RH (RH) Stock Fundamental Analysis
USA - NYSE:RH - US74967X1037 - Common Stock
222.83 USD
+5.21 (+2.39%)
222.76 USD
-0.07 (-0.03%)
Taking everything into account, RH scores 4 out of 10 in our fundamental rating. RH was compared to 121 industry peers in the Specialty Retail industry. There are concerns on the financial health of RH while its profitability can be described as average. RH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RH had positive earnings in the past year.
In the past year RH had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 1.81%, RH is in line with its industry, outperforming 55.37% of the companies in the same industry.
RH has a better Return On Invested Capital (7.74%) than 68.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RH is in line with the industry average of 12.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | N/A | ||
| ROIC | 7.74% |
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
The Profit Margin of RH (2.57%) is better than 66.12% of its industry peers.
In the last couple of years the Profit Margin of RH has declined.
RH's Operating Margin of 9.91% is amongst the best of the industry. RH outperforms 84.30% of its industry peers.
In the last couple of years the Operating Margin of RH has declined.
The Gross Margin of RH (44.50%) is better than 69.42% of its industry peers.
RH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.91% | ||
| PM (TTM) | 2.57% | ||
| GM | 44.5% |
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.
RH has more shares outstanding than it did 1 year ago.
RH has less shares outstanding than it did 5 years ago.
RH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.38, we must say that RH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.38, RH is not doing good in the industry: 65.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.38 |
ROIC/WACC0.75
WACC10.26%
2.3 Liquidity
A Current Ratio of 1.37 indicates that RH should not have too much problems paying its short term obligations.
RH has a Current ratio (1.37) which is comparable to the rest of the industry.
RH has a Quick Ratio of 1.37. 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 0.29 is on the low side compared to the rest of the industry. RH is outperformed by 77.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 347.80% over the past year.
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.
RH shows a small growth in Revenue. In the last year, the Revenue has grown by 5.01%.
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)347.8%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%73.37%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
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 47.52% on average per year.
RH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.
EPS Next Y101.69%
EPS Next 2Y65.77%
EPS Next 3Y53.48%
EPS Next 5Y47.52%
Revenue Next Year9.07%
Revenue Next 2Y9.94%
Revenue Next 3Y8.87%
Revenue Next 5Y8.75%
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
RH is valuated quite expensively with a Price/Earnings ratio of 31.30.
RH's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.27, RH is valued at the same level.
With a Price/Forward Earnings ratio of 15.16, RH is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 71.90% of the companies listed in the same industry.
RH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.3 | ||
| Fwd PE | 15.16 |
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 | 15.85 |
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 53.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y65.77%
EPS Next 3Y53.48%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
222.83
+5.21 (+2.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.25%
Inst Owner Change-4.55%
Ins Owners18.41%
Ins Owner Change0.15%
Market Cap4.17B
Analysts73.57
Price Target264.57 (18.73%)
Short Float %21.53%
Short Ratio3.05
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)111.43%
Min EPS beat(2)-19.91%
Max EPS beat(2)242.76%
EPS beat(4)2
Avg EPS beat(4)54.64%
Min EPS beat(4)-19.91%
Max EPS beat(4)242.76%
EPS beat(8)3
Avg EPS beat(8)-18.62%
EPS beat(12)6
Avg EPS beat(12)-10.72%
EPS beat(16)9
Avg EPS beat(16)-3.78%
Revenue beat(2)0
Avg Revenue beat(2)-4.16%
Min Revenue beat(2)-4.92%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.31%
Revenue beat(8)0
Avg Revenue beat(8)-3.58%
Revenue beat(12)1
Avg Revenue beat(12)-2.8%
Revenue beat(16)2
Avg Revenue beat(16)-2.58%
PT rev (1m)-0.5%
PT rev (3m)-1.84%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)3.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.3 | ||
| Fwd PE | 15.16 | ||
| P/S | 1.28 | ||
| P/FCF | N/A | ||
| P/OCF | 87.67 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.85 |
EPS(TTM)7.12
EY3.2%
EPS(NY)14.7
Fwd EY6.6%
FCF(TTM)-9.05
FCFYN/A
OCF(TTM)2.54
OCFY1.14%
SpS174.47
BVpS-5.91
TBVpS-17.66
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | N/A | ||
| ROCE | 8.71% | ||
| ROIC | 7.74% | ||
| ROICexc | 7.84% | ||
| ROICexgc | 8.34% | ||
| OM | 9.91% | ||
| PM (TTM) | 2.57% | ||
| GM | 44.5% | ||
| 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 | 6.96 | ||
| Cap/Depr | 161.29% | ||
| Cap/Sales | 6.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 10.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 1.38 |
F-Score4
WACC10.26%
ROIC/WACC0.75
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 Y101.69%
EPS Next 2Y65.77%
EPS Next 3Y53.48%
EPS Next 5Y47.52%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
Revenue Next Year9.07%
Revenue Next 2Y9.94%
Revenue Next 3Y8.87%
Revenue Next 5Y8.75%
EBIT growth 1Y3.6%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year80.79%
EBIT Next 3Y36.87%
EBIT Next 5Y26.15%
FCF growth 1Y-196.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-86.57%
OCF growth 3Y-70.44%
OCF growth 5Y-44.98%