RH (RH) Stock Fundamental Analysis
USA - NYSE:RH - US74967X1037 - Common Stock
158.06 USD
-8.13 (-4.89%)
159.891 USD
+1.83 (+1.16%)
We assign a fundamental rating of 4 out of 10 to RH. RH was compared to 121 industry peers in the Specialty Retail industry. While RH is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Each year in the past 5 years RH has been profitable.
RH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RH (2.27%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.46%, RH is in the better half of the industry, outperforming 71.07% 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 in line with the industry average of 11.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | N/A | ||
| ROIC | 8.46% |
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 3.20%. This is in the better half of the industry: RH outperforms 70.25% of its industry peers.
In the last couple of years the Profit Margin of RH has declined.
RH's Operating Margin of 10.68% 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.
RH has a Gross Margin of 44.61%. This is in the better half of the industry: RH outperforms 71.07% 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 | 10.68% | ||
| PM (TTM) | 3.2% | ||
| GM | 44.61% |
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.
The number of shares outstanding for RH has been reduced compared to 5 years ago.
Compared to 1 year ago, RH has an improved debt to assets ratio.
2.2 Solvency
RH has an Altman-Z score of 1.28. 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 1.28 is on the low side compared to the rest of the industry. RH is outperformed by 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.84
WACC10.08%
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.
The Current ratio of RH (1.26) is comparable to the rest of the industry.
A Quick Ratio of 0.26 indicates that RH may have some problems paying its short term obligations.
The Quick ratio of RH (0.26) is worse than 85.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 347.80% 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.
Looking at the last year, RH shows a quite strong growth in Revenue. The Revenue has grown by 9.56% in the last year.
The Revenue has been growing slightly by 3.74% on average over the past years.
EPS 1Y (TTM)347.8%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%73.37%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
3.2 Future
RH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.65% yearly.
The Revenue is expected to grow by 8.41% on average over the next years. This is quite good.
EPS Next Y73.57%
EPS Next 2Y57.63%
EPS Next 3Y50.61%
EPS Next 5Y47.65%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.41%
Revenue Next 5Y8.41%
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
Based on the Price/Earnings ratio of 22.20, the valuation of RH can be described as rather expensive.
Based on the Price/Earnings ratio, RH is valued a bit cheaper than 67.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.67. RH is around the same levels.
RH is valuated reasonably with a Price/Forward Earnings ratio of 11.89.
Based on the Price/Forward Earnings ratio, RH is valued a bit cheaper than 71.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 31.86. RH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 11.89 |
4.2 Price Multiples
RH's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.76 |
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.
A more expensive valuation may be justified as RH's earnings are expected to grow with 50.61% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y57.63%
EPS Next 3Y50.61%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
158.06
-8.13 (-4.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.63%
Inst Owner Change-1.98%
Ins Owners18.49%
Ins Owner Change0.6%
Market Cap2.96B
Revenue(TTM)3.34B
Net Income(TTM)106.83M
Analysts72.86
Price Target254.39 (60.95%)
Short Float %20.81%
Short Ratio2.87
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)1
Avg EPS beat(2)115.8%
Min EPS beat(2)-11.15%
Max EPS beat(2)242.76%
EPS beat(4)1
Avg EPS beat(4)50.63%
Min EPS beat(4)-19.91%
Max EPS beat(4)242.76%
EPS beat(8)2
Avg EPS beat(8)-26.14%
EPS beat(12)5
Avg EPS beat(12)-13.06%
EPS beat(16)8
Avg EPS beat(16)-6.17%
Revenue beat(2)0
Avg Revenue beat(2)-3.45%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.96%
Revenue beat(8)0
Avg Revenue beat(8)-3.89%
Revenue beat(12)1
Avg Revenue beat(12)-3.04%
Revenue beat(16)2
Avg Revenue beat(16)-2.7%
PT rev (1m)-3.85%
PT rev (3m)-3.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-47.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 11.89 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | 17.02 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.76 |
EPS(TTM)7.12
EY4.5%
EPS(NY)13.29
Fwd EY8.41%
FCF(TTM)-2.88
FCFYN/A
OCF(TTM)9.29
OCFY5.87%
SpS177.99
BVpS-2.18
TBVpS-14.1
PEG (NY)0.3
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | N/A | ||
| ROCE | 9.53% | ||
| ROIC | 8.46% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 9.09% | ||
| OM | 10.68% | ||
| PM (TTM) | 3.2% | ||
| GM | 44.61% | ||
| 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%
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-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 166.49% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 1.28 |
F-Score8
WACC10.08%
ROIC/WACC0.84
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)347.8%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%73.37%
EPS Next Y73.57%
EPS Next 2Y57.63%
EPS Next 3Y50.61%
EPS Next 5Y47.65%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.41%
Revenue Next 5Y8.41%
EBIT growth 1Y38.53%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year70.77%
EBIT Next 3Y35.37%
EBIT Next 5Y26.15%
FCF growth 1Y-120.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.12%
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.
What is the valuation status for RH stock?
ChartMill assigns a valuation rating of 5 / 10 to RH (RH). This can be considered as Fairly Valued.
What is the profitability of RH stock?
RH (RH) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for RH stock?
The Price/Earnings (PE) ratio for RH (RH) is 22.2 and the Price/Book (PB) ratio is -72.46.