RH (RH) Stock Fundamental Analysis
NYSE:RH - New York Stock Exchange, Inc. - US74967X1037 - Common Stock - Currency: USD
RH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. RH has a medium profitability rating, but doesn't score so well on its financial health evaluation. RH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RH was profitable.
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
With a Return On Assets value of 1.59%, RH perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
RH has a Return On Invested Capital of 7.62%. This is in the better half of the industry: RH outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RH is below the industry average of 13.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | N/A | ||
| ROIC | 7.62% |
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 2.28%. This is comparable to the rest of the industry: RH outperforms 60.00% of its industry peers.
RH's Profit Margin has declined in the last couple of years.
RH has a Operating Margin of 9.85%. This is amongst the best in the industry. RH outperforms 84.17% 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 44.48%, RH is in the better half of the industry, outperforming 68.33% 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 | 9.85% | ||
| PM (TTM) | 2.28% | ||
| GM | 44.48% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RH is still creating some value.
The number of shares outstanding for RH has been increased compared to 1 year ago.
Compared to 5 years ago, RH has less shares outstanding
The debt/assets ratio for RH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that RH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RH (1.29) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.76
WACC10.06%
2.3 Liquidity
A Current Ratio of 1.43 indicates that RH should not have too much problems paying its short term obligations.
RH has a Current ratio (1.43) which is in line with its industry peers.
A Quick Ratio of 0.30 indicates that RH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.30, RH is doing worse than 74.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
RH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.93%.
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.
The Revenue has been growing slightly by 5.00% in the past year.
Measured over the past years, RH shows a small growth in Revenue. The Revenue has been growing by 3.74% on average per year.
EPS 1Y (TTM)-16.93%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%119.44%
Revenue 1Y (TTM)5%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%10.04%
3.2 Future
RH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.55% yearly.
RH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.04% yearly.
EPS Next Y95.08%
EPS Next 2Y66.46%
EPS Next 3Y52.71%
EPS Next 5Y48.55%
Revenue Next Year9.92%
Revenue Next 2Y10.11%
Revenue Next 3Y9.47%
Revenue Next 5Y9.04%
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.
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
The Price/Earnings ratio is 35.35, which means the current valuation is very expensive for RH.
The rest of the industry has a similar Price/Earnings ratio as RH.
RH is valuated rather expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.12, RH is valued on the expensive side.
61.67% of the companies in the same industry are more expensive than RH, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RH to the average of the S&P500 Index (22.13), we can say RH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.35 | ||
| Fwd PE | 18.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.76 |
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.
RH's earnings are expected to grow with 52.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y66.46%
EPS Next 3Y52.71%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
189.12
+12.25 (+6.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.24%
Inst Owner Change5.45%
Ins Owners18.78%
Ins Owner Change0.07%
Market Cap3.54B
Analysts74.29
Price Target269.55 (42.53%)
Short Float %21.29%
Short Ratio1.66
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)0
Avg EPS beat(2)-14.55%
Min EPS beat(2)-19.91%
Max EPS beat(2)-9.2%
EPS beat(4)1
Avg EPS beat(4)-59.98%
Min EPS beat(4)-215.73%
Max EPS beat(4)4.91%
EPS beat(8)3
Avg EPS beat(8)-48.64%
EPS beat(12)6
Avg EPS beat(12)-27.64%
EPS beat(16)9
Avg EPS beat(16)-17.97%
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-4.92%
Max Revenue beat(2)-2.96%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.31%
Revenue beat(8)0
Avg Revenue beat(8)-3.31%
Revenue beat(12)2
Avg Revenue beat(12)-2.47%
Revenue beat(16)3
Avg Revenue beat(16)-1.72%
PT rev (1m)0.18%
PT rev (3m)-43.15%
EPS NQ rev (1m)-8.98%
EPS NQ rev (3m)-105.31%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-22.63%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-3.61%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.35 | ||
| Fwd PE | 18.12 | ||
| P/S | 1.11 | ||
| P/FCF | N/A | ||
| P/OCF | 207.21 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.76 |
EPS(TTM)5.35
EY2.83%
EPS(NY)10.44
Fwd EY5.52%
FCF(TTM)-11.41
FCFYN/A
OCF(TTM)0.91
OCFY0.48%
SpS169.82
BVpS-8.73
TBVpS-20.32
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | N/A | ||
| ROCE | 8.58% | ||
| ROIC | 7.62% | ||
| ROICexc | 7.69% | ||
| ROICexgc | 8.18% | ||
| OM | 9.85% | ||
| PM (TTM) | 2.28% | ||
| GM | 44.48% | ||
| 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 | 7.26 | ||
| Cap/Depr | 177.27% | ||
| Cap/Sales | 7.26% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 3.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 1.29 |
F-Score4
WACC10.06%
ROIC/WACC0.76
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)-16.93%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%119.44%
EPS Next Y95.08%
EPS Next 2Y66.46%
EPS Next 3Y52.71%
EPS Next 5Y48.55%
Revenue 1Y (TTM)5%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%10.04%
Revenue Next Year9.92%
Revenue Next 2Y10.11%
Revenue Next 3Y9.47%
Revenue Next 5Y9.04%
EBIT growth 1Y-14.54%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year79.99%
EBIT Next 3Y36.64%
EBIT Next 5Y26.15%
FCF growth 1Y-218.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-91.55%
OCF growth 3Y-70.44%
OCF growth 5Y-44.98%