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
In the past year RH was profitable.
In the past year RH had a positive cash flow from operations.
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
With a Return On Assets value of 1.59%, RH perfoms like the industry average, outperforming 55.37% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.62%, RH is in the better half of the industry, outperforming 66.94% 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 below the industry average of 13.08%.
| 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 in the better half of the industry: RH outperforms 61.16% of its industry peers.
In the last couple of years the Profit Margin of RH has declined.
The Operating Margin of RH (9.85%) is better than 84.30% of its industry peers.
In the last couple of years the Operating Margin of RH has declined.
RH has a Gross Margin of 44.48%. This is in the better half of the industry: RH outperforms 67.77% 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 | 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
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.
Compared to 1 year ago, RH has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that RH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.31, RH is not doing good in the industry: 70.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.31 |
ROIC/WACC0.78
WACC9.79%
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 of 1.43. This is comparable 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's Quick ratio of 0.30 is on the low side compared to the rest of the industry. RH is outperformed by 74.38% of its industry peers.
| 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%.
The earnings per share for RH have been decreasing by -14.46% on average. This is quite bad
Looking at the last year, RH shows a small growth in Revenue. The Revenue has grown by 5.00% in the last year.
The Revenue has been growing slightly by 3.74% on average over the past years.
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.
The Revenue is expected to grow by 9.04% on average over the next years. This is quite good.
EPS Next Y96.08%
EPS Next 2Y68.28%
EPS Next 3Y54.42%
EPS Next 5Y48.55%
Revenue Next Year9.95%
Revenue Next 2Y10.24%
Revenue Next 3Y9.85%
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
Based on the Price/Earnings ratio of 36.74, the valuation of RH can be described as expensive.
RH's Price/Earnings is on the same level as the industry average.
RH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 18.74, RH is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RH is valued a bit cheaper than the industry average as 61.98% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RH to the average of the S&P500 Index (20.86), we can say RH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 18.74 |
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 | 15.1 |
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's earnings are expected to grow with 54.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y68.28%
EPS Next 3Y54.42%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
196.56
+11.8 (+6.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.24%
Inst Owner Change-0.2%
Ins Owners18.78%
Ins Owner Change0.07%
Market Cap3.68B
Analysts78.67
Price Target269.05 (36.88%)
Short Float %20.12%
Short Ratio1.61
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)-43.26%
PT rev (3m)-40.78%
EPS NQ rev (1m)-104.59%
EPS NQ rev (3m)-105.07%
EPS NY rev (1m)-20.83%
EPS NY rev (3m)-19.15%
Revenue NQ rev (1m)-3.22%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)-4.23%
Revenue NY rev (3m)-4.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 18.74 | ||
| P/S | 1.16 | ||
| P/FCF | N/A | ||
| P/OCF | 215.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.1 |
EPS(TTM)5.35
EY2.72%
EPS(NY)10.49
Fwd EY5.34%
FCF(TTM)-11.41
FCFYN/A
OCF(TTM)0.91
OCFY0.46%
SpS169.82
BVpS-8.73
TBVpS-20.32
PEG (NY)0.38
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 | 1.31 |
F-Score4
WACC9.79%
ROIC/WACC0.78
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 Y96.08%
EPS Next 2Y68.28%
EPS Next 3Y54.42%
EPS Next 5Y48.55%
Revenue 1Y (TTM)5%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%10.04%
Revenue Next Year9.95%
Revenue Next 2Y10.24%
Revenue Next 3Y9.85%
Revenue Next 5Y9.04%
EBIT growth 1Y-14.54%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year79.35%
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%