RH (RH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RH - US74967X1037 - Common Stock
219.44 USD
-13.46 (-5.78%)
219.44 USD
0 (0%)
Taking everything into account, RH scores 4 out of 10 in our fundamental rating. RH was compared to 121 industry peers in the Specialty Retail industry. While RH is still in line with the averages on profitability rating, there are concerns on its financial health. RH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year RH was profitable.
- RH had a positive operating cash flow in the past year.
- Each year in the past 5 years RH has been profitable.
- RH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RH has a Return On Assets (2.29%) which is comparable to the rest of the industry.
- 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 68.59% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RH is in line with the industry average of 12.37%.
| Industry Rank | Sector 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%
1.3 Margins
- RH has a better Profit Margin (3.22%) than 69.42% of its industry peers.
- In the last couple of years the Profit Margin of RH has declined.
- The Operating Margin of RH (10.49%) is better than 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 44.50%, RH is doing good in the industry, outperforming 71.07% of the companies in the same industry.
- RH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RH is creating some value.
- RH has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for RH has been reduced compared to 5 years ago.
- RH has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.43, we must say that RH is in the distress zone and has some risk of bankruptcy.
- RH has a worse Altman-Z score (1.43) than 66.12% 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 in line with its industry peers.
- 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 80.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.8
WACC10.32%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that RH should not have too much problems paying its short term obligations.
- The Current ratio of RH (1.19) is worse than 61.16% of its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 41.43% over the past year.
- Measured over the past years, RH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.46% on average per year.
- RH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.74%.
- RH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.74% yearly.
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 2Y41.7%
EPS Next 3Y39.79%
EPS Next 5Y45.55%
Revenue Next Year8.46%
Revenue Next 2Y8.68%
Revenue Next 3Y8.41%
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.
- 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
- A Price/Earnings ratio of 34.56 indicates a quite expensive valuation of RH.
- RH's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, RH is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 20.43, the valuation of RH can be described as rather expensive.
- RH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 61.98% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of RH to the average of the S&P500 Index (24.29), we can say RH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.56 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
- RH's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.93 | ||
| EV/EBITDA | 15.06 |
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.
- The decent profitability rating of RH may justify a higher PE ratio.
- RH's earnings are expected to grow with 39.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y41.7%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
- No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
219.44
-13.46 (-5.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-11 2025-12-11/amc
Earnings (Next)06-10 2026-06-10
Inst Owners88.19%
Inst Owner Change0.29%
Ins Owners18.46%
Ins Owner Change0.47%
Market Cap4.11B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target200.88 (-8.46%)
Short Float %25.22%
Short Ratio3.54
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)-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)-21.04%
PT rev (3m)-23.17%
EPS NQ rev (1m)-5.56%
EPS NQ rev (3m)-38.9%
EPS NY rev (1m)-2.41%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.56 | ||
| Fwd PE | 20.43 | ||
| P/S | 1.21 | ||
| P/FCF | 32.93 | ||
| P/OCF | 12.19 | ||
| P/B | 1229.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.06 |
EPS(TTM)6.35
EY2.89%
EPS(NY)10.74
Fwd EY4.9%
FCF(TTM)6.66
FCFY3.04%
OCF(TTM)17.99
OCFY8.2%
SpS181.83
BVpS0.18
TBVpS-11.74
PEG (NY)0.95
PEG (5Y)N/A
Graham Number5.05
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.43 |
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 2Y41.7%
EPS Next 3Y39.79%
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 2Y8.68%
Revenue Next 3Y8.41%
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 4 / 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 34.56 and the Price/Book (PB) ratio is 1229.68.