RH (RH) Fundamental Analysis & Valuation
NYSE:RH • US74967X1037
Current stock price
129.97 USD
-1.99 (-1.51%)
At close:
130.5 USD
+0.53 (+0.41%)
After Hours:
This RH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RH Profitability Analysis
1.1 Basic Checks
- RH had positive earnings in the past year.
- In the past year RH had a positive cash flow from operations.
- Each year in the past 5 years RH has been profitable.
- In the past 5 years RH always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.58%, RH is in line with its industry, outperforming 56.91% of the companies in the same industry.
- RH's Return On Equity of 205.92% is amongst the best of the industry. RH outperforms 100.00% of its industry peers.
- RH's Return On Invested Capital of 8.18% is fine compared to the rest of the industry. RH outperforms 70.73% of its industry peers.
- RH had an Average Return On Invested Capital over the past 3 years of 8.28%. This is below the industry average of 13.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 205.92% | ||
| ROIC | 8.18% |
ROA(3y)2.42%
ROA(5y)5.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.28%
ROIC(5y)11.11%
1.3 Margins
- RH's Profit Margin of 3.63% is fine compared to the rest of the industry. RH outperforms 69.11% of its industry peers.
- RH's Profit Margin has declined in the last couple of years.
- RH's Operating Margin of 11.16% is amongst the best of the industry. RH outperforms 85.37% 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 44.07%, RH is in the better half of the industry, outperforming 70.73% 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 | 11.16% | ||
| PM (TTM) | 3.63% | ||
| GM | 44.07% |
OM growth 3Y-17.64%
OM growth 5Y-7.4%
PM growth 3Y-37.31%
PM growth 5Y-17.58%
GM growth 3Y-4.42%
GM growth 5Y-1.08%
2. RH Health Analysis
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.
- The number of shares outstanding for RH has been increased compared to 1 year ago.
- Compared to 5 years ago, RH has less shares outstanding
- Compared to 1 year ago, RH has an improved debt to assets ratio.
2.2 Solvency
- RH has an Altman-Z score of 1.21. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
- RH has a worse Altman-Z score (1.21) than 69.92% of its industry peers.
- RH has a debt to FCF ratio of 12.65. This is a negative value and a sign of low solvency as RH would need 12.65 years to pay back of all of its debts.
- RH has a Debt to FCF ratio (12.65) which is comparable to the rest of the industry.
- RH has a Debt/Equity ratio of 51.28. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 51.28, RH is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 51.28 | ||
| Debt/FCF | 12.65 | ||
| Altman-Z | 1.21 |
ROIC/WACC1.08
WACC7.54%
2.3 Liquidity
- RH has a Current Ratio of 1.19. 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 1.19. This is in the lower half of the industry: RH underperforms 61.79% of its industry peers.
- RH has a Quick Ratio of 1.19. This is a bad value and indicates that RH is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.31, RH is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.31 |
3. RH Growth Analysis
3.1 Past
- RH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.76%, which is quite good.
- The earnings per share for RH have been decreasing by -18.42% on average. This is quite bad
- The Revenue has grown by 8.14% in the past year. This is quite good.
- RH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.84% yearly.
EPS 1Y (TTM)17.76%
EPS 3Y-36.33%
EPS 5Y-18.42%
EPS Q2Q%-3.16%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y-1.42%
Revenue growth 5Y3.84%
Sales Q2Q%3.72%
3.2 Future
- RH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.96% yearly.
- RH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.15% yearly.
EPS Next Y4.63%
EPS Next 2Y28.03%
EPS Next 3Y29.61%
EPS Next 5Y41.96%
Revenue Next Year4.4%
Revenue Next 2Y6.89%
Revenue Next 3Y7.19%
Revenue Next 5Y8.15%
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. RH Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 20.63, RH is valued on the expensive side.
- Based on the Price/Earnings ratio, RH is valued a bit cheaper than 67.48% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.51. RH is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 19.72, the valuation of RH can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 60.98% of the companies listed in the same industry.
- RH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 19.72 |
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.
- Based on the Price/Free Cash Flow ratio, RH is valued cheaper than 81.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 10.44 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of RH may justify a higher PE ratio.
- A more expensive valuation may be justified as RH's earnings are expected to grow with 29.61% in the coming years.
PEG (NY)4.46
PEG (5Y)N/A
EPS Next 2Y28.03%
EPS Next 3Y29.61%
5. RH Dividend Analysis
5.1 Amount
- No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
RH Fundamentals: All Metrics, Ratios and Statistics
129.97
-1.99 (-1.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Industry Strength11.8
Industry Growth38.51
Earnings (Last)04-01 2026-04-01/bmo
Earnings (Next)06-10 2026-06-10
Inst Owners94.5%
Inst Owner Change0.26%
Ins Owners18.44%
Ins Owner Change0.57%
Market Cap2.45B
Revenue(TTM)3.44B
Net Income(TTM)124.79M
Analysts70
Price Target154.34 (18.75%)
Short Float %35.59%
Short Ratio3.87
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)0
Avg EPS beat(2)-28.09%
Min EPS beat(2)-32.99%
Max EPS beat(2)-23.18%
EPS beat(4)1
Avg EPS beat(4)43.86%
Min EPS beat(4)-32.99%
Max EPS beat(4)242.76%
EPS beat(8)2
Avg EPS beat(8)-8.06%
EPS beat(12)4
Avg EPS beat(12)-17.81%
EPS beat(16)7
Avg EPS beat(16)-9.76%
Revenue beat(2)0
Avg Revenue beat(2)-4.39%
Min Revenue beat(2)-5.88%
Max Revenue beat(2)-2.9%
Revenue beat(4)0
Avg Revenue beat(4)-3.92%
Min Revenue beat(4)-5.88%
Max Revenue beat(4)-2.9%
Revenue beat(8)0
Avg Revenue beat(8)-3.56%
Revenue beat(12)0
Avg Revenue beat(12)-3.51%
Revenue beat(16)2
Avg Revenue beat(16)-2.84%
PT rev (1m)-25.8%
PT rev (3m)-23.17%
EPS NQ rev (1m)-21.46%
EPS NQ rev (3m)-488.9%
EPS NY rev (1m)-38.66%
EPS NY rev (3m)-38.64%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)-10.27%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-4.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 19.72 | ||
| P/S | 0.71 | ||
| P/FCF | 9.82 | ||
| P/OCF | 5.41 | ||
| P/B | 40.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.44 |
EPS(TTM)6.3
EY4.85%
EPS(NY)6.59
Fwd EY5.07%
FCF(TTM)13.24
FCFY10.19%
OCF(TTM)24.02
OCFY18.48%
SpS182.66
BVpS3.22
TBVpS-8.68
PEG (NY)4.46
PEG (5Y)N/A
Graham Number21.3586 (-83.57%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.58% | ||
| ROE | 205.92% | ||
| ROCE | 9.83% | ||
| ROIC | 8.18% | ||
| ROICexc | 8.26% | ||
| ROICexgc | 8.77% | ||
| OM | 11.16% | ||
| PM (TTM) | 3.63% | ||
| GM | 44.07% | ||
| FCFM | 7.25% |
ROA(3y)2.42%
ROA(5y)5.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.28%
ROIC(5y)11.11%
ROICexc(3y)8.45%
ROICexc(5y)15.87%
ROICexgc(3y)9.02%
ROICexgc(5y)17.23%
ROCE(3y)9.95%
ROCE(5y)13.36%
ROICexgc growth 3Y-26.5%
ROICexgc growth 5Y-17.78%
ROICexc growth 3Y-26.08%
ROICexc growth 5Y-16.78%
OM growth 3Y-17.64%
OM growth 5Y-7.4%
PM growth 3Y-37.31%
PM growth 5Y-17.58%
GM growth 3Y-4.42%
GM growth 5Y-1.08%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 51.28 | ||
| Debt/FCF | 12.65 | ||
| Debt/EBITDA | 5.84 | ||
| Cap/Depr | 136.66% | ||
| Cap/Sales | 5.9% | ||
| Interest Coverage | 1.77 | ||
| Cash Conversion | 84.95% | ||
| Profit Quality | 199.78% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 1.21 |
F-Score6
WACC7.54%
ROIC/WACC1.08
Cap/Depr(3y)180.1%
Cap/Depr(5y)178.66%
Cap/Sales(3y)7.35%
Cap/Sales(5y)6.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.76%
EPS 3Y-36.33%
EPS 5Y-18.42%
EPS Q2Q%-3.16%
EPS Next Y4.63%
EPS Next 2Y28.03%
EPS Next 3Y29.61%
EPS Next 5Y41.96%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y-1.42%
Revenue growth 5Y3.84%
Sales Q2Q%3.72%
Revenue Next Year4.4%
Revenue Next 2Y6.89%
Revenue Next 3Y7.19%
Revenue Next 5Y8.15%
EBIT growth 1Y22.57%
EBIT growth 3Y-18.81%
EBIT growth 5Y-3.84%
EBIT Next Year40.36%
EBIT Next 3Y25.75%
EBIT Next 5Y25.55%
FCF growth 1Y216.66%
FCF growth 3Y2.71%
FCF growth 5Y-8.55%
OCF growth 1Y2545.46%
OCF growth 3Y3.86%
OCF growth 5Y-2.02%
RH / RH Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for RH?
ChartMill assigns a fundamental rating of 4 / 10 to RH.
Can you provide the valuation status for RH?
ChartMill assigns a valuation rating of 5 / 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 6 / 10.
What is the financial health of RH (RH) stock?
The financial health rating of RH (RH) is 2 / 10.