RH (RH) Fundamental Analysis & Valuation

NYSE:RH • US74967X1037

Current stock price

137.51 USD
-0.58 (-0.42%)
At close:
137.01 USD
-0.5 (-0.36%)
After Hours:

This RH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

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.
  • 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.
RH Yearly Net Income VS EBIT VS OCF VS FCFRH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 200M -200M 400M 600M 800M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.58%, RH is in line with its industry, outperforming 57.72% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 205.92%, RH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 8.18%, RH is doing good in the industry, outperforming 71.54% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for RH is significantly below the industry average of 13.57%.
Industry RankSector Rank
ROA 2.58%
ROE 205.92%
ROIC 8.18%
ROA(3y)2.42%
ROA(5y)5.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.28%
ROIC(5y)11.11%
RH Yearly ROA, ROE, ROICRH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500 1K

1.3 Margins

  • Looking at the Profit Margin, with a value of 3.63%, RH is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
  • In the last couple of years the Profit Margin of RH has declined.
  • With an excellent Operating Margin value of 11.16%, RH belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
  • RH's Operating Margin has declined in the last couple of years.
  • RH has a better Gross Margin (44.07%) than 71.54% 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 RankSector Rank
OM 11.16%
PM (TTM) 3.63%
GM 44.07%
OM growth 3Y-17.64%
OM growth 5Y-7.4%
PM growth 3Y-37.31%
PM growth 5Y-17.58%
GM growth 3Y-4.42%
GM growth 5Y-1.08%
RH Yearly Profit, Operating, Gross MarginsRH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 20 30 40 50

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2

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.
  • The number of shares outstanding for RH has been increased compared to 1 year ago.
  • The number of shares outstanding for RH has been reduced compared to 5 years ago.
  • The debt/assets ratio for RH has been reduced compared to a year ago.
RH Yearly Shares OutstandingRH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10M 20M 30M 40M
RH Yearly Total Debt VS Total AssetsRH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 1.23, we must say that RH is in the distress zone and has some risk of bankruptcy.
  • RH has a worse Altman-Z score (1.23) than 66.67% of its industry peers.
  • The Debt to FCF ratio of RH is 12.65, which is on the high side as it means it would take RH, 12.65 years of fcf income to pay off all of its debts.
  • RH has a Debt to FCF ratio (12.65) which is in line with its industry peers.
  • RH has a Debt/Equity ratio of 51.28. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of RH (51.28) is worse than 80.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 51.28
Debt/FCF 12.65
Altman-Z 1.23
ROIC/WACC1.12
WACC7.28%
RH Yearly LT Debt VS Equity VS FCFRH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that RH should not have too much problems paying its short term obligations.
  • RH has a worse Current ratio (1.19) than 61.79% of its industry peers.
  • A Quick Ratio of 0.31 indicates that RH may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.31, RH is doing worse than 74.80% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.31
RH Yearly Current Assets VS Current LiabilitesRH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B

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6

3. RH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 17.76% over the past year.
  • The earnings per share for RH have been decreasing by -18.42% on average. This is quite bad
  • RH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.14%.
  • The Revenue has been growing slightly by 3.84% on average over the past years.
EPS 1Y (TTM)17.76%
EPS 3Y-36.33%
EPS 5Y-18.42%
EPS Q2Q%-3.16%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y-1.42%
Revenue growth 5Y3.84%
Sales Q2Q%3.72%

3.2 Future

  • The Earnings Per Share is expected to grow by 45.81% 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 8.14% on average per year.
EPS Next Y4.63%
EPS Next 2Y28.03%
EPS Next 3Y36.18%
EPS Next 5Y45.81%
Revenue Next Year4.4%
Revenue Next 2Y6.89%
Revenue Next 3Y7.19%
Revenue Next 5Y8.14%

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.
RH Yearly Revenue VS EstimatesRH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B
RH Yearly EPS VS EstimatesRH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20 40 60

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5

4. RH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 21.83, which indicates a rather expensive current valuation of RH.
  • Based on the Price/Earnings ratio, RH is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • RH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 20.86, which indicates a rather expensive current valuation of RH.
  • Based on the Price/Forward Earnings ratio, RH is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, RH is valued at the same level.
Industry RankSector Rank
PE 21.83
Fwd PE 20.86
RH Price Earnings VS Forward Price EarningsRH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • 60.16% of the companies in the same industry are more expensive than RH, based on the Enterprise Value to EBITDA ratio.
  • 81.30% of the companies in the same industry are more expensive than RH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.39
EV/EBITDA 10.73
RH Per share dataRH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RH does not grow enough to justify the current Price/Earnings ratio.
  • 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 36.18% in the coming years.
PEG (NY)4.71
PEG (5Y)N/A
EPS Next 2Y28.03%
EPS Next 3Y36.18%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RH Dividend Analysis

5.1 Amount

  • No dividends for RH!.
Industry RankSector Rank
Dividend Yield 0%

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RH Fundamentals: All Metrics, Ratios and Statistics

RH

NYSE:RH (4/24/2026, 8:06:19 PM)

After market: 137.01 -0.5 (-0.36%)

137.51

-0.58 (-0.42%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-01
Earnings (Next)06-10
Inst Owners94.5%
Inst Owner Change-0.06%
Ins Owners18.44%
Ins Owner Change0.57%
Market Cap2.59B
Revenue(TTM)3.44B
Net Income(TTM)124.79M
Analysts70
Price Target154.34 (12.24%)
Short Float %31.9%
Short Ratio3.55
Dividend
Industry RankSector 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)-28.09%
Min EPS beat(2)-32.99%
Max EPS beat(2)-23.18%
EPS beat(4)1
Avg EPS beat(4)43.86%
Min EPS beat(4)-32.99%
Max EPS beat(4)242.76%
EPS beat(8)2
Avg EPS beat(8)-8.06%
EPS beat(12)4
Avg EPS beat(12)-17.81%
EPS beat(16)7
Avg EPS beat(16)-9.76%
Revenue beat(2)0
Avg Revenue beat(2)-4.39%
Min Revenue beat(2)-5.88%
Max Revenue beat(2)-2.9%
Revenue beat(4)0
Avg Revenue beat(4)-3.92%
Min Revenue beat(4)-5.88%
Max Revenue beat(4)-2.9%
Revenue beat(8)0
Avg Revenue beat(8)-3.56%
Revenue beat(12)0
Avg Revenue beat(12)-3.51%
Revenue beat(16)2
Avg Revenue beat(16)-2.84%
PT rev (1m)-26.99%
PT rev (3m)-23.17%
EPS NQ rev (1m)-514.79%
EPS NQ rev (3m)-488.48%
EPS NY rev (1m)-38.66%
EPS NY rev (3m)-38.64%
Revenue NQ rev (1m)-10.21%
Revenue NQ rev (3m)-10.32%
Revenue NY rev (1m)-4.31%
Revenue NY rev (3m)-4.26%
Valuation
Industry RankSector Rank
PE 21.83
Fwd PE 20.86
P/S 0.75
P/FCF 10.39
P/OCF 5.73
P/B 42.73
P/tB N/A
EV/EBITDA 10.73
EPS(TTM)6.3
EY4.58%
EPS(NY)6.59
Fwd EY4.79%
FCF(TTM)13.24
FCFY9.63%
OCF(TTM)24.02
OCFY17.47%
SpS182.66
BVpS3.22
TBVpS-8.68
PEG (NY)4.71
PEG (5Y)N/A
Graham Number21.3586 (-84.47%)
Profitability
Industry RankSector Rank
ROA 2.58%
ROE 205.92%
ROCE 9.83%
ROIC 8.18%
ROICexc 8.26%
ROICexgc 8.77%
OM 11.16%
PM (TTM) 3.63%
GM 44.07%
FCFM 7.25%
ROA(3y)2.42%
ROA(5y)5.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.28%
ROIC(5y)11.11%
ROICexc(3y)8.45%
ROICexc(5y)15.87%
ROICexgc(3y)9.02%
ROICexgc(5y)17.23%
ROCE(3y)9.95%
ROCE(5y)13.36%
ROICexgc growth 3Y-26.5%
ROICexgc growth 5Y-17.78%
ROICexc growth 3Y-26.08%
ROICexc growth 5Y-16.78%
OM growth 3Y-17.64%
OM growth 5Y-7.4%
PM growth 3Y-37.31%
PM growth 5Y-17.58%
GM growth 3Y-4.42%
GM growth 5Y-1.08%
F-Score6
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 51.28
Debt/FCF 12.65
Debt/EBITDA 5.84
Cap/Depr 136.66%
Cap/Sales 5.9%
Interest Coverage 1.77
Cash Conversion 84.95%
Profit Quality 199.78%
Current Ratio 1.19
Quick Ratio 0.31
Altman-Z 1.23
F-Score6
WACC7.28%
ROIC/WACC1.12
Cap/Depr(3y)180.1%
Cap/Depr(5y)178.66%
Cap/Sales(3y)7.35%
Cap/Sales(5y)6.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.76%
EPS 3Y-36.33%
EPS 5Y-18.42%
EPS Q2Q%-3.16%
EPS Next Y4.63%
EPS Next 2Y28.03%
EPS Next 3Y36.18%
EPS Next 5Y45.81%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y-1.42%
Revenue growth 5Y3.84%
Sales Q2Q%3.72%
Revenue Next Year4.4%
Revenue Next 2Y6.89%
Revenue Next 3Y7.19%
Revenue Next 5Y8.14%
EBIT growth 1Y22.57%
EBIT growth 3Y-18.81%
EBIT growth 5Y-3.84%
EBIT Next Year40.36%
EBIT Next 3Y24.48%
EBIT Next 5Y25.55%
FCF growth 1Y216.66%
FCF growth 3Y2.71%
FCF growth 5Y-8.55%
OCF growth 1Y2545.46%
OCF growth 3Y3.86%
OCF growth 5Y-2.02%

RH / RH Fundamental Analysis 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.


What is the profitability of RH stock?

RH (RH) has a profitability rating of 6 / 10.


What is the financial health of RH (RH) stock?

The financial health rating of RH (RH) is 2 / 10.