RH (RH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RH - US74967X1037 - Common Stock
219 USD
+4.06 (+1.89%)
219 USD
0 (0%)
Overall RH gets a fundamental rating of 4 out of 10. We evaluated RH against 122 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RH had positive earnings in the past year.
In the past year RH had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.29%, RH is in line with its industry, outperforming 56.56% of the companies in the same industry.
RH's Return On Equity of 3285.39% is amongst the best of the industry. RH outperforms 100.00% of its industry peers.
RH has a Return On Invested Capital of 8.26%. This is in the better half of the industry: RH outperforms 68.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RH is in line with the industry average of 12.14%.
| 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's Profit Margin of 3.22% is fine compared to the rest of the industry. RH outperforms 69.67% of its industry peers.
RH's Profit Margin has declined in the last couple of years.
The Operating Margin of RH (10.49%) is better than 84.43% of its industry peers.
In the last couple of years the Operating Margin of RH has declined.
The Gross Margin of RH (44.50%) is better than 70.49% 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 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.
Compared to 5 years ago, RH has less shares outstanding
RH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.39, 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 1.39, RH is doing worse than 66.39% of the companies in the same industry.
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's Debt to FCF ratio of 25.66 is in line compared to the rest of the industry. RH outperforms 47.54% 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.
RH has a Debt to Equity ratio of 944.39. This is amonst the worse of the industry: RH underperforms 81.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.8
WACC10.34%
2.3 Liquidity
RH has a Current Ratio of 1.19. This is a normal value and indicates that RH is financially healthy and should not expect problems in meeting its short term obligations.
RH has a Current ratio of 1.19. This is in the lower half of the industry: RH underperforms 61.48% 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.
The Quick ratio of RH (0.26) is worse than 81.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.26 |
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.
The Revenue has grown by 9.74% in the past year. This is quite good.
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 47.65% on average over the next years. This is a very strong growth
RH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.41% yearly.
EPS Next Y39.78%
EPS Next 2Y42.75%
EPS Next 3Y39.79%
EPS Next 5Y47.65%
Revenue Next Year8.46%
Revenue Next 2Y8.68%
Revenue Next 3Y8.41%
Revenue Next 5Y8.41%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.49, the valuation of RH can be described as expensive.
RH's Price/Earnings ratio is in line with the industry average.
RH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.19.
Based on the Price/Forward Earnings ratio of 20.09, the valuation of RH can be described as rather expensive.
64.75% 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 23.88, RH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.49 | ||
| Fwd PE | 20.09 |
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 61.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.86 | ||
| EV/EBITDA | 14.38 |
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)0.87
PEG (5Y)N/A
EPS Next 2Y42.75%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
219
+4.06 (+1.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner Change0%
Ins Owners18.46%
Ins Owner Change0.47%
Market Cap4.11B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts72.86
Price Target200.88 (-8.27%)
Short Float %24.25%
Short Ratio3.66
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)-24.08%
EPS NQ rev (1m)-38.9%
EPS NQ rev (3m)-31.08%
EPS NY rev (1m)-19.47%
EPS NY rev (3m)-19.47%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.49 | ||
| Fwd PE | 20.09 | ||
| P/S | 1.2 | ||
| P/FCF | 32.86 | ||
| P/OCF | 12.17 | ||
| P/B | 1227.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.38 |
EPS(TTM)6.35
EY2.9%
EPS(NY)10.9
Fwd EY4.98%
FCF(TTM)6.66
FCFY3.04%
OCF(TTM)17.99
OCFY8.22%
SpS181.83
BVpS0.18
TBVpS-11.74
PEG (NY)0.87
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 | 1.39 |
F-Score7
WACC10.34%
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 Y39.78%
EPS Next 2Y42.75%
EPS Next 3Y39.79%
EPS Next 5Y47.65%
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 5Y8.41%
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 34.49 and the Price/Book (PB) ratio is 1227.21.