Men's & Boys' Furnishgs, Work Clothg, & Allied Garments
PVH Corp. operates as an apparel company in the United States and internationally. The company operates through six segments: Tommy Hilfiger North America, Tommy Hilfiger International, Calvin Klein North America, Calvin Klein International, Heritage Brands Wholesale, and Heritage Brands Retail. It designs, markets, and retails men's, women's, and children's apparel and accessories, include branded dress shirts, neckwear, sportswear, jeans wear, performance apparel, intimate apparel, underwear, swimwear, swim-related products, handbags, accessories, footwear, outerwear, home furnishings, luggage products, sleepwear, loungewear, hats, scarves, gloves, socks, watches and jewelry, eyeglasses and non-ophthalmic sunglasses, fragrance, home bed and bath furnishings, small leather goods, and other products. The company offers its products under its own brands, such as Tommy Hilfiger, Calvin Klein, Van Heusen, IZOD, ARROW, Warner's, Olga, Geoffrey Beene, and True&Co., as well as various other owned, licensed, and private label brands. The company distributes its products at wholesale in department, chain, and specialty stores, as well as through warehouse clubs, mass market, and off-price and independent retailers; and through company-operated full-price, outlet stores, and concession locations, as well as through digital commerce sites. PVH Corp. was founded in 1881 and is based in New York, New York.
Discounted Cash Flow Valuation of Pvh Corp.
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $724.7M | $751.6M | $779.6M | $808.6M | $838.7M | $869.9M | $902.2M | $935.7M | $970.5M | $1.007B | $1.044B | $10.44B |
DCF | $653.6M | $589.5M | $531.7M | $479.5M | $432.5M | $390M | $351.8M | $317.3M | $286.1M | $258.1M | $2.581B | |
Value | $6.871B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 01-2016 | 01-2017 | 02-2018 | 02-2019 | 02-2020 | 01-2021 | 01-2022 | 01-2023 | 02-2024 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 7.1% | 6.7% | 6% | 7.7% | 4.2% | -16% | 10% | 2.2% | 7.2% | 7.2% |
ROA | 7.1% | 7.1% | 5.3% | 7.5% | 4.1% | -8.1% | 8.7% | 4% | 8.3% | 8.3% |
ROE | 13% | 11% | 9.7% | 13% | 7.1% | -24% | 18% | 4% | 13% | 13% |
The average Net Margin over the past 5 years is +2.63%.
The trend of Net Margin over the past 5 years is +0.51%.
The average ROA over the past 5 years is +4.09%.
The trend of ROA over the past 5 years is +0.58%.
The average ROE over the past 5 years is +5.14%.
The trend of ROE over the past 5 years is +0.96%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 01-2016 | 01-2017 | 02-2018 | 02-2019 | 02-2020 | 01-2021 | 01-2022 | 01-2023 | 02-2024 | TTM |
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Debt FCF | 5.23 | 4.54 | 9.02 | 5.99 | 4.08 | 7.63 | 2.97 | -9.57 | 3.79 | 3.79 |
Debt Equity | 0.73 | 0.67 | 0.56 | 0.49 | 0.47 | 0.76 | 0.45 | 0.48 | 0.54 | 0.54 |
MIN | ||||||||||
Graham Stability | - | - | 100% | 100% | 68% | -200% | 100% | 100% | 100% | -200% |
The Debt/FCF trailing twelve month is 3.79.
The trend of Debt/FCF over the past 5 years is -1.62.
Graham’s Stability measure stands at -2.01.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 01-2017 | 02-2019 | 01-2021 | 01-2023 | Trend |
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Revenue | 1.7% | -0.93% | 8.9% | 2.1% | 0.19% |
Net Income | 2.8% | -2.3% | - | 230% | 11% |
Stockholders Equity | 0.91% | -2.6% | 2.7% | 2.1% | -1.2% |
FCF | 0.33% | 8.9% | 15% | - | 5.9% |
The Revenue CAGR over the past 5 years is -0.93%.
The trend of Revenue growth rate over the past 5 years is +0.19%.
The Earnings CAGR over the past 5 years is -2.28%.
The trend of Earnings growth rate over the past 5 years is +11.49%.
The Equity CAGR over the past 5 years is -2.56%.
The trend of Equity growth rate over the past 5 years is -1.2%.
The FCF CAGR over the past 5 years is +8.91%.
The trend of FCF growth rate over the past 5 years is +5.9%.