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 122 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
RH had positive earnings in each of the past 5 years.
RH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RH (3.07%) is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 13.54%, RH belongs to the best of the industry, outperforming 81.97% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RH is in line with the industry average of 12.03%.
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
RH's Profit Margin of 2.53% is fine compared to the rest of the industry. RH outperforms 63.93% of its industry peers.
In the last couple of years the Profit Margin of RH has declined.
RH has a Operating Margin of 10.06%. This is amongst the best in the industry. RH outperforms 84.43% of its industry peers.
In the last couple of years the Operating Margin of RH has declined.
Looking at the Gross Margin, with a value of 44.47%, RH is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
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 | 10.06% | ||
| 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
RH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RH has been increased compared to 1 year ago.
RH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.06 indicates that RH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.06, RH is in line with its industry, outperforming 47.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.06 |
ROIC/WACC1.34
WACC10.1%
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 has a Current ratio of 1.37. This is comparable to the rest of the industry: RH outperforms 50.82% of its industry peers.
A Quick Ratio of 0.29 indicates that RH may have some problems paying its short term obligations.
RH has a Quick ratio of 0.29. This is in the lower half of the industry: RH underperforms 73.77% 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 53.52% over the past year.
The earnings per share for RH have been decreasing by -14.46% on average. This is quite bad
RH shows a strong growth in Revenue. In the last year, the Revenue has grown by 86.81%.
The Revenue has been growing slightly by 3.74% on average over the past years.
EPS 1Y (TTM)53.52%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%132.5%
Revenue 1Y (TTM)86.81%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%11.97%
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.
Based on estimates for the next years, RH will show a quite strong growth in Revenue. The Revenue will grow by 9.04% on average per year.
EPS Next Y102.9%
EPS Next 2Y66.63%
EPS Next 3Y53.03%
EPS Next 5Y48.55%
Revenue Next Year9.92%
Revenue Next 2Y10.05%
Revenue Next 3Y9.49%
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.
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 36.36, the valuation of RH can be described as expensive.
RH's Price/Earnings ratio is in line with the industry average.
RH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.05.
Based on the Price/Forward Earnings ratio of 14.39, the valuation of RH can be described as correct.
67.21% of the companies in the same industry are more expensive than RH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.67, RH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 14.39 |
4.2 Price Multiples
RH's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.26 |
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.
A more expensive valuation may be justified as RH's earnings are expected to grow with 53.03% in the coming years.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y66.63%
EPS Next 3Y53.03%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
213.8
+1.06 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.99%
Inst Owner Change-0.18%
Ins Owners18.39%
Ins Owner Change0.15%
Market Cap4.00B
Analysts73.57
Price Target263.87 (23.42%)
Short Float %22.21%
Short Ratio2.57
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)-0.48%
PT rev (3m)-1.92%
EPS NQ rev (1m)-3.38%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)1.43%
EPS NY rev (3m)3.48%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.36 | ||
| Fwd PE | 14.39 | ||
| P/S | 0.71 | ||
| P/FCF | N/A | ||
| P/OCF | 84.12 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.26 |
EPS(TTM)5.88
EY2.75%
EPS(NY)14.85
Fwd EY6.95%
FCF(TTM)-9.05
FCFYN/A
OCF(TTM)2.54
OCFY1.19%
SpS300.91
BVpS-5.91
TBVpS-17.66
PEG (NY)0.35
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 | 2.06 |
F-Score6
WACC10.1%
ROIC/WACC1.34
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)53.52%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%132.5%
EPS Next Y102.9%
EPS Next 2Y66.63%
EPS Next 3Y53.03%
EPS Next 5Y48.55%
Revenue 1Y (TTM)86.81%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%11.97%
Revenue Next Year9.92%
Revenue Next 2Y10.05%
Revenue Next 3Y9.49%
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%