RH (RH) Stock Fundamental Analysis
NYSE:RH - US74967X1037 - Common Stock
241.73 USD
+22.94 (+10.48%)
RH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 124 industry peers in the Specialty Retail industry. There are concerns on the financial health of RH while its profitability can be described as average. RH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RH had positive earnings in the past year.
In the past year RH had a positive cash flow from operations.
RH had positive earnings in each of the past 5 years.
Each year in the past 5 years RH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RH (1.81%) is comparable to the rest of the industry.
RH has a Return On Invested Capital of 7.74%. This is in the better half of the industry: RH outperforms 68.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RH is in line with the industry average of 11.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | N/A | ||
| ROIC | 7.74% |
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
With a decent Profit Margin value of 2.57%, RH is doing good in the industry, outperforming 64.52% of the companies in the same industry.
In the last couple of years the Profit Margin of RH has declined.
The Operating Margin of RH (9.91%) is better than 84.68% of its industry peers.
In the last couple of years the Operating Margin of RH has declined.
The Gross Margin of RH (44.50%) is better than 68.55% of its industry peers.
RH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.91% | ||
| PM (TTM) | 2.57% | ||
| GM | 44.5% |
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.
Compared to 1 year ago, RH has more shares outstanding
The number of shares outstanding for RH has been reduced compared to 5 years ago.
RH has a better debt/assets ratio than last year.
2.2 Solvency
RH has an Altman-Z score of 1.39. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
RH has a worse Altman-Z score (1.39) than 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC0.78
WACC9.97%
2.3 Liquidity
A Current Ratio of 1.37 indicates that RH should not have too much problems paying its short term obligations.
RH's Current ratio of 1.37 is in line compared to the rest of the industry. RH outperforms 51.61% of its industry peers.
A Quick Ratio of 0.29 indicates that RH may have some problems paying its short term obligations.
The Quick ratio of RH (0.29) is worse than 71.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 53.52% over the past year.
RH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.46% yearly.
The Revenue has grown by 8.31% in the past year. This is quite good.
RH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.74% yearly.
EPS 1Y (TTM)53.52%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%132.5%
Revenue 1Y (TTM)8.31%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%11.97%
3.2 Future
The Earnings Per Share is expected to grow by 47.52% on average over the next years. This is a very strong growth
Based on estimates for the next years, RH will show a quite strong growth in Revenue. The Revenue will grow by 8.75% on average per year.
EPS Next Y102.9%
EPS Next 2Y66.63%
EPS Next 3Y53.48%
EPS Next 5Y47.52%
Revenue Next Year9.92%
Revenue Next 2Y10.05%
Revenue Next 3Y9.47%
Revenue Next 5Y8.75%
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
A Price/Earnings ratio of 41.11 indicates a quite expensive valuation of RH.
RH's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.76. RH is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 16.27 indicates a correct valuation of RH.
Based on the Price/Forward Earnings ratio, RH is valued a bit cheaper than the industry average as 65.32% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RH to the average of the S&P500 Index (34.91), we can say RH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.11 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
RH's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.89 |
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.
A more expensive valuation may be justified as RH's earnings are expected to grow with 53.48% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y66.63%
EPS Next 3Y53.48%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:RH (8/22/2025, 1:23:42 PM)
241.73
+22.94 (+10.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.25%
Inst Owner Change-4.53%
Ins Owners18.41%
Ins Owner Change0.15%
Market Cap4.53B
Analysts73.57
Price Target265.91 (10%)
Short Float %22.78%
Short Ratio2.69
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)111.43%
Min EPS beat(2)-19.91%
Max EPS beat(2)242.76%
EPS beat(4)2
Avg EPS beat(4)54.64%
Min EPS beat(4)-19.91%
Max EPS beat(4)242.76%
EPS beat(8)3
Avg EPS beat(8)-18.62%
EPS beat(12)6
Avg EPS beat(12)-10.72%
EPS beat(16)9
Avg EPS beat(16)-3.78%
Revenue beat(2)0
Avg Revenue beat(2)-4.16%
Min Revenue beat(2)-4.92%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.31%
Revenue beat(8)0
Avg Revenue beat(8)-3.58%
Revenue beat(12)1
Avg Revenue beat(12)-2.8%
Revenue beat(16)2
Avg Revenue beat(16)-2.58%
PT rev (1m)0.29%
PT rev (3m)0.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)0%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.11 | ||
| Fwd PE | 16.27 | ||
| P/S | 1.39 | ||
| P/FCF | N/A | ||
| P/OCF | 95.11 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.89 |
EPS(TTM)5.88
EY2.43%
EPS(NY)14.85
Fwd EY6.15%
FCF(TTM)-9.05
FCFYN/A
OCF(TTM)2.54
OCFY1.05%
SpS174.47
BVpS-5.91
TBVpS-17.66
PEG (NY)0.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | N/A | ||
| ROCE | 8.71% | ||
| ROIC | 7.74% | ||
| ROICexc | 7.84% | ||
| ROICexgc | 8.34% | ||
| OM | 9.91% | ||
| PM (TTM) | 2.57% | ||
| GM | 44.5% | ||
| 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-Score4
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.96 | ||
| Cap/Depr | 161.29% | ||
| Cap/Sales | 6.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 10.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 1.39 |
F-Score4
WACC9.97%
ROIC/WACC0.78
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)53.52%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%132.5%
EPS Next Y102.9%
EPS Next 2Y66.63%
EPS Next 3Y53.48%
EPS Next 5Y47.52%
Revenue 1Y (TTM)8.31%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%11.97%
Revenue Next Year9.92%
Revenue Next 2Y10.05%
Revenue Next 3Y9.47%
Revenue Next 5Y8.75%
EBIT growth 1Y3.6%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year80.79%
EBIT Next 3Y36.87%
EBIT Next 5Y26.15%
FCF growth 1Y-196.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-86.57%
OCF growth 3Y-70.44%
OCF growth 5Y-44.98%