PVH Corp. Common Stock (PVH)

FairStock Score: 28/100 — RISKY

Key Financials

Strengths

• Generates $506 million in annual free cash flow (11.6% yield on market cap)
• Established organization with 15,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($35) with negative 172% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

PVH Corp. Common Stock is a small-cap consumer cyclical company valued at $4.4 billion. Revenue stands at $9.0 billion, though the company is currently unprofitable. From a quality standpoint, PVH shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.5 warrants caution. On valuation, the stock is commanding a steep 183.4x multiple, with trades far above its Graham Number ($35) with no margin of safety. Growth dynamics show revenue growing at 5.6% and profit growth of -200.7%. Our composite FairStock Score of 28/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $506 million in annual free cash flow (11.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 183x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer