RH (RH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:RH • US74967X1037
195.73 USD
-3.1 (-1.56%)
At close: Feb 2, 2026
195.9 USD
+0.17 (+0.09%)
After Hours: 2/2/2026, 8:04:00 PM
We assign a fundamental rating of 4 out of 10 to RH. RH was compared to 121 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.
- RH had a positive operating cash flow in the past year.
- In the past 5 years RH has always been profitable.
- In the past 5 years RH always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.29%, RH perfoms like the industry average, outperforming 56.20% of the companies in the same industry.
- The Return On Equity of RH (3285.39%) is better than 100.00% of its industry peers.
- RH's Return On Invested Capital of 8.26% is fine compared to the rest of the industry. RH outperforms 68.59% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RH is in line with the industry average of 12.11%.
| 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
- With a decent Profit Margin value of 3.22%, RH is doing good in the industry, outperforming 69.42% of the companies in the same industry.
- RH's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 10.49%, RH belongs to the best of the industry, outperforming 84.30% of the companies in the same industry.
- RH's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 44.50%, RH is doing good in the industry, outperforming 70.25% of the companies in the same industry.
- 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. 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.
- RH has more shares outstanding than it did 1 year ago.
- RH has less shares outstanding than it did 5 years ago.
- RH has a better debt/assets ratio than last year.
2.2 Solvency
- RH has an Altman-Z score of 1.35. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
- RH's Altman-Z score of 1.35 is on the low side compared to the rest of the industry. RH is outperformed by 66.94% of its industry peers.
- 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.
- RH has a Debt to FCF ratio (25.66) which is in line with its industry peers.
- A Debt/Equity ratio of 944.39 is on the high side and indicates that RH has dependencies on debt financing.
- The Debt to Equity ratio of RH (944.39) is worse than 80.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.8
WACC10.36%
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 is not doing good in the industry: 61.16% of the companies in the same industry are doing better.
- A Quick Ratio of 0.26 indicates that RH may have some problems paying its short term obligations.
- With a Quick ratio value of 0.26, RH is not doing good in the industry: 80.17% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| 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 41.43%, which is quite impressive.
- Measured over the past years, RH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.46% on average per year.
- Looking at the last year, RH shows a quite strong growth in Revenue. The Revenue has grown by 9.74% in the last year.
- 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
- The Earnings Per Share is expected to grow by 45.55% 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 8.19% on average per year.
EPS Next Y36.4%
EPS Next 2Y41.7%
EPS Next 3Y39.79%
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.
- 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 quite expensively with a Price/Earnings ratio of 30.82.
- 62.81% of the companies in the same industry are more expensive than RH, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.41, RH is valued at the same level.
- With a Price/Forward Earnings ratio of 18.22, RH is valued on the expensive side.
- RH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 64.46% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of RH to the average of the S&P500 Index (25.64), we can say RH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
- RH's Enterprise Value to EBITDA is on the same level as the industry average.
- RH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RH is cheaper than 61.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.37 | ||
| EV/EBITDA | 13.78 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
- RH's earnings are expected to grow with 39.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y41.7%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
- RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
195.73
-3.1 (-1.56%)
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 Change-0.53%
Ins Owners18.46%
Ins Owner Change0.47%
Market Cap3.67B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target200.88 (2.63%)
Short Float %25.22%
Short Ratio3.54
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)-23.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.9%
EPS NY rev (1m)-2.41%
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 | 30.82 | ||
| Fwd PE | 18.22 | ||
| P/S | 1.08 | ||
| P/FCF | 29.37 | ||
| P/OCF | 10.88 | ||
| P/B | 1096.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.78 |
EPS(TTM)6.35
EY3.24%
EPS(NY)10.74
Fwd EY5.49%
FCF(TTM)6.66
FCFY3.4%
OCF(TTM)17.99
OCFY9.19%
SpS181.83
BVpS0.18
TBVpS-11.74
PEG (NY)0.85
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 | 1.35 |
F-Score7
WACC10.36%
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 Y36.4%
EPS Next 2Y41.7%
EPS Next 3Y39.79%
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 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 5 / 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 30.82 and the Price/Book (PB) ratio is 1096.81.