WEBULL

Assessing PVH (PVH) Valuation After Cautious Analyst Report On Fundamental Weakness

Simply Wall St · 5d ago

A fresh analyst report on PVH Corp (PVH) has raised concerns, pointing to weak constant currency growth, a low free cash flow margin, and declining returns on capital as signs of ongoing fundamental pressure.

See our latest analysis for PVH.

PVH shares closed at $67.82, and the recent analyst caution comes after a 30 day share price return decline of 13.59% and a 1 year total shareholder return decline of 36.96%, indicating fading momentum despite earlier sector strength.

If PVH’s recent performance has you reassessing your options, this could be a good moment to broaden your search with fast growing stocks with high insider ownership.

With PVH trading at $67.82, alongside an implied discount to both analyst targets and some intrinsic value estimates, the key question is whether the recent share price slide is overdone or if the market is correctly pricing muted future growth.

Most Popular Narrative Narrative: 29.9% Undervalued

Compared to PVH’s last close at $67.82, the most followed narrative pegs fair value meaningfully higher, framing the current price as a discount worth understanding.

Ongoing operational simplification (PVH+ plan), supply chain optimization, and global technology upgrades are targeting substantial SG&A efficiencies and cost savings, projected to contribute to operating margin expansion and improved net income over the medium long term.

Read the complete narrative.

Curious how modest top line assumptions, margin rebuild and a lower future earnings multiple can still justify a higher value than today’s price? The narrative lays out a step by step path for revenue, profitability and share count that underpins its fair value, plus the discount rate used to pull those future numbers back to the present.

Result: Fair Value of $96.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on tariffs not biting harder than the projected $70 million EBIT hit and on Calvin Klein’s operational issues not dragging on margins longer than expected.

Find out about the key risks to this PVH narrative.

Build Your Own PVH Narrative

If you see the numbers differently or prefer to work through the assumptions yourself, you can build a custom view in just a few minutes, starting with Do it your way.

A great starting point for your PVH research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

PVH might be on your radar, but the real edge comes from lining up a few more candidates so you are ready when the next opportunity appears.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.