RH (RH) Stock Fundamental Analysis
NYSE:RH - New York Stock Exchange, Inc. - US74967X1037 - Common Stock - Currency: USD
Overall RH gets a fundamental rating of 5 out of 10. We evaluated RH against 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.
RH had a positive operating cash flow in the past year.
RH had positive earnings in each of the past 5 years.
In the past 5 years RH always reported a positive cash flow from operatings.
1.2 Ratios
RH's Return On Assets of 3.07% is in line compared to the rest of the industry. RH outperforms 59.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.54%, RH belongs to the top of the industry, outperforming 81.82% 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 13.07%.
The last Return On Invested Capital (13.54%) for RH is above the 3 year average (10.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | N/A | ||
| ROIC | 13.54% |
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 (2.53%) is better than 64.46% of its industry peers.
In the last couple of years the Profit Margin of RH has declined.
With an excellent Operating Margin value of 10.06%, RH belongs to the best of the industry, outperforming 84.30% of the companies in the same industry.
In the last couple of years the Operating Margin of RH has declined.
RH has a better Gross Margin (44.47%) than 67.77% of its industry peers.
RH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.06% | ||
| PM (TTM) | 2.53% | ||
| GM | 44.47% |
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.
Compared to 1 year ago, RH has an improved debt to assets ratio.
2.2 Solvency
RH has an Altman-Z score of 2.04. This is not the best score and indicates that RH is in the grey zone with still only limited risk for bankruptcy at the moment.
RH has a Altman-Z score (2.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.04 |
ROIC/WACC1.35
WACC10.02%
2.3 Liquidity
RH has a Current Ratio of 1.37. This is a normal value and indicates that RH is financially healthy and should not expect problems in meeting its short term obligations.
RH's Current ratio of 1.37 is in line compared to the rest of the industry. RH outperforms 50.41% of its industry peers.
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 73.55% 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 for RH have decreased strongly by -16.93% in the last year.
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 very strong growth in Revenue. The Revenue has grown by 86.81%.
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%304.1%
Revenue 1Y (TTM)86.81%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%11.97%
3.2 Future
The Earnings Per Share is expected to grow by 48.55% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.04% on average over the next years. This is quite good.
EPS Next Y100.04%
EPS Next 2Y65.23%
EPS Next 3Y53.75%
EPS Next 5Y48.55%
Revenue Next Year9.98%
Revenue Next 2Y10.06%
Revenue Next 3Y9.53%
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
With a Price/Earnings ratio of 38.70, RH can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RH is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.45. RH is valued slightly more expensive when compared to this.
RH is valuated correctly with a Price/Forward Earnings ratio of 14.17.
RH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 68.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, RH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 14.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RH is valued a bit cheaper than 60.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.08 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
RH's earnings are expected to grow with 53.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y65.23%
EPS Next 3Y53.75%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
207.04
+1.24 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.99%
Inst Owner Change5.45%
Ins Owners18.39%
Ins Owner Change-0.01%
Market Cap3.88B
Analysts74.29
Price Target265.15 (28.07%)
Short Float %19.81%
Short Ratio2.2
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)0.38%
PT rev (3m)-44.08%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-17.4%
EPS NY rev (1m)2.54%
EPS NY rev (3m)-20.66%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-5.32%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.7 | ||
| Fwd PE | 14.17 | ||
| P/S | 0.69 | ||
| P/FCF | N/A | ||
| P/OCF | 81.46 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.08 |
EPS(TTM)5.35
EY2.58%
EPS(NY)14.61
Fwd EY7.05%
FCF(TTM)-9.05
FCFYN/A
OCF(TTM)2.54
OCFY1.23%
SpS300.91
BVpS-5.91
TBVpS-17.66
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | N/A | ||
| ROCE | 15.25% | ||
| ROIC | 13.54% | ||
| ROICexc | 13.71% | ||
| ROICexgc | 14.59% | ||
| OM | 10.06% | ||
| PM (TTM) | 2.53% | ||
| GM | 44.47% | ||
| 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-Score6
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.55 | ||
| Cap/Depr | 161.29% | ||
| Cap/Sales | 3.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 6.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 2.04 |
F-Score6
WACC10.02%
ROIC/WACC1.35
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%304.1%
EPS Next Y100.04%
EPS Next 2Y65.23%
EPS Next 3Y53.75%
EPS Next 5Y48.55%
Revenue 1Y (TTM)86.81%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%11.97%
Revenue Next Year9.98%
Revenue Next 2Y10.06%
Revenue Next 3Y9.53%
Revenue Next 5Y9.04%
EBIT growth 1Y81.3%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year79.99%
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%