RH (RH) Fundamental Analysis & Valuation

NYSE:RH • US74967X1037

Current stock price

131.87 USD
-0.09 (-0.07%)
Last:

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

  • RH had positive earnings in the past year.
  • In the past year RH had a positive cash flow from operations.
  • In the past 5 years RH has always been profitable.
  • RH had a positive operating cash flow in each of the past 5 years.
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 2026 0 200M -200M 400M 600M 800M

1.2 Ratios

  • RH's Return On Assets of 2.58% is in line compared to the rest of the industry. RH outperforms 56.91% of its industry peers.
  • RH has a Return On Equity of 205.92%. This is amongst the best in the industry. RH outperforms 100.00% of its industry peers.
  • RH has a Return On Invested Capital of 8.18%. This is in the better half of the industry: RH outperforms 70.73% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for RH is below the industry average of 13.24%.
Industry RankSector 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%
RH Yearly ROA, ROE, ROICRH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500 1K

1.3 Margins

  • Looking at the Profit Margin, with a value of 3.63%, 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 has a better Operating Margin (11.16%) than 85.37% of its industry peers.
  • In the last couple of years the Operating Margin of RH has declined.
  • With a decent Gross Margin value of 44.07%, RH is doing good in the industry, outperforming 70.73% of the companies in the same industry.
  • RH's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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 2026 0 10 20 30 40 50

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2

2. RH Health Analysis

2.1 Basic Checks

  • RH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 2026 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 2026 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 1.22, we must say that RH is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.22, RH is doing worse than 69.11% of the companies in the same industry.
  • The Debt to FCF ratio of RH is 12.65, which is on the high side as it means it would take RH, 12.65 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of RH (12.65) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 51.28 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 51.28, RH is doing worse than 82.93% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 51.28
Debt/FCF 12.65
Altman-Z 1.22
ROIC/WACC1.07
WACC7.67%
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 2026 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's Current ratio of 1.19 is on the low side compared to the rest of the industry. RH is outperformed by 61.79% of its industry peers.
  • A Quick Ratio of 0.31 indicates that RH may have some problems paying its short term obligations.
  • RH's Quick ratio of 0.31 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 0.31
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 2026 1B 2B 3B

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6

3. RH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 17.76% 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 -18.42% on average per year.
  • The Revenue has grown by 8.14% in the past year. This is quite good.
  • Measured over the past years, RH shows a small growth in Revenue. The Revenue has been growing by 3.84% on average per year.
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.
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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5

4. RH Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 20.93, RH is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 66.67% of the companies listed in the same industry.
  • RH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.77.
  • The Price/Forward Earnings ratio is 20.01, which indicates a rather expensive current valuation of RH.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of RH is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 21.75. RH is around the same levels.
Industry RankSector Rank
PE 20.93
Fwd PE 20.01
RH Price Earnings VS Forward Price EarningsRH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • RH's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, RH is valued cheaply inside the industry as 81.30% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.96
EV/EBITDA 10.51
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 29.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.52
PEG (5Y)N/A
EPS Next 2Y28.03%
EPS Next 3Y29.61%

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

0

5. RH Dividend Analysis

5.1 Amount

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

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RH Fundamentals: All Metrics, Ratios and Statistics

RH

NYSE:RH (5/1/2026, 2:30:40 PM)

131.87

-0.09 (-0.07%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Industry Strength10.56
Industry Growth58.39
Earnings (Last)04-01
Earnings (Next)06-10
Inst Owners94.5%
Inst Owner Change0.08%
Ins Owners18.44%
Ins Owner Change0.57%
Market Cap2.48B
Revenue(TTM)3.44B
Net Income(TTM)124.79M
Analysts70
Price Target154.34 (17.04%)
Short Float %35.59%
Short Ratio3.87
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)-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)-26.99%
PT rev (3m)-23.17%
EPS NQ rev (1m)-556.33%
EPS NQ rev (3m)-488.48%
EPS NY rev (1m)-38.66%
EPS NY rev (3m)-38.64%
Revenue NQ rev (1m)-10.21%
Revenue NQ rev (3m)-10.32%
Revenue NY rev (1m)-4.31%
Revenue NY rev (3m)-4.29%
Valuation
Industry RankSector Rank
PE 20.93
Fwd PE 20.01
P/S 0.72
P/FCF 9.96
P/OCF 5.49
P/B 40.98
P/tB N/A
EV/EBITDA 10.51
EPS(TTM)6.3
EY4.78%
EPS(NY)6.59
Fwd EY5%
FCF(TTM)13.24
FCFY10.04%
OCF(TTM)24.02
OCFY18.21%
SpS182.66
BVpS3.22
TBVpS-8.68
PEG (NY)4.52
PEG (5Y)N/A
Graham Number21.3586 (-83.8%)
Profitability
Industry RankSector 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 RankSector 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 1.22
F-Score6
WACC7.67%
ROIC/WACC1.07
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 4 / 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.