RH (RH) Stock Fundamental Analysis
NYSE:RH - New York Stock Exchange, Inc. - US74967X1037 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to RH. RH was compared to 121 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
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
RH has a Return On Assets (1.59%) which is in line with its industry peers.
RH has a better Return On Invested Capital (7.62%) than 66.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RH is below the industry average of 12.74%.
| 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 (2.28%) which is in line with its industry peers.
In the last couple of years the Profit Margin of RH has declined.
RH's Operating Margin of 9.85% is amongst the best of the industry. RH outperforms 83.47% of its industry peers.
In the last couple of years the Operating Margin of RH has declined.
With a decent Gross Margin value of 44.48%, RH is doing good in the industry, outperforming 67.77% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RH is creating some value.
Compared to 1 year ago, RH has more shares outstanding
Compared to 5 years ago, RH has less shares outstanding
RH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that RH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RH (1.32) is worse than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.74
WACC10.32%
2.3 Liquidity
A Current Ratio of 1.43 indicates that RH should not have too much problems paying its short term obligations.
RH's Current ratio of 1.43 is in line compared to the rest of the industry. RH outperforms 52.07% of its industry peers.
RH has a Quick Ratio of 1.43. 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 worse Quick ratio (0.30) than 76.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The earnings per share for RH have decreased strongly by -16.93% in the last 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.
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
Based on estimates for the next years, RH will show a very strong growth in Earnings Per Share. The EPS will grow by 48.55% on average per year.
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 3Y52.21%
EPS Next 5Y48.55%
Revenue Next Year9.92%
Revenue Next 2Y10.11%
Revenue Next 3Y9.43%
Revenue Next 5Y9.04%
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
The Price/Earnings ratio is 34.56, which means the current valuation is very expensive for RH.
RH's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.82, RH is valued a bit more expensive.
A Price/Forward Earnings ratio of 17.71 indicates a rather expensive valuation of RH.
RH's Price/Forward Earnings ratio is in line with the industry average.
RH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.56 | ||
| Fwd PE | 17.71 |
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 | 15.2 |
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.
A more expensive valuation may be justified as RH's earnings are expected to grow with 52.21% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y66.46%
EPS Next 3Y52.21%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
184.88
-2.38 (-1.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.24%
Inst Owner Change5.44%
Ins Owners18.78%
Ins Owner Change0.07%
Market Cap3.46B
Analysts75.86
Price Target264.13 (42.87%)
Short Float %20.28%
Short Ratio1.56
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)-37.34%
PT rev (3m)-43.53%
EPS NQ rev (1m)-23.87%
EPS NQ rev (3m)-105.32%
EPS NY rev (1m)-0.51%
EPS NY rev (3m)-22.56%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-3.56%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-4.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.56 | ||
| Fwd PE | 17.71 | ||
| P/S | 1.09 | ||
| P/FCF | N/A | ||
| P/OCF | 202.56 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.2 |
EPS(TTM)5.35
EY2.89%
EPS(NY)10.44
Fwd EY5.65%
FCF(TTM)-11.41
FCFYN/A
OCF(TTM)0.91
OCFY0.49%
SpS169.82
BVpS-8.73
TBVpS-20.32
PEG (NY)0.36
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 | 1.32 |
F-Score4
WACC10.32%
ROIC/WACC0.74
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 3Y52.21%
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 3Y9.43%
Revenue Next 5Y9.04%
EBIT growth 1Y-14.54%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year79.34%
EBIT Next 3Y38.26%
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%