RH (RH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RH - US74967X1037 - Common Stock
162.01 USD
+8.7 (+5.67%)
161.837 USD
-0.17 (-0.11%)
We assign a fundamental rating of 4 out of 10 to RH. 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.
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
RH's Return On Assets of 2.27% is in line compared to the rest of the industry. RH outperforms 57.02% of its industry peers.
With a decent Return On Invested Capital value of 8.46%, RH is doing good in the industry, outperforming 70.25% 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 12.26%.
| 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 better Profit Margin (3.20%) than 70.25% of its industry peers.
In the last couple of years the Profit Margin of RH has declined.
RH has a Operating Margin of 10.68%. This is amongst the best in the industry. RH outperforms 84.30% of its industry peers.
RH's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 44.61%, RH is doing good in the industry, outperforming 71.07% 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 | 10.68% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RH is still creating some value.
RH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RH has less shares outstanding
The debt/assets ratio for RH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that RH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.25, RH is not doing good in the industry: 66.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACC0.82
WACC10.37%
2.3 Liquidity
A Current Ratio of 1.26 indicates that RH should not have too much problems paying its short term obligations.
RH's Current ratio of 1.26 is in line compared to the rest of the industry. RH outperforms 47.11% of its industry peers.
RH has a Quick Ratio of 1.26. 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 has a Quick ratio of 0.26. This is amonst the worse of the industry: RH underperforms 81.82% 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 41.43% 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.
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)41.43%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%-31.05%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.88%
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
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 25.51, the valuation of RH can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 67.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.54, RH is valued at the same level.
A Price/Forward Earnings ratio of 12.19 indicates a correct valuation of RH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 79.34% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. RH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 12.19 |
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 | 12.27 |
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 50.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y57.63%
EPS Next 3Y50.61%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
162.01
+8.7 (+5.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.44%
Inst Owner Change-0.61%
Ins Owners18.49%
Ins Owner Change0.6%
Market Cap3.04B
Revenue(TTM)3.18B
Net Income(TTM)106.83M
Analysts72.86
Price Target254.39 (57.02%)
Short Float %23.34%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)-4.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-47.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 12.19 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 17.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.27 |
EPS(TTM)6.35
EY3.92%
EPS(NY)13.29
Fwd EY8.21%
FCF(TTM)-2.88
FCFYN/A
OCF(TTM)9.29
OCFY5.73%
SpS177.99
BVpS-2.18
TBVpS-14.1
PEG (NY)0.35
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 | 1.25 |
F-Score8
WACC10.37%
ROIC/WACC0.82
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)41.43%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%-31.05%
EPS Next Y73.57%
EPS Next 2Y57.63%
EPS Next 3Y50.61%
EPS Next 5Y47.65%
Revenue 1Y (TTM)5.01%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.88%
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 Year71.94%
EBIT Next 3Y31.24%
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 4 / 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 25.51 and the Price/Book (PB) ratio is -74.27.