RH (RH) Stock Fundamental Analysis

NYSE:RH • US74967X1037

212.41 USD
+3.69 (+1.77%)
At close: Feb 18, 2026
212.41 USD
0 (0%)
After Hours: 2/18/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

RH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

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.
  • 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.
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

  • With a Return On Assets value of 2.29%, RH perfoms like the industry average, outperforming 56.20% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 3285.39%, RH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • RH's Return On Invested Capital of 8.26% is fine compared to the rest of the industry. RH outperforms 70.25% of its industry peers.
  • 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 12.08%.
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

  • RH's Profit Margin of 3.22% is fine compared to the rest of the industry. RH outperforms 69.42% of its industry peers.
  • In the last couple of years the Profit Margin of RH has declined.
  • With an excellent Operating Margin value of 10.49%, 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's Gross Margin of 44.50% is fine compared to the rest of the industry. RH outperforms 70.25% of its industry peers.
  • RH's Gross Margin has been stable in the last couple of years.
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. 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.
  • 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.
  • RH has a better debt/assets ratio than last year.
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 1.37, we must say that RH is in the distress zone and has some risk of bankruptcy.
  • RH has a worse Altman-Z score (1.37) than 65.29% of its industry peers.
  • RH has a debt to FCF ratio of 25.66. This is a negative value and a sign of low solvency as RH would need 25.66 years to pay back of all of its debts.
  • RH has a Debt to FCF ratio of 25.66. This is comparable to the rest of the industry: RH outperforms 45.45% of its industry peers.
  • A Debt/Equity ratio of 944.39 is on the high side and indicates that RH has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 944.39, RH is doing worse than 80.99% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 944.39
Debt/FCF 25.66
Altman-Z 1.37
ROIC/WACC0.8
WACC10.32%
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.
  • With a Current ratio value of 1.19, RH is not doing good in the industry: 61.16% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.26 indicates that RH may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.26, RH is not doing good in the industry: 80.17% of the companies in the same industry are doing better.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • RH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.43%, which is quite impressive.
  • 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.74%.
  • 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

  • Based on estimates for the next years, RH will show a very strong growth in Earnings Per Share. The EPS will grow by 45.55% on average per year.
  • Based on estimates for the next years, RH will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
EPS Next Y36.4%
EPS Next 2Y41.79%
EPS Next 3Y40.1%
EPS Next 5Y45.55%
Revenue Next Year8.46%
Revenue Next 2Y8.69%
Revenue Next 3Y8.43%
Revenue Next 5Y8.19%

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.
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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • RH is valuated quite expensively with a Price/Earnings ratio of 33.45.
  • The rest of the industry has a similar Price/Earnings ratio as RH.
  • RH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.27.
  • RH is valuated rather expensively with a Price/Forward Earnings ratio of 19.75.
  • Based on the Price/Forward Earnings ratio, RH is valued a bit cheaper than the industry average as 64.46% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.16, RH is valued a bit cheaper.
Industry RankSector Rank
PE 33.45
Fwd PE 19.75
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as RH.
  • RH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RH is cheaper than 60.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 31.92
EV/EBITDA 14.16
RH Per share dataRH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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 has a very decent profitability rating, which may justify a higher PE ratio.
  • RH's earnings are expected to grow with 40.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y41.79%
EPS Next 3Y40.1%

More info and screens

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

0

5. Dividend

5.1 Amount

  • No dividends for RH!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

RH

NYSE:RH (2/18/2026, 8:04:00 PM)

After market: 212.41 0 (0%)

212.41

+3.69 (+1.77%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-11
Earnings (Next)06-10
Inst Owners88.19%
Inst Owner Change0.76%
Ins Owners18.46%
Ins Owner Change0.64%
Market Cap3.99B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target211.4 (-0.48%)
Short Float %21.22%
Short Ratio3.07
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)5.24%
PT rev (3m)-16.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
Industry RankSector Rank
PE 33.45
Fwd PE 19.75
P/S 1.17
P/FCF 31.92
P/OCF 11.82
P/B 1192.19
P/tB N/A
EV/EBITDA 14.16
EPS(TTM)6.35
EY2.99%
EPS(NY)10.76
Fwd EY5.06%
FCF(TTM)6.65
FCFY3.13%
OCF(TTM)17.97
OCFY8.46%
SpS181.54
BVpS0.18
TBVpS-11.72
PEG (NY)0.92
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 1.37
F-Score7
WACC10.32%
ROIC/WACC0.8
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 2Y41.79%
EPS Next 3Y40.1%
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 2Y8.69%
Revenue Next 3Y8.43%
Revenue Next 5Y8.19%
EBIT growth 1Y16.26%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year55.61%
EBIT Next 3Y25.79%
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 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.


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 33.45 and the Price/Book (PB) ratio is 1192.19.