PVH  Phillips-van Heusen Corporatio...

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Apparel

Market Cap.

9.82B

Vuru Grade

64.70/100

Current Price

$126.81
-0.55 (-0.43%)

Growth Price

$169.84
Undervalued by 33.93%

Stability Price

$67.61
Overvalued by 46.68%

Company Metrics

  • P/E 24.18
  • P/S 1.17
  • P/B 1.94
  • EPS 5.24
  • Cash ROIC 5.90%
  • Cash Ratio 0.47
  • Dividend 0.15 / 0.12%
  • Avg. Vol. 819,897.00
  • Shares 77.44M
  • Market Cap. 9.82B

Company Description

Phillips-Van Heusen Corporation designs and markets branded dress shirts, neckwear, sportswear, footwear, and other related products worldwide. The company's Calvin Klein Licensing segment licenses Calvin Klein Collection, ck Calvin Klein, and Calvin Klein brands for sportswear, jeanswear, underwear, fragrances, eyewear, men's tailored clothing, women's suits and dresses, hosiery, socks, footwear,... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

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Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for PVH to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate PVH's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$126.81 Current Price

$169.84 Growth Price (DCF)

Undervalued by 33.93%


Growth Rate Assumed by Market: 2.44%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$67.61 Stability Price (EPV)

Overvalued by 46.68%


Discount Rate: 15.0%

$126.10 Book Price

Fairly valued


Poor Cash Return on Invested Capital over the past 5 years

PVH has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

PVH has only created $5.90 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20132014201520162017
Free Cash Flow 358.98M 174.72M 533.30M 635.80M 708.20M
divided by
Invested Capital 5.73B 9.43B 9.02B 8.61B 8.77B
Cash ROIC 6.27% 1.85% 5.91% 7.38% 8.07%

Satisfactory Return on Equity over the past 5 years

PVH has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

PVH has generated $10.14 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20132014201520162017
Net Income 433.84M 143.48M 438.90M 572.40M 548.70M
divided by
Stockholders' Equity 3.25B 4.34B 4.36B 4.55B 4.80B
Return on Equity 13.34% 3.31% 10.06% 12.57% 11.42%

Excellent Business Performance over the past 10 years

PVH has been able to maintain profitability in good times and bad. This could mean PVH has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

PVH has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Free Cash Flow 126.29M 150.61M 190.60M 251.23M 320.88M 358.98M 174.72M 533.30M 635.80M 708.20M

Weak Balance Sheet

PVH's financial position is not ideal. The key is to check whether PVH is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Cash 269.91M 328.17M 480.88M 498.72M 233.20M 892.21M 593.16M 479.30M 556.40M 730.10M
Current Assets 836.22M 864.43M 994.88M 1.81B 1.74B 2.44B 3.00B 2.90B 2.81B 2.88B
Total Assets 2.17B 2.20B 2.34B 6.74B 6.75B 7.78B 11.58B 10.93B 10.70B 11.07B
Current Liabilities 360.15M 349.24M 362.88M 908.16M 1.04B 1.16B 1.55B 1.43B 1.53B 1.56B
Total Liabilities 1.22B 1.20B 1.17B 4.29B 4.04B 4.53B 7.24B 6.57B 6.14B 6.26B
Stockholder' Equity 956.28M 998.80M 1.17B 2.44B 2.72B 3.25B 4.34B 4.36B 4.55B 4.80B
Current Ratio 2.32 2.48 2.74 1.99 1.67 2.10 1.93 2.03 1.84 1.84
TL-to-TA 0.56 0.55 0.50 0.64 0.60 0.58 0.63 0.60 0.57 0.57

Consistent Reinvestment of Profits over the past 10 years

PVH has consistently retained profits. This may put PVH in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, PVH can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Retained Earnings 558.54M 642.18M 796.28M 840.07M 1.15B 1.45B 1.57B 2.00B 2.56B 3.10B
Retained Earnings Growth - 14.98% 24.00% 5.50% 36.55% 26.03% 8.93% 27.09% 27.98% 20.96%

Competitive Industry over the past 10 years

PVH is likely operating in an industry with medium to low barriers to entry. This may mean that PVH doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that PVH invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.26 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Net Income 183.32M 91.77M 161.91M 53.81M 317.88M 433.84M 143.48M 438.90M 572.40M 548.70M
divided by
Revenue 2.43B 2.49B 2.40B 4.64B 5.89B 6.04B 8.19B 8.24B 8.02B 8.20B
Net Profit Margin 7.56% 3.68% 6.75% 1.16% 5.40% 7.18% 1.75% 5.33% 7.14% 6.69%

Strong Pricing Power over the past 10 years

PVH has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$56.18 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Gross Profit 1.19B 1.20B 1.18B 2.42B 5.89B 3.25B 4.22B 4.33B 4.16B 4.37B
divided by
Revenue 2.43B 2.49B 2.40B 4.64B 5.89B 6.04B 8.19B 8.24B 8.02B 8.20B
Gross Margin 49.11% 48.18% 49.30% 52.23% 100.00% 53.77% 51.54% 52.50% 51.89% 53.28%

High Capital Intensity over the past 10 years

PVH spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

76.67% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Capital Expenditure 94.75M 88.14M 23.86M 101.00M 169.84M 210.55M 237.14M 255.80M 263.80M 246.60M
divided by
Net Income 183.32M 91.77M 161.91M 53.81M 317.88M 433.84M 143.48M 438.90M 572.40M 548.70M
Capital Expenditure Ratio 51.69% 96.04% 14.73% 187.71% 53.43% 48.53% 165.28% 58.28% 46.09% 44.94%

Very Strong Dividend History over the past 10 years

PVH has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests PVH is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Dividend Paid 8.45M 7.76M 7.81M 10.02M 10.87M 10.99M 12.29M 12.50M 12.50M 12.20M
divided by
Shares Outstanding 57.11M 52.20M 52.51M 67.38M 72.92M 73.88M 82.62M 83.30M 83.10M 80.90M
Dividend Paid Per Share 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15
Price at Year End 19.11 41.10 63.69 70.49 108.22 134.69 127.36 73.15 90.24 100.19
Dividend Yield 0.77% 0.36% 0.23% 0.21% 0.14% 0.11% 0.12% 0.21% 0.17% 0.15%

History of Stock Buybacks over the past 10 years

PVH has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Shares Outstanding 57.11M 52.20M 52.51M 67.38M 72.92M 73.88M 82.62M 83.30M 83.10M 80.90M
Stock Bought Back - 9.40% -0.58% -22.07% -7.60% -1.29% -10.58% -0.82% 0.24% 2.72%
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