. 9.45 Bn 19.89 2.81 1.87 Bn
3 LEVI Levi Strauss & Co 8.22 Bn 13.64 1.29 2.29 Bn
4 VFC V F Corp 7.10 Bn 78.61 0.74 5.79 Bn
5 KTB Kontoor Brands, Inc. 3.40 Bn 15.62 1.20 1.50 Bn
6 PVH Pvh Corp. /De/ 3.39 Bn 9.96 0.38 4.26 Bn
7 COLM Columbia Sportswear Co 3.12 Bn 16.69 0.91 0.48 Bn
8 ZGN Ermenegildo Zegna N.V. 2.55 Bn 43.66 1.13 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.65 1.01
EV to Cash from Ops. EV/CFO 12.73 8.80
EV to Debt EV to Debt 1.75 4.30
EV to EBIT EV/EBIT 35.30 -5.31
EV to EBITDA EV/EBITDA 17.55 -69.89
EV to Free Cash Flow [EV/FCF] EV/FCF 16.82 15.55
EV to Market Cap EV to Market Cap 2.19 1.81
EV to Revenue EV/Rev 0.84 1.14
Price to Book Value [P/B] P/B 0.70 1.78
Price to Earnings [P/E] P/E 9.96 14.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 43.14 -1.16
Dividend Payout Ratio % Div Payout % (Qtr) 2.30 -3.95
Dividend per Basic Share Div per Share (Qtr) 0.15 0.51
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 1.68 20.82
Interest Coverage Int. cover (Qtr) 2.29 26.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 24.29 -10.62
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -71.73 10.71
Dividend Growth (1y) % Div 1y % (Qtr) 1.32 2.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -23.44 -88.95
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -62.43 11.99
EBIT Growth (1y) % EBIT 1y % (Qtr) -77.58 -49.71
EBT Growth (1y) % EBT 1y % (Qtr) -86.01 -181.63
EPS Growth (1y) % EPS 1y % (Qtr) -45.55 -218.58
FCF Growth (1y) % FCF 1y % (Qtr) -39.03 -29.63
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.34 6.94
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.77 1.16
Cash Payout Ratio Cash Payout (Qtr) 0.01 0.15
Cash Ratio Cash Ratio (Qtr) 0.07 0.28
Current Ratio Curr Ratio (Qtr) 1.47 1.99
Debt to Equity Ratio Debt/Equity (Qtr) 0.87 -1.63
Interest Cover Ratio Int Coverage (Qtr) 2.29 26.98
Times Interest Earned Times Interest Earned (Qtr) 2.29 26.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.50 -6.73
EBIT Margin % EBIT Margin % (Qtr) 2.39 -10.67
EBT Margin % EBT Margin % (Qtr) 1.34 -17.44
Gross Margin % Gross Margin % (Qtr) 57.70 49.34
Net Profit Margin % Net Margin % (Qtr) 3.90 -18.93