RH (RH) Fundamental Analysis & Valuation
NYSE:RH • US74967X1037
140.13 USD
-3.32 (-2.31%)
At close: Mar 11, 2026
138.5 USD
-1.63 (-1.16%)
After Hours: 3/11/2026, 8:23:13 PM
This RH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 4 out of 10 to RH. RH was compared to 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 has a correct valuation and a medium growth rate.
1. RH Profitability Analysis
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
- Looking at the Return On Assets, with a value of 2.29%, RH is in line with its industry, outperforming 58.06% of the companies in the same industry.
- RH has a Return On Equity of 3285.39%. This is amongst the best in 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 72.58% 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 below the industry average of 13.57%.
| 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 has a Profit Margin of 3.22%. This is in the better half of the industry: RH outperforms 70.16% of its industry peers.
- In the last couple of years the Profit Margin of RH has declined.
- RH's Operating Margin of 10.49% is amongst the best of the industry. RH outperforms 84.68% of its industry peers.
- RH's Operating Margin has declined in the last couple of years.
- RH has a Gross Margin of 44.50%. This is in the better half of the industry: RH outperforms 70.97% of its industry peers.
- In the last couple of years the Gross Margin of RH has remained more or less at the same level.
| 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. RH Health Analysis
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.
- RH has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for RH has been reduced compared to a year ago.
2.2 Solvency
- RH has an Altman-Z score of 1.21. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
- RH has a Altman-Z score of 1.21. This is in the lower half of the industry: RH underperforms 65.32% of its industry peers.
- RH has a debt to FCF ratio of 25.66. This is a negative value and a sign of low solvency as RH would need 25.66 years to pay back of all of its debts.
- RH has a Debt to FCF ratio (25.66) which is in line with its industry peers.
- 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 79.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.79
WACC10.44%
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.
- With a Current ratio value of 1.19, RH perfoms like the industry average, outperforming 40.32% of the companies in the same industry.
- RH has a Quick Ratio of 1.19. This is a bad value and indicates that RH is not financially healthy enough and could expect problems in meeting its short term obligations.
- RH has a Quick ratio of 0.26. This is in the lower half of the industry: RH underperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.26 |
3. RH Growth Analysis
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%.
- The Revenue has been growing slightly by 3.74% on average over the past years.
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 45.55% 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 8.19% on average per year.
EPS Next Y36.4%
EPS Next 2Y41.79%
EPS Next 3Y40.1%
EPS Next 5Y45.55%
Revenue Next Year8.46%
Revenue Next 2Y8.69%
Revenue Next 3Y8.43%
Revenue Next 5Y8.19%
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. RH Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.07, the valuation of RH can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 68.55% of the companies listed in the same industry.
- RH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 13.03, the valuation of RH can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 75.81% 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 24.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 13.03 |
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 66.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.06 | ||
| EV/EBITDA | 11.59 |
4.3 Compensation for Growth
- RH's 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.
- RH's earnings are expected to grow with 40.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y41.79%
EPS Next 3Y40.1%
5. RH Dividend Analysis
5.1 Amount
- No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
RH Fundamentals: All Metrics, Ratios and Statistics
140.13
-3.32 (-2.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-11 2025-12-11/amc
Earnings (Next)06-10 2026-06-10
Inst Owners88.19%
Inst Owner Change9.62%
Ins Owners18.46%
Ins Owner Change0.64%
Market Cap2.63B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target211.4 (50.86%)
Short Float %22.48%
Short Ratio3.41
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)0%
PT rev (3m)-16.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.07 | ||
| Fwd PE | 13.03 | ||
| P/S | 0.77 | ||
| P/FCF | 21.06 | ||
| P/OCF | 7.8 | ||
| P/B | 786.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.59 |
EPS(TTM)6.35
EY4.53%
EPS(NY)10.76
Fwd EY7.68%
FCF(TTM)6.65
FCFY4.75%
OCF(TTM)17.97
OCFY12.82%
SpS181.54
BVpS0.18
TBVpS-11.72
PEG (NY)0.61
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 | 1.21 |
F-Score7
WACC10.44%
ROIC/WACC0.79
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 Y36.4%
EPS Next 2Y41.79%
EPS Next 3Y40.1%
EPS Next 5Y45.55%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.88%
Revenue Next Year8.46%
Revenue Next 2Y8.69%
Revenue Next 3Y8.43%
Revenue Next 5Y8.19%
EBIT growth 1Y16.26%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year56.62%
EBIT Next 3Y26.31%
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 22.07 and the Price/Book (PB) ratio is 786.5.