RH (RH)
US74967X1037 - Common Stock
RH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. RH has a medium profitability rating, but doesn't score so well on its financial health evaluation. RH is valied quite expensively at the moment, while it does show a decent 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.
In the past 5 years RH has always been profitable.
Each year in the past 5 years RH had a positive operating cash flow.
1.2 Ratios
RH has a Return On Assets (0.79%) which is in line with its industry peers.
RH's Return On Invested Capital of 6.35% is fine compared to the rest of the industry. RH outperforms 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RH is in line with the industry average of 12.03%.
The last Return On Invested Capital (6.35%) for RH is well below the 3 year average (13.39%), which needs to be investigated, but indicates that RH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | N/A | ||
| ROIC | 6.35% |
ROA(3y)8.49%
ROA(5y)8.77%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.39%
ROIC(5y)15.93%
1.3 Margins
Looking at the Profit Margin, with a value of 1.13%, RH is in line with its industry, outperforming 54.55% 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 (8.45%) is better than 82.64% of its industry peers.
In the last couple of years the Operating Margin of RH has grown nicely.
The Gross Margin of RH (44.39%) is better than 69.42% of its industry peers.
In the last couple of years the Gross Margin of RH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.45% | ||
| PM (TTM) | 1.13% | ||
| GM | 44.39% |
OM growth 3Y-8.97%
OM growth 5Y3.44%
PM growth 3Y-23.86%
PM growth 5Y-4.91%
GM growth 3Y-0.49%
GM growth 5Y3.12%
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.
Compared to 1 year ago, RH has less shares outstanding
Compared to 5 years ago, RH has less shares outstanding
The debt/assets ratio for RH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that RH is in the distress zone and has some risk of bankruptcy.
RH has a Altman-Z score of 1.76. This is in the lower half of the industry: RH underperforms 61.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.76 |
ROIC/WACC0.61
WACC10.48%
2.3 Liquidity
RH has a Current Ratio of 1.21. 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 (1.21) is worse than 60.33% of its industry peers.
A Quick Ratio of 0.30 indicates that RH may have some problems paying its short term obligations.
RH's Quick ratio of 0.30 is on the low side compared to the rest of the industry. RH is outperformed by 75.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
RH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -89.18%.
Measured over the past years, RH shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.51% on average per year.
Looking at the last year, RH shows a decrease in Revenue. The Revenue has decreased by -4.25% in the last year.
The Revenue has been growing slightly by 3.87% on average over the past years.
EPS 1Y (TTM)-89.18%
EPS 3Y-28.26%
EPS 5Y-4.51%
EPS Q2Q%-57%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y2.07%
Revenue growth 5Y3.87%
Sales Q2Q%3.64%
3.2 Future
Based on estimates for the next years, RH will show a very strong growth in Earnings Per Share. The EPS will grow by 39.78% on average per year.
The Revenue is expected to grow by 8.12% on average over the next years. This is quite good.
EPS Next Y-9.26%
EPS Next 2Y38.95%
EPS Next 3Y40.14%
EPS Next 5Y39.78%
Revenue Next Year3.01%
Revenue Next 2Y6.97%
Revenue Next 3Y8.25%
Revenue Next 5Y8.12%
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
With a Price/Earnings ratio of 249.30, RH can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RH is on the same level as its industry peers.
RH's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.77.
With a Price/Forward Earnings ratio of 31.88, RH can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as RH.
RH's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 249.3 | ||
| Fwd PE | 31.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RH is valued a bit more expensive than the industry average as 61.98% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.69 |
4.3 Compensation for Growth
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 40.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.95%
EPS Next 3Y40.14%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RH
NYSE:RH (12/18/2024, 4:21:11 PM)
After market: 380.26 -16.13 (-4.07%)396.39
-15.33 (-3.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.33B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 249.3 | ||
| Fwd PE | 31.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.79% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.45% | ||
| PM (TTM) | 1.13% | ||
| GM | 44.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-89.18%
EPS 3Y-28.26%
EPS 5Y
EPS Q2Q%
EPS Next Y-9.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y2.07%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y