RH (RH) Fundamental Analysis & Valuation

NYSE:RH • US74967X1037

Current stock price

130.85 USD
-1.18 (-0.89%)
At close:
129 USD
-1.85 (-1.41%)
After Hours:

This RH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. RH Profitability Analysis

1.1 Basic Checks

  • In the past year RH was profitable.
  • In the past year RH had a positive cash flow from operations.
  • In the past 5 years RH has always been profitable.
  • Each year in the past 5 years RH had a positive operating cash flow.
RH Yearly Net Income VS EBIT VS OCF VS FCFRH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M 800M

1.2 Ratios

  • RH's Return On Assets of 2.29% is in line compared to the rest of the industry. RH outperforms 57.72% of its industry peers.
  • RH's Return On Equity of 3285.39% is amongst the best of the industry. RH outperforms 100.00% of its industry peers.
  • With a decent Return On Invested Capital value of 8.26%, RH is doing good in the industry, outperforming 74.80% 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 13.27%.
Industry RankSector Rank
ROA 2.29%
ROE 3285.39%
ROIC 8.26%
ROA(3y)4.87%
ROA(5y)7.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)10.73%
ROIC(5y)14.31%
RH Yearly ROA, ROE, ROICRH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 1K

1.3 Margins

  • Looking at the Profit Margin, with a value of 3.22%, RH is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
  • In the last couple of years the Profit Margin of RH has declined.
  • RH's Operating Margin of 10.49% is amongst the best of the industry. RH outperforms 85.37% of its industry peers.
  • RH's Operating Margin has declined in the last couple of years.
  • The Gross Margin of RH (44.50%) is better than 70.73% of its industry peers.
  • In the last couple of years the Gross Margin of RH has remained more or less at the same level.
Industry RankSector Rank
OM 10.49%
PM (TTM) 3.22%
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%
RH Yearly Profit, Operating, Gross MarginsRH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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2

2. RH Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RH is creating some value.
  • Compared to 1 year ago, RH has more shares outstanding
  • RH has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, RH has an improved debt to assets ratio.
RH Yearly Shares OutstandingRH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
RH Yearly Total Debt VS Total AssetsRH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 1.19, we must say that RH is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of RH (1.19) is worse than 62.60% of its industry peers.
  • The Debt to FCF ratio of RH is 25.66, which is on the high side as it means it would take RH, 25.66 years of fcf income to pay off all of its debts.
  • RH has a Debt to FCF ratio (25.66) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 944.39 is on the high side and indicates that RH has dependencies on debt financing.
  • RH has a worse Debt to Equity ratio (944.39) than 79.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 944.39
Debt/FCF 25.66
Altman-Z 1.19
ROIC/WACC1.1
WACC7.48%
RH Yearly LT Debt VS Equity VS FCFRH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that RH should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.19, RH is doing worse than 60.16% of the companies in the same industry.
  • A Quick Ratio of 0.26 indicates that RH may have some problems paying its short term obligations.
  • RH's Quick ratio of 0.26 is on the low side compared to the rest of the industry. RH is outperformed by 78.05% of its industry peers.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.26
RH Yearly Current Assets VS Current LiabilitesRH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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6

3. RH Growth Analysis

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.
  • The Revenue has grown by 9.74% in the past year. This is quite good.
  • The Revenue has been growing slightly by 3.74% on average over the past years.
EPS 1Y (TTM)41.43%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%-31.05%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.88%

3.2 Future

  • The Earnings Per Share is expected to grow by 45.55% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y36.4%
EPS Next 2Y41.72%
EPS Next 3Y40.05%
EPS Next 5Y45.55%
Revenue Next Year8.46%
Revenue Next 2Y8.71%
Revenue Next 3Y8.5%
Revenue Next 5Y8.19%

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.
RH Yearly Revenue VS EstimatesRH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B
RH Yearly EPS VS EstimatesRH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20 40 60

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6

4. RH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.61, which indicates a rather expensive current valuation of RH.
  • RH's Price/Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 68.29% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of RH to the average of the S&P500 Index (24.89), we can say RH is valued inline with the index average.
  • The Price/Forward Earnings ratio is 12.18, which 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 76.42% of the companies listed in the same industry.
  • RH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.61
Fwd PE 12.18
RH Price Earnings VS Forward Price EarningsRH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • RH's Enterprise Value to EBITDA is on the same level as the industry average.
  • RH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RH is cheaper than 65.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.67
EV/EBITDA 11.28
RH Per share dataRH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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 40.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y41.72%
EPS Next 3Y40.05%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RH Dividend Analysis

5.1 Amount

  • RH does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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RH Fundamentals: All Metrics, Ratios and Statistics

RH

NYSE:RH (3/27/2026, 8:04:00 PM)

After market: 129 -1.85 (-1.41%)

130.85

-1.18 (-0.89%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-11
Earnings (Next)06-10
Inst Owners94.65%
Inst Owner Change9.63%
Ins Owners18.49%
Ins Owner Change0.17%
Market Cap2.46B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target208.02 (58.98%)
Short Float %24.94%
Short Ratio3.51
Dividend
Industry RankSector 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)-17.17%
Min EPS beat(2)-23.18%
Max EPS beat(2)-11.15%
EPS beat(4)1
Avg EPS beat(4)47.13%
Min EPS beat(4)-23.18%
Max EPS beat(4)242.76%
EPS beat(8)2
Avg EPS beat(8)-11.2%
EPS beat(12)4
Avg EPS beat(12)-16.41%
EPS beat(16)7
Avg EPS beat(16)-7.8%
Revenue beat(2)0
Avg Revenue beat(2)-3.2%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-2.9%
Revenue beat(4)0
Avg Revenue beat(4)-3.68%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.9%
Revenue beat(8)0
Avg Revenue beat(8)-3.8%
Revenue beat(12)0
Avg Revenue beat(12)-3.34%
Revenue beat(16)2
Avg Revenue beat(16)-2.84%
PT rev (1m)0%
PT rev (3m)5.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 20.61
Fwd PE 12.18
P/S 0.72
P/FCF 19.67
P/OCF 7.28
P/B 734.42
P/tB N/A
EV/EBITDA 11.28
EPS(TTM)6.35
EY4.85%
EPS(NY)10.75
Fwd EY8.21%
FCF(TTM)6.65
FCFY5.08%
OCF(TTM)17.97
OCFY13.73%
SpS181.54
BVpS0.18
TBVpS-11.72
PEG (NY)0.57
PEG (5Y)N/A
Graham Number5.05
Profitability
Industry RankSector Rank
ROA 2.29%
ROE 3285.39%
ROCE 9.3%
ROIC 8.26%
ROICexc 8.35%
ROICexgc 8.87%
OM 10.49%
PM (TTM) 3.22%
GM 44.5%
FCFM 3.67%
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-Score7
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 944.39
Debt/FCF 25.66
Debt/EBITDA 6.32
Cap/Depr 149.24%
Cap/Sales 6.23%
Interest Coverage 250
Cash Conversion 67.48%
Profit Quality 113.67%
Current Ratio 1.19
Quick Ratio 0.26
Altman-Z 1.19
F-Score7
WACC7.48%
ROIC/WACC1.1
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 Y36.4%
EPS Next 2Y41.72%
EPS Next 3Y40.05%
EPS Next 5Y45.55%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.88%
Revenue Next Year8.46%
Revenue Next 2Y8.71%
Revenue Next 3Y8.5%
Revenue Next 5Y8.19%
EBIT growth 1Y16.26%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year56.62%
EBIT Next 3Y26.31%
EBIT Next 5Y26.15%
FCF growth 1Y-33.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.11%
OCF growth 3Y-70.44%
OCF growth 5Y-44.98%

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 6 / 10 to RH (RH). This can be considered as Fairly Valued.


Can you provide the profitability details for RH?

RH (RH) has a profitability rating of 6 / 10.


What is the valuation of RH based on its PE and PB ratios?

The Price/Earnings (PE) ratio for RH (RH) is 20.61 and the Price/Book (PB) ratio is 734.42.