RH (RH) Stock Fundamental Analysis
NYSE:RH - New York Stock Exchange, Inc. - US74967X1037 - Common Stock - Currency: USD
RH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 120 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RH had positive earnings in the past year.
In the past year RH has reported a negative cash flow from operations.
RH had positive earnings in each of the past 5 years.
RH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RH (1.57%) is comparable to the rest of the industry.
RH's Return On Invested Capital of 7.16% is fine compared to the rest of the industry. RH outperforms 63.25% 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 12.30%.
The 3 year average ROIC (13.39%) for RH is well above the current ROIC(7.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | N/A | ||
| ROIC | 7.16% |
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
With a Profit Margin value of 2.25%, RH perfoms like the industry average, outperforming 58.97% of the companies in the same industry.
In the last couple of years the Profit Margin of RH has declined.
Looking at the Operating Margin, with a value of 9.90%, RH belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of RH has grown nicely.
Looking at the Gross Margin, with a value of 44.20%, RH is in the better half of the industry, outperforming 68.38% of the companies in the same industry.
RH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.9% | ||
| PM (TTM) | 2.25% | ||
| GM | 44.2% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RH is still creating some value.
Compared to 1 year ago, RH has less shares outstanding
The number of shares outstanding for RH has been reduced compared to 5 years ago.
Compared to 1 year ago, RH has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that RH is in the distress zone and has some risk of bankruptcy.
RH's Altman-Z score of 1.74 is on the low side compared to the rest of the industry. RH is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC0.67
WACC10.65%
2.3 Liquidity
A Current Ratio of 1.43 indicates that RH should not have too much problems paying its short term obligations.
RH's Current ratio of 1.43 is in line compared to the rest of the industry. RH outperforms 52.14% of its industry peers.
RH has a Quick Ratio of 1.43. 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 Quick ratio of 0.33. This is in the lower half of the industry: RH underperforms 68.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The earnings per share for RH have decreased strongly by -47.79% in the last year.
RH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.51% yearly.
Looking at the last year, RH shows a small growth in Revenue. The Revenue has grown by 1.41% in the last year.
RH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.87% yearly.
EPS 1Y (TTM)-47.79%
EPS 3Y-28.26%
EPS 5Y-4.51%
EPS Q2Q%690.48%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y2.07%
Revenue growth 5Y3.87%
Sales Q2Q%8.05%
3.2 Future
The Earnings Per Share is expected to grow by 38.91% on average over the next years. This is a very strong growth
Based on estimates for the next years, RH will show a quite strong growth in Revenue. The Revenue will grow by 8.77% on average per year.
EPS Next Y-8.02%
EPS Next 2Y44.66%
EPS Next 3Y45.05%
EPS Next 5Y38.91%
Revenue Next Year4.24%
Revenue Next 2Y9.4%
Revenue Next 3Y10.43%
Revenue Next 5Y8.77%
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
With a Price/Earnings ratio of 75.74, RH can be considered very expensive at the moment.
RH's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, RH is valued quite expensively.
A Price/Forward Earnings ratio of 25.23 indicates a quite expensive valuation of RH.
RH's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RH to the average of the S&P500 Index (22.68), we can say RH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.74 | ||
| Fwd PE | 25.23 |
4.2 Price Multiples
64.10% of the companies in the same industry are cheaper than RH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.66 |
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 45.05% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.66%
EPS Next 3Y45.05%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
340.09
-25.84 (-7.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.99%
Inst Owner Change1.8%
Ins Owners18.85%
Ins Owner Change0.28%
Market Cap6.33B
Analysts78
Price Target467.74 (37.53%)
Short Float %11.8%
Short Ratio2.79
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)-2.14%
Min EPS beat(2)-9.2%
Max EPS beat(2)4.91%
EPS beat(4)1
Avg EPS beat(4)-69.52%
Min EPS beat(4)-215.73%
Max EPS beat(4)4.91%
EPS beat(8)3
Avg EPS beat(8)-48.19%
EPS beat(12)6
Avg EPS beat(12)-26.11%
EPS beat(16)10
Avg EPS beat(16)-16.51%
Revenue beat(2)0
Avg Revenue beat(2)-2.64%
Min Revenue beat(2)-2.96%
Max Revenue beat(2)-2.31%
Revenue beat(4)0
Avg Revenue beat(4)-3.92%
Min Revenue beat(4)-7.81%
Max Revenue beat(4)-2.31%
Revenue beat(8)0
Avg Revenue beat(8)-3.17%
Revenue beat(12)2
Avg Revenue beat(12)-2.56%
Revenue beat(16)3
Avg Revenue beat(16)-1.49%
PT rev (1m)2.96%
PT rev (3m)37.07%
EPS NQ rev (1m)12.34%
EPS NQ rev (3m)-29.34%
EPS NY rev (1m)0.41%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)4.49%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.74 | ||
| Fwd PE | 25.23 | ||
| P/S | 2.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.66 |
EPS(TTM)4.49
EY1.32%
EPS(NY)13.48
Fwd EY3.96%
FCF(TTM)-21.26
FCFYN/A
OCF(TTM)-4.2
OCFYN/A
SpS167.02
BVpS-9.84
TBVpS-21.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | N/A | ||
| ROCE | 8.62% | ||
| ROIC | 7.16% | ||
| ROICexc | 7.34% | ||
| ROICexgc | 7.83% | ||
| OM | 9.9% | ||
| PM (TTM) | 2.25% | ||
| GM | 44.2% | ||
| FCFM | N/A |
ROA(3y)8.49%
ROA(5y)8.77%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.39%
ROIC(5y)15.93%
ROICexc(3y)21.27%
ROICexc(5y)21%
ROICexgc(3y)23.2%
ROICexgc(5y)23.38%
ROCE(3y)16.12%
ROCE(5y)19.36%
ROICexcg growth 3Y-23.06%
ROICexcg growth 5Y-9.92%
ROICexc growth 3Y-21.8%
ROICexc growth 5Y-8.32%
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%
F-Score3
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.24 | ||
| Cap/Depr | 242.84% | ||
| Cap/Sales | 10.22% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.74 |
F-Score3
WACC10.65%
ROIC/WACC0.67
Cap/Depr(3y)193.12%
Cap/Depr(5y)156.68%
Cap/Sales(3y)6.22%
Cap/Sales(5y)5.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-47.79%
EPS 3Y-28.26%
EPS 5Y-4.51%
EPS Q2Q%690.48%
EPS Next Y-8.02%
EPS Next 2Y44.66%
EPS Next 3Y45.05%
EPS Next 5Y38.91%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y2.07%
Revenue growth 5Y3.87%
Sales Q2Q%8.05%
Revenue Next Year4.24%
Revenue Next 2Y9.4%
Revenue Next 3Y10.43%
Revenue Next 5Y8.77%
EBIT growth 1Y-25.68%
EBIT growth 3Y-7.08%
EBIT growth 5Y7.44%
EBIT Next Year28.6%
EBIT Next 3Y27.92%
EBIT Next 5Y20.82%
FCF growth 1Y-222.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-116.81%
OCF growth 3Y-26.09%
OCF growth 5Y-4.12%