RH (RH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RH - US74967X1037 - Common Stock
170.98 USD
-1.65 (-0.96%)
170.98 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RH. RH was compared to 123 industry peers in the Specialty Retail industry. While RH is still in line with the averages on profitability rating, there are concerns on its financial health. RH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
RH had positive earnings in the past year.
RH had a positive operating cash flow in the past year.
In the past 5 years RH has always been profitable.
In the past 5 years RH always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.29%, RH perfoms like the industry average, outperforming 57.26% of the companies in the same industry.
With an excellent Return On Equity value of 3285.39%, RH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
RH has a Return On Invested Capital of 8.26%. This is in the better half of the industry: RH outperforms 69.35% 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 12.18%.
| 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
The Profit Margin of RH (3.22%) is better than 70.97% of its industry peers.
RH's Profit Margin has declined in the last couple of years.
RH has a Operating Margin of 10.49%. This is amongst the best in the industry. RH outperforms 84.68% of its industry peers.
In the last couple of years the Operating Margin of RH has declined.
RH has a Gross Margin of 44.50%. This is in the better half of the industry: RH outperforms 69.35% of its industry peers.
RH's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RH is still 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
RH has an Altman-Z score of 1.28. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.28, RH is not doing good in the industry: 68.55% of the companies in the same industry are doing better.
The Debt to FCF ratio of RH is 25.66, which is on the high side as it means it would take RH, 25.66 years of fcf income to pay off 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 worse Debt to Equity ratio (944.39) than 82.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.8
WACC10.3%
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's Current ratio of 1.19 is on the low side compared to the rest of the industry. RH is outperformed by 62.90% of its industry peers.
A Quick Ratio of 0.26 indicates that RH may have some problems paying its short term obligations.
RH has a Quick ratio of 0.26. This is amonst the worse of the industry: RH underperforms 82.26% 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.
Measured over the past years, RH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.46% on average per year.
Looking at the last year, RH shows a quite strong growth in Revenue. The Revenue has grown by 9.74% in the last year.
The Revenue has been growing slightly by 3.74% on average over the past years.
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
Based on estimates for the next years, RH will show a quite strong growth in Revenue. The Revenue will grow by 8.41% on average per year.
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.
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
A Price/Earnings ratio of 26.93 indicates a quite expensive valuation of RH.
RH's Price/Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 64.52% of the companies in the same industry.
RH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.39.
With a Price/Forward Earnings ratio of 15.68, RH is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 69.35% of the companies listed in the same industry.
RH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.93 | ||
| Fwd PE | 15.68 |
4.2 Price Multiples
RH's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RH is valued a bit cheaper than the industry average as 66.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.66 | ||
| EV/EBITDA | 12.74 |
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)0.68
PEG (5Y)N/A
EPS Next 2Y42.75%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
170.98
-1.65 (-0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.44%
Inst Owner Change-0.61%
Ins Owners18.49%
Ins Owner Change0.6%
Market Cap3.21B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts72.86
Price Target200.88 (17.49%)
Short Float %23.3%
Short Ratio3.53
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)-35.3%
EPS NQ rev (3m)-27.02%
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 | 26.93 | ||
| Fwd PE | 15.68 | ||
| P/S | 0.94 | ||
| P/FCF | 25.66 | ||
| P/OCF | 9.5 | ||
| P/B | 958.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.74 |
EPS(TTM)6.35
EY3.71%
EPS(NY)10.9
Fwd EY6.38%
FCF(TTM)6.66
FCFY3.9%
OCF(TTM)17.99
OCFY10.52%
SpS181.83
BVpS0.18
TBVpS-11.74
PEG (NY)0.68
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 | 1.28 |
F-Score7
WACC10.3%
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 Year71.94%
EBIT Next 3Y31.24%
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.
What is the valuation status for RH stock?
ChartMill assigns a valuation rating of 6 / 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.
Can you provide the PE and PB ratios for RH stock?
The Price/Earnings (PE) ratio for RH (RH) is 26.93 and the Price/Book (PB) ratio is 958.12.