Over the past three months, PVH Corp (PVH, Financial) has experienced a notable uptick in its stock price, with a 13.31% gain, reflecting a positive trend in investor sentiment. As of the latest data, the company's market capitalization stands at $5.79 billion, with the current stock price at $95.86. This recent performance marks a 6.14% gain over the past week alone. When compared to the GF Value of $94.25, which has risen from the past GF Value of $90.03, PVH Corp is currently deemed to be Fairly Valued, consistent with its valuation three months prior.
Understanding PVH Corp's Business
PVH Corp, a key player in the Manufacturing - Apparel & Accessories industry, is renowned for its high-profile designer brands, Calvin Klein and Tommy Hilfiger. The company has a global presence, marketing its apparel in over 40 countries, and has streamlined its brand portfolio to focus on its core strengths after divesting most of its smaller brands in 2021. With a robust e-commerce platform, approximately 1,500 stores, and a wide distribution network through department stores and wholesale accounts, PVH has established a strong foothold in the fashion industry. The company's origins trace back to 1881, and it is headquartered in New York City.
Assessing PVH Corp's Profitability
PVH Corp's Profitability Rank stands at a solid 7/10, indicating a robust position within the industry. The company's Operating Margin is 7.85%, outperforming 68.59% of 1,041 companies in the same sector. Additionally, PVH's Return on Equity (ROE) is 3.61%, surpassing 46.86% of its peers, while the Return on Assets (ROA) at 1.57% and Return on Invested Capital (ROIC) at 4.25% are better than 47.11% and 57.74% of industry competitors, respectively. The company has also maintained profitability for 9 out of the past 10 years, which is more consistent than 72.55% of 1,053 companies in the industry.
Exploring PVH Corp's Growth Trajectory
Despite its strong profitability, PVH Corp's Growth Rank is relatively low at 2/10. The company's 3-Year Revenue Growth Rate per Share is 0.90%, which is better than 44.39% of 1,007 companies in the industry. The 5-Year Revenue Growth Rate per Share stands at 2.00%, outperforming 55.09% of 953 companies. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 3.35%, which is more optimistic than 35.38% of the industry. The 3-Year EPS without NRI Growth Rate is 12.20%, surpassing 52.12% of the industry, and the EPS Growth Rate (Future 3Y To 5Y Est) is an impressive 44.80%, which is higher than 77.78% of the industry.
Key Shareholders in PVH Corp
Among the notable shareholders of PVH Corp, Richard Pzena (Trades, Portfolio) holds the largest stake with 6,970,695 shares, accounting for 11.54% of the company. Mason Hawkins (Trades, Portfolio) follows with 1,205,586 shares, representing 2% ownership, and Ken Fisher (Trades, Portfolio) holds 173,633 shares, making up 0.29% of the company's shares.
Competitive Landscape
PVH Corp operates in a competitive industry, with close rivals such as Columbia Sportswear Co (COLM, Financial) with a market cap of $4.68 billion, Levi Strauss & Co (LEVI, Financial) at $6.1 billion, and VF Corp (VFC, Financial) leading with a market cap of $6.45 billion. These competitors are closely matched in terms of market capitalization, indicating a highly competitive environment for PVH Corp.
Conclusion: PVH Corp's Market Position and Outlook
In conclusion, PVH Corp's recent stock price rally can be attributed to its strong profitability metrics and optimistic growth projections. The company's strategic focus on its core brands and global market presence positions it well within the apparel industry. While the Growth Rank suggests there is room for improvement, the projected future earnings growth and the confidence of major shareholders suggest a positive outlook for PVH Corp. Investors will continue to watch the company's performance closely, particularly in comparison to its industry peers.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
