RH (RH) Stock Fundamental Analysis
NYSE:RH - New York Stock Exchange, Inc. - US74967X1037 - Common Stock - Currency: USD
RH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 122 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 is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
In the past 5 years RH always reported a positive cash flow from operatings.
1.2 Ratios
RH has a Return On Assets of 3.07%. This is comparable to the rest of the industry: RH outperforms 59.02% of its industry peers.
RH has a Return On Invested Capital of 13.54%. This is amongst the best in the industry. RH outperforms 81.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RH is below the industry average of 12.95%.
The last Return On Invested Capital (13.54%) for RH is above the 3 year average (10.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | N/A | ||
| ROIC | 13.54% |
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
The Profit Margin of RH (2.53%) is better than 63.93% of its industry peers.
In the last couple of years the Profit Margin of RH has declined.
RH has a better Operating Margin (10.06%) than 84.43% of its industry peers.
RH's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 44.47%, RH is doing good in the industry, outperforming 67.21% of the companies in the same industry.
In the last couple of years the Gross Margin of RH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.06% | ||
| PM (TTM) | 2.53% | ||
| GM | 44.47% |
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
RH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RH has more shares outstanding
Compared to 5 years ago, RH has less shares outstanding
The debt/assets ratio for RH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.03 indicates that RH is not a great score, but indicates only limited risk for bankruptcy at the moment.
RH has a Altman-Z score (2.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.03 |
ROIC/WACC1.33
WACC10.16%
2.3 Liquidity
RH has a Current Ratio of 1.37. This is a normal value and indicates that RH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RH (1.37) is comparable to the rest of the industry.
A Quick Ratio of 0.29 indicates that RH may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, RH is doing worse than 73.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 53.52% 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 86.81% in the past year. This is a very strong growth!
RH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.74% yearly.
EPS 1Y (TTM)53.52%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%132.5%
Revenue 1Y (TTM)86.81%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%11.97%
3.2 Future
RH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.55% yearly.
Based on estimates for the next years, RH will show a quite strong growth in Revenue. The Revenue will grow by 9.04% on average per year.
EPS Next Y102.9%
EPS Next 2Y66.63%
EPS Next 3Y53.03%
EPS Next 5Y48.55%
Revenue Next Year9.92%
Revenue Next 2Y10.05%
Revenue Next 3Y9.49%
Revenue Next 5Y9.04%
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.
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 31.89 indicates a quite expensive valuation of RH.
Compared to the rest of the industry, the Price/Earnings ratio of RH is on the same level as its industry peers.
RH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
RH is valuated correctly with a Price/Forward Earnings ratio of 12.63.
69.67% of the companies in the same industry are more expensive than RH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, RH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.89 | ||
| Fwd PE | 12.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 60.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.97 |
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 53.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y66.63%
EPS Next 3Y53.03%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
187.54
-15.37 (-7.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.99%
Inst Owner Change-0.03%
Ins Owners18.39%
Ins Owner Change0.14%
Market Cap3.51B
Analysts73.57
Price Target265.15 (41.38%)
Short Float %22.21%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)111.43%
Min EPS beat(2)-19.91%
Max EPS beat(2)242.76%
EPS beat(4)2
Avg EPS beat(4)54.64%
Min EPS beat(4)-19.91%
Max EPS beat(4)242.76%
EPS beat(8)3
Avg EPS beat(8)-18.62%
EPS beat(12)6
Avg EPS beat(12)-10.72%
EPS beat(16)9
Avg EPS beat(16)-3.78%
Revenue beat(2)0
Avg Revenue beat(2)-4.16%
Min Revenue beat(2)-4.92%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.31%
Revenue beat(8)0
Avg Revenue beat(8)-3.58%
Revenue beat(12)1
Avg Revenue beat(12)-2.8%
Revenue beat(16)2
Avg Revenue beat(16)-2.58%
PT rev (1m)-1.63%
PT rev (3m)-37.1%
EPS NQ rev (1m)-3.38%
EPS NQ rev (3m)-3.43%
EPS NY rev (1m)4.01%
EPS NY rev (3m)-18.08%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.89 | ||
| Fwd PE | 12.63 | ||
| P/S | 0.62 | ||
| P/FCF | N/A | ||
| P/OCF | 73.79 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.97 |
EPS(TTM)5.88
EY3.14%
EPS(NY)14.85
Fwd EY7.92%
FCF(TTM)-9.05
FCFYN/A
OCF(TTM)2.54
OCFY1.36%
SpS300.91
BVpS-5.91
TBVpS-17.66
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | N/A | ||
| ROCE | 15.25% | ||
| ROIC | 13.54% | ||
| ROICexc | 13.71% | ||
| ROICexgc | 14.59% | ||
| OM | 10.06% | ||
| PM (TTM) | 2.53% | ||
| GM | 44.47% | ||
| FCFM | N/A |
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%
ROICexcg growth 3Y-40.85%
ROICexcg 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-Score6
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.55 | ||
| Cap/Depr | 161.29% | ||
| Cap/Sales | 3.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 6.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 2.03 |
F-Score6
WACC10.16%
ROIC/WACC1.33
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)53.52%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%132.5%
EPS Next Y102.9%
EPS Next 2Y66.63%
EPS Next 3Y53.03%
EPS Next 5Y48.55%
Revenue 1Y (TTM)86.81%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%11.97%
Revenue Next Year9.92%
Revenue Next 2Y10.05%
Revenue Next 3Y9.49%
Revenue Next 5Y9.04%
EBIT growth 1Y81.3%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year79.99%
EBIT Next 3Y36.87%
EBIT Next 5Y26.15%
FCF growth 1Y-196.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-86.57%
OCF growth 3Y-70.44%
OCF growth 5Y-44.98%