RH (RH) Stock Fundamental Analysis

NYSE:RH • US74967X1037

165.71 USD
-20.9 (-11.2%)
At close: Feb 27, 2026
165.809 USD
+0.1 (+0.06%)
After Hours: 2/27/2026, 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 123 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year RH was profitable.
  • In the past year RH had a positive cash flow from operations.
  • Each year in the past 5 years RH has 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 has a Return On Assets (2.29%) which is comparable to the rest of the 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 72.36% of its industry peers.
  • RH had an Average Return On Invested Capital over the past 3 years of 10.73%. This is below the industry average of 13.61%.
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

  • With a decent Profit Margin value of 3.22%, RH is doing good in the industry, outperforming 69.92% of the companies in the same industry.
  • In the last couple of years the Profit Margin of RH has declined.
  • The Operating Margin of RH (10.49%) is better than 84.55% of its industry peers.
  • RH's Operating Margin has declined in the last couple of years.
  • RH's Gross Margin of 44.50% is fine compared to the rest of the industry. RH outperforms 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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

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.
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

  • RH has an Altman-Z score of 1.27. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of RH (1.27) is worse than 65.85% 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 of 25.66. This is comparable to the rest of the industry: RH outperforms 46.34% of its industry peers.
  • RH has a Debt/Equity ratio of 944.39. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 944.39, RH is not doing good in the industry: 79.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 944.39
Debt/FCF 25.66
Altman-Z 1.27
ROIC/WACC0.81
WACC10.21%
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.
  • RH has a Current ratio of 1.19. This is in the lower half of the industry: RH underperforms 60.16% 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.
  • RH has a worse Quick ratio (0.26) than 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 41.43% over the past year.
  • The earnings per share for RH have been decreasing by -14.46% on average. This is quite bad
  • 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

  • RH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.55% yearly.
  • 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 2Y41.79%
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

  • 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.
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

6

4. Valuation

4.1 Price/Earnings Ratio

  • RH is valuated quite expensively with a Price/Earnings ratio of 26.10.
  • 66.67% of the companies in the same industry are more expensive than RH, based on the Price/Earnings ratio.
  • RH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 15.41, which indicates a correct valuation of RH.
  • RH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 73.17% of the companies in the same industry.
  • RH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
Industry RankSector Rank
PE 26.1
Fwd PE 15.41
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 65.04% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 24.91
EV/EBITDA 12.55
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.
  • 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 40.10% in the coming years.
PEG (NY)0.72
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

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

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Find the best dividend stocksShow peers with best dividend

RH

NYSE:RH (2/27/2026, 8:04:00 PM)

After market: 165.809 +0.1 (+0.06%)

165.71

-20.9 (-11.2%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-11
Earnings (Next)06-10
Inst Owners88.19%
Inst Owner Change9.61%
Ins Owners18.46%
Ins Owner Change0.64%
Market Cap3.11B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target211.4 (27.57%)
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 26.1
Fwd PE 15.41
P/S 0.91
P/FCF 24.91
P/OCF 9.22
P/B 930.08
P/tB N/A
EV/EBITDA 12.55
EPS(TTM)6.35
EY3.83%
EPS(NY)10.76
Fwd EY6.49%
FCF(TTM)6.65
FCFY4.02%
OCF(TTM)17.97
OCFY10.84%
SpS181.54
BVpS0.18
TBVpS-11.72
PEG (NY)0.72
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 1.27
F-Score7
WACC10.21%
ROIC/WACC0.81
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 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 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 26.1 and the Price/Book (PB) ratio is 930.08.