RH (RH)
US74967X1037 - Common Stock
Taking everything into account, RH scores 4 out of 10 in our fundamental rating. RH was compared to 126 industry peers in the Specialty Retail industry. While RH has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, RH is valued expensive at the moment.
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.
RH had positive earnings in each of the past 5 years.
In the past 5 years RH always reported a positive cash flow from operatings.
1.2 Ratios
RH's Return On Assets of 3.08% is in line compared to the rest of the industry. RH outperforms 59.52% of its industry peers.
The Return On Invested Capital of RH (9.30%) is better than 69.05% 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 13.85%.
The 3 year average ROIC (13.39%) for RH is well above the current ROIC(9.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | N/A | ||
| ROIC | 9.3% |
ROA(3y)8.49%
ROA(5y)8.77%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.39%
ROIC(5y)15.93%
1.3 Margins
RH has a Profit Margin of 4.21%. This is in the better half of the industry: RH outperforms 73.02% of its industry peers.
RH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.10%, RH belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
In the last couple of years the Operating Margin of RH has grown nicely.
With a decent Gross Margin value of 45.85%, RH is doing good in the industry, outperforming 73.02% of the companies in the same industry.
RH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.1% | ||
| PM (TTM) | 4.21% | ||
| GM | 45.85% |
OM growth 3Y-8.97%
OM growth 5Y3.44%
PM growth 3Y-23.86%
PM growth 5Y-4.91%
GM growth 3Y-0.49%
GM growth 5Y3.12%
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.
The number of shares outstanding for RH has been reduced compared to 1 year ago.
Compared to 5 years ago, RH has less shares outstanding
Compared to 1 year ago, RH has a worse debt to assets ratio.
2.2 Solvency
RH has an Altman-Z score of 1.52. 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 1.52, RH is doing worse than 63.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.52 |
ROIC/WACC0.97
WACC9.64%
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.
With a Current ratio value of 1.26, RH is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
A Quick Ratio of 0.40 indicates that RH may have some problems paying its short term obligations.
RH's Quick ratio of 0.40 is on the low side compared to the rest of the industry. RH is outperformed by 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
RH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.62%.
Measured over the past years, RH shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.51% on average per year.
The Revenue for RH has decreased by -15.63% in the past year. This is quite bad
The Revenue has been growing slightly by 3.87% on average over the past years.
EPS 1Y (TTM)-73.62%
EPS 3Y-28.26%
EPS 5Y-4.51%
EPS growth Q2Q-75%
Revenue 1Y (TTM)-15.63%
Revenue growth 3Y2.07%
Revenue growth 5Y3.87%
Revenue growth Q2Q-4.43%
3.2 Future
The Earnings Per Share is expected to grow by 40.65% on average over the next years. This is a very strong growth
RH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.13% yearly.
EPS Next Y43.76%
EPS Next 2Y53.75%
EPS Next 3Y45.02%
EPS Next 5Y40.65%
Revenue Next Year5.57%
Revenue Next 2Y7.71%
Revenue Next 3Y7.99%
Revenue Next 5Y7.13%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 37.79, RH can be considered very expensive at the moment.
RH's Price/Earnings ratio is in line with the industry average.
RH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.20.
Based on the Price/Forward Earnings ratio of 26.29, the valuation of RH can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RH.
The average S&P500 Price/Forward Earnings ratio is at 21.63. RH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.79 | ||
| Fwd PE | 26.29 |
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 | 15.54 |
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 45.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y53.75%
EPS Next 3Y45.02%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RH
NYSE:RH (4/25/2024, 6:24:12 PM)
After market: 245.5 +2.13 (+0.88%)243.37
-8.48 (-3.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.79 | ||
| Fwd PE | 26.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.1% | ||
| PM (TTM) | 4.21% | ||
| GM | 45.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-73.62%
EPS 3Y-28.26%
EPS 5Y
EPS growth Q2Q
EPS Next Y43.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.63%
Revenue growth 3Y2.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 5Y