RH (RH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RH - US74967X1037 - Common Stock
193.41 USD
+14.26 (+7.96%)
194 USD
+0.59 (+0.31%)
Taking everything into account, RH scores 4 out of 10 in our fundamental rating. RH was compared to 123 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 has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years RH has 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 2.29% is in line compared to the rest of the industry. RH outperforms 56.91% of its industry peers.
RH's Return On Equity of 3285.39% is amongst the best of the industry. RH outperforms 100.00% of its industry peers.
With a decent Return On Invested Capital value of 8.26%, RH is doing good in the industry, outperforming 69.11% 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 12.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 3285.39% | ||
| ROIC | 8.26% |
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
RH's Profit Margin of 3.22% is fine compared to the rest of the industry. RH outperforms 69.92% of its industry peers.
RH's Profit Margin has declined in the last couple of years.
RH has a Operating Margin of 10.49%. This is amongst the best in the industry. RH outperforms 84.55% of its industry peers.
In the last couple of years the Operating Margin of RH has declined.
Looking at the Gross Margin, with a value of 44.50%, RH is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
RH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.49% | ||
| PM (TTM) | 3.22% | ||
| 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
RH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RH has more shares outstanding
RH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RH has an improved debt to assets ratio.
2.2 Solvency
RH has an Altman-Z score of 1.30. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.30, RH is doing worse than 67.48% of the companies in the same industry.
The Debt to FCF ratio of RH is 25.66, which is on the high side as it means it would take RH, 25.66 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 25.66, RH is in line with its industry, outperforming 47.97% of the companies in the same industry.
RH has a Debt/Equity ratio of 944.39. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 944.39, RH is doing worse than 81.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.8
WACC10.28%
2.3 Liquidity
RH has a Current Ratio of 1.19. This is a normal value and indicates that RH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.19, RH is doing worse than 61.79% of the companies in the same industry.
A Quick Ratio of 0.26 indicates that RH may have some problems paying its short term obligations.
RH has a worse Quick ratio (0.26) than 81.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.43% 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.
RH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.74%.
RH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.74% yearly.
EPS 1Y (TTM)41.43%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%-31.05%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.88%
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.
RH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.41% yearly.
EPS Next Y39.78%
EPS Next 2Y42.75%
EPS Next 3Y39.79%
EPS Next 5Y47.65%
Revenue Next Year8.46%
Revenue Next 2Y8.68%
Revenue Next 3Y8.41%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RH is valuated quite expensively with a Price/Earnings ratio of 30.46.
62.60% of the companies in the same industry are more expensive than RH, based on the Price/Earnings ratio.
RH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
RH is valuated rather expensively with a Price/Forward Earnings ratio of 17.74.
Based on the Price/Forward Earnings ratio, RH is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.23. RH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 17.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RH.
RH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RH is cheaper than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.02 | ||
| 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.
The decent profitability rating of RH may justify a higher PE ratio.
A more expensive valuation may be justified as RH's earnings are expected to grow with 39.79% in the coming years.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y42.75%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
193.41
+14.26 (+7.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.44%
Inst Owner Change-0.61%
Ins Owners18.49%
Ins Owner Change0.47%
Market Cap3.63B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts72.86
Price Target200.88 (3.86%)
Short Float %24.25%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0
Avg EPS beat(2)-17.17%
Min EPS beat(2)-23.18%
Max EPS beat(2)-11.15%
EPS beat(4)1
Avg EPS beat(4)47.13%
Min EPS beat(4)-23.18%
Max EPS beat(4)242.76%
EPS beat(8)2
Avg EPS beat(8)-11.2%
EPS beat(12)4
Avg EPS beat(12)-16.41%
EPS beat(16)7
Avg EPS beat(16)-7.8%
Revenue beat(2)0
Avg Revenue beat(2)-3.2%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-2.9%
Revenue beat(4)0
Avg Revenue beat(4)-3.68%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.9%
Revenue beat(8)0
Avg Revenue beat(8)-3.8%
Revenue beat(12)0
Avg Revenue beat(12)-3.34%
Revenue beat(16)2
Avg Revenue beat(16)-2.84%
PT rev (1m)-21.04%
PT rev (3m)-24.08%
EPS NQ rev (1m)-38.9%
EPS NQ rev (3m)-31.08%
EPS NY rev (1m)-19.47%
EPS NY rev (3m)-19.47%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 17.74 | ||
| P/S | 1.06 | ||
| P/FCF | 29.02 | ||
| P/OCF | 10.75 | ||
| P/B | 1083.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.04 |
EPS(TTM)6.35
EY3.28%
EPS(NY)10.9
Fwd EY5.64%
FCF(TTM)6.66
FCFY3.45%
OCF(TTM)17.99
OCFY9.3%
SpS181.83
BVpS0.18
TBVpS-11.74
PEG (NY)0.77
PEG (5Y)N/A
Graham Number5.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 3285.39% | ||
| ROCE | 9.3% | ||
| ROIC | 8.26% | ||
| ROICexc | 8.35% | ||
| ROICexgc | 8.87% | ||
| OM | 10.49% | ||
| PM (TTM) | 3.22% | ||
| GM | 44.5% | ||
| FCFM | 3.67% |
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%
ROICexgc growth 3Y-40.85%
ROICexgc 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-Score7
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Debt/EBITDA | 6.32 | ||
| Cap/Depr | 149.24% | ||
| Cap/Sales | 6.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.48% | ||
| Profit Quality | 113.67% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 1.3 |
F-Score7
WACC10.28%
ROIC/WACC0.8
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)41.43%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%-31.05%
EPS Next Y39.78%
EPS Next 2Y42.75%
EPS Next 3Y39.79%
EPS Next 5Y47.65%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.88%
Revenue Next Year8.46%
Revenue Next 2Y8.68%
Revenue Next 3Y8.41%
Revenue Next 5Y8.41%
EBIT growth 1Y16.26%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year55.61%
EBIT Next 3Y25.79%
EBIT Next 5Y26.15%
FCF growth 1Y-33.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.11%
OCF growth 3Y-70.44%
OCF growth 5Y-44.98%
RH / RH FAQ
Can you provide the ChartMill fundamental rating for RH?
ChartMill assigns a fundamental rating of 4 / 10 to RH.
Can you provide the valuation status for RH?
ChartMill assigns a valuation rating of 6 / 10 to RH (RH). This can be considered as Fairly Valued.
Can you provide the profitability details for RH?
RH (RH) has a profitability rating of 6 / 10.
What is the valuation of RH based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RH (RH) is 30.46 and the Price/Book (PB) ratio is 1083.81.