RH (RH) Stock Fundamental Analysis
USA - NYSE:RH - US74967X1037 - Common Stock
173.37 USD
-11.94 (-6.44%)
173.35 USD
-0.02 (-0.01%)
We assign a fundamental rating of 4 out of 10 to RH. RH was compared to 122 industry peers in the Specialty Retail industry. While RH is still in line with the averages on profitability rating, there are concerns on its financial health. RH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RH had positive earnings in the past year.
RH had a positive operating cash flow in the past year.
In the past 5 years RH has always been profitable.
RH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RH's Return On Assets of 2.27% is in line compared to the rest of the industry. RH outperforms 56.56% of its industry peers.
With a decent Return On Invested Capital value of 8.46%, RH is doing good in the industry, outperforming 72.13% of the companies in the same industry.
RH had an Average Return On Invested Capital over the past 3 years of 10.73%. This is in line with the industry average of 11.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | N/A | ||
| ROIC | 8.46% |
ROA(3y)4.87%
ROA(5y)7.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.73%
ROIC(5y)14.31%
1.3 Margins
Looking at the Profit Margin, with a value of 3.20%, RH is in the better half of the industry, outperforming 70.49% of the companies in the same industry.
RH's Profit Margin has declined in the last couple of years.
The Operating Margin of RH (10.68%) is better than 84.43% of its industry peers.
RH's Operating Margin has declined in the last couple of years.
The Gross Margin of RH (44.61%) is better than 70.49% of its industry peers.
RH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.68% | ||
| PM (TTM) | 3.2% | ||
| GM | 44.61% |
OM growth 3Y-26.37%
OM growth 5Y-6.4%
PM growth 3Y-50.1%
PM growth 5Y-22.84%
GM growth 3Y-3.41%
GM growth 5Y1.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RH is creating some value.
RH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RH has less shares outstanding
Compared to 1 year ago, RH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that RH is in the distress zone and has some risk of bankruptcy.
RH's Altman-Z score of 1.30 is on the low side compared to the rest of the industry. RH is outperformed by 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.84
WACC10.09%
2.3 Liquidity
RH has a Current Ratio of 1.26. This is a normal value and indicates that RH is financially healthy and should not expect problems in meeting its short term obligations.
RH's Current ratio of 1.26 is in line compared to the rest of the industry. RH outperforms 45.08% of its industry peers.
RH has a Quick Ratio of 1.26. This is a bad value and indicates that RH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.26, RH is not doing good in the industry: 81.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
RH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 347.80%, which is quite impressive.
RH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.46% yearly.
RH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.56%.
Measured over the past years, RH shows a small growth in Revenue. The Revenue has been growing by 3.74% on average per year.
EPS 1Y (TTM)347.8%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%73.37%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
3.2 Future
Based on estimates for the next years, RH will show a very strong growth in Earnings Per Share. The EPS will grow by 47.65% on average per year.
Based on estimates for the next years, RH will show a quite strong growth in Revenue. The Revenue will grow by 8.41% on average per year.
EPS Next Y73.57%
EPS Next 2Y57.8%
EPS Next 3Y49.48%
EPS Next 5Y47.65%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.48%
Revenue Next 5Y8.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
RH is valuated rather expensively with a Price/Earnings ratio of 24.35.
Compared to the rest of the industry, the Price/Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 66.39% of the companies listed in the same industry.
RH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.02.
RH is valuated correctly with a Price/Forward Earnings ratio of 13.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 70.49% of the companies listed in the same industry.
RH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RH's earnings are expected to grow with 49.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y57.8%
EPS Next 3Y49.48%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
173.37
-11.94 (-6.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.63%
Inst Owner Change0.01%
Ins Owners18.49%
Ins Owner Change0.6%
Market Cap3.25B
Analysts72.86
Price Target261.45 (50.8%)
Short Float %19.55%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)115.8%
Min EPS beat(2)-11.15%
Max EPS beat(2)242.76%
EPS beat(4)1
Avg EPS beat(4)50.63%
Min EPS beat(4)-19.91%
Max EPS beat(4)242.76%
EPS beat(8)2
Avg EPS beat(8)-26.14%
EPS beat(12)5
Avg EPS beat(12)-13.06%
EPS beat(16)8
Avg EPS beat(16)-6.17%
Revenue beat(2)0
Avg Revenue beat(2)-3.45%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.96%
Revenue beat(8)0
Avg Revenue beat(8)-3.89%
Revenue beat(12)1
Avg Revenue beat(12)-3.04%
Revenue beat(16)2
Avg Revenue beat(16)-2.7%
PT rev (1m)-1.8%
PT rev (3m)-1.39%
EPS NQ rev (1m)-35.84%
EPS NQ rev (3m)-47.05%
EPS NY rev (1m)-13.94%
EPS NY rev (3m)-13.23%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 13.01 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | 18.67 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.04 |
EPS(TTM)7.12
EY4.11%
EPS(NY)13.32
Fwd EY7.68%
FCF(TTM)-2.88
FCFYN/A
OCF(TTM)9.29
OCFY5.36%
SpS177.99
BVpS-2.18
TBVpS-14.1
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | N/A | ||
| ROCE | 9.53% | ||
| ROIC | 8.46% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 9.09% | ||
| OM | 10.68% | ||
| PM (TTM) | 3.2% | ||
| GM | 44.61% | ||
| FCFM | N/A |
ROA(3y)4.87%
ROA(5y)7.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.73%
ROIC(5y)14.31%
ROICexc(3y)13.37%
ROICexc(5y)19.61%
ROICexgc(3y)14.37%
ROICexgc(5y)21.51%
ROCE(3y)12.08%
ROCE(5y)16.12%
ROICexcg growth 3Y-40.85%
ROICexcg growth 5Y-20.42%
ROICexc growth 3Y-40.13%
ROICexc growth 5Y-18.93%
OM growth 3Y-26.37%
OM growth 5Y-6.4%
PM growth 3Y-50.1%
PM growth 5Y-22.84%
GM growth 3Y-3.41%
GM growth 5Y1.47%
F-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 166.49% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 1.3 |
F-Score8
WACC10.09%
ROIC/WACC0.84
Cap/Depr(3y)187.83%
Cap/Depr(5y)173.54%
Cap/Sales(3y)6.99%
Cap/Sales(5y)5.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)347.8%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%73.37%
EPS Next Y73.57%
EPS Next 2Y57.8%
EPS Next 3Y49.48%
EPS Next 5Y47.65%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.48%
Revenue Next 5Y8.41%
EBIT growth 1Y38.53%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year70.77%
EBIT Next 3Y35.37%
EBIT Next 5Y26.15%
FCF growth 1Y-120.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.12%
OCF growth 3Y-70.44%
OCF growth 5Y-44.98%