RH (RH) Fundamental Analysis & Valuation
NYSE:RH • US74967X1037
133.35 USD
-6.78 (-4.84%)
Last: Mar 12, 2026, 02:09 PM
This RH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
RH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 124 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 not valued too expensively and it also shows a decent growth rate.
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.
1.2 Ratios
- RH has a Return On Assets (2.29%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of 3285.39%, RH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of RH (8.26%) is better than 72.58% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RH is below the industry average of 13.57%.
| 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
- With a decent Profit Margin value of 3.22%, RH is doing good in the industry, outperforming 70.16% 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 (10.49%) is better than 84.68% of its industry peers.
- RH's Operating Margin has declined in the last couple of years.
- The Gross Margin of RH (44.50%) is better than 70.97% 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. 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.
- Compared to 1 year ago, RH has more shares outstanding
- 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.
2.2 Solvency
- Based on the Altman-Z score of 1.21, we must say that RH is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of RH (1.21) is worse than 65.32% of its industry peers.
- 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.
- With a Debt to FCF ratio value of 25.66, RH perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
- A Debt/Equity ratio of 944.39 is on the high side and indicates that RH has dependencies on debt financing.
- RH has a Debt to Equity ratio of 944.39. This is in the lower half of the industry: RH underperforms 79.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.79
WACC10.44%
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.
- The Current ratio of RH (1.19) is comparable to the rest of the industry.
- 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.
- RH has a worse Quick ratio (0.26) than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.26 |
3. RH Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 41.43% over the past year.
- The earnings per share for RH have been decreasing by -14.46% on average. This is quite bad
- Looking at the last year, RH shows a quite strong growth in Revenue. The Revenue has grown by 9.74% in the last year.
- Measured over the past years, RH shows a small growth in Revenue. The Revenue has been growing by 3.74% on average per year.
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
- RH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.55% yearly.
- The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
EPS Next Y36.4%
EPS Next 2Y41.79%
EPS Next 3Y40.1%
EPS Next 5Y45.55%
Revenue Next Year8.46%
Revenue Next 2Y8.69%
Revenue Next 3Y8.43%
Revenue Next 5Y8.19%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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. RH Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 21.00 indicates a rather expensive valuation of RH.
- Based on the Price/Earnings ratio, RH is valued a bit cheaper than the industry average as 68.55% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.15, RH is valued at the same level.
- The Price/Forward Earnings ratio is 12.40, which indicates a correct valuation of RH.
- Based on the Price/Forward Earnings ratio, RH is valued a bit cheaper than the industry average as 75.81% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of RH to the average of the S&P500 Index (24.27), we can say RH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 12.4 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RH is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, RH is valued a bit cheaper than 66.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.04 | ||
| EV/EBITDA | 11.59 |
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.
- RH has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as RH's earnings are expected to grow with 40.10% in the coming years.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y41.79%
EPS Next 3Y40.1%
5. RH Dividend Analysis
5.1 Amount
- RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
RH Fundamentals: All Metrics, Ratios and Statistics
NYSE:RH (3/12/2026, 2:09:13 PM)
133.35
-6.78 (-4.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-11 2025-12-11/amc
Earnings (Next)06-10 2026-06-10
Inst Owners88.19%
Inst Owner Change9.62%
Ins Owners18.46%
Ins Owner Change0.64%
Market Cap2.50B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target211.4 (58.53%)
Short Float %22.48%
Short Ratio3.41
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)0%
PT rev (3m)-16.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-21.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 12.4 | ||
| P/S | 0.73 | ||
| P/FCF | 20.04 | ||
| P/OCF | 7.42 | ||
| P/B | 748.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.59 |
EPS(TTM)6.35
EY4.76%
EPS(NY)10.76
Fwd EY8.07%
FCF(TTM)6.65
FCFY4.99%
OCF(TTM)17.97
OCFY13.47%
SpS181.54
BVpS0.18
TBVpS-11.72
PEG (NY)0.58
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 | 1.21 |
F-Score7
WACC10.44%
ROIC/WACC0.79
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 Y36.4%
EPS Next 2Y41.79%
EPS Next 3Y40.1%
EPS Next 5Y45.55%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.88%
Revenue Next Year8.46%
Revenue Next 2Y8.69%
Revenue Next 3Y8.43%
Revenue Next 5Y8.19%
EBIT growth 1Y16.26%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year56.62%
EBIT Next 3Y26.31%
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 6 / 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 21 and the Price/Book (PB) ratio is 748.45.