RH (RH) Stock Fundamental Analysis
USA - NYSE:RH - US74967X1037 - Common Stock
149.41 USD
-8.91 (-5.63%)
150.301 USD
+0.89 (+0.6%)
We assign a fundamental rating of 4 out of 10 to RH. RH was compared to 122 industry peers in the Specialty Retail industry. There are concerns on the financial health of RH while its profitability can be described as average. RH has a decent growth rate and is not valued too expensively.
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.
In the past 5 years RH always reported a positive cash flow from operatings.
1.2 Ratios
RH's Return On Assets of 2.27% is in line compared to the rest of the industry. RH outperforms 56.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.46%, RH is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RH is in line with the industry average of 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | N/A | ||
| ROIC | 8.46% |
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
RH's Profit Margin of 3.20% is fine compared to the rest of the industry. RH outperforms 70.49% of its industry peers.
RH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.68%, RH belongs to the top of the industry, outperforming 83.61% of the companies in the same industry.
In the last couple of years the Operating Margin of RH has declined.
RH's Gross Margin of 44.61% is fine compared to the rest of the industry. RH outperforms 70.49% 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 | 10.68% | ||
| PM (TTM) | 3.2% | ||
| GM | 44.61% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RH is creating some value.
RH has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RH has less shares outstanding
The debt/assets ratio for RH has been reduced compared to a year ago.
2.2 Solvency
RH has an Altman-Z score of 1.24. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
RH's Altman-Z score of 1.24 is on the low side compared to the rest of the industry. RH is outperformed by 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.84
WACC10.05%
2.3 Liquidity
RH has a Current Ratio of 1.26. This is a normal value and indicates that RH is financially healthy and should not expect problems in meeting its short term obligations.
RH has a Current ratio (1.26) which is comparable to the rest of the industry.
A Quick Ratio of 0.26 indicates that RH may have some problems paying its short term obligations.
RH has a worse Quick ratio (0.26) than 84.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| 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 347.80%, 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.
The Revenue has grown by 9.56% in the past year. This is quite good.
RH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.74% yearly.
EPS 1Y (TTM)347.8%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%73.37%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
3.2 Future
RH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.65% yearly.
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 Y73.57%
EPS Next 2Y57.63%
EPS Next 3Y49.48%
EPS Next 5Y47.65%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.48%
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.
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
Based on the Price/Earnings ratio of 20.98, the valuation of RH can be described as rather expensive.
68.03% of the companies in the same industry are more expensive than RH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.89. RH is around the same levels.
The Price/Forward Earnings ratio is 11.24, which indicates a very decent valuation of RH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 73.77% of the companies listed in the same industry.
RH is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.98 | ||
| Fwd PE | 11.24 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.13 |
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.
A more expensive valuation may be justified as RH's earnings are expected to grow with 49.48% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y57.63%
EPS Next 3Y49.48%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
149.41
-8.91 (-5.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.63%
Inst Owner Change-2.18%
Ins Owners18.49%
Ins Owner Change0.62%
Market Cap2.80B
Revenue(TTM)3.34B
Net Income(TTM)106.83M
Analysts72.86
Price Target254.39 (70.26%)
Short Float %20.81%
Short Ratio2.87
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)115.8%
Min EPS beat(2)-11.15%
Max EPS beat(2)242.76%
EPS beat(4)1
Avg EPS beat(4)50.63%
Min EPS beat(4)-19.91%
Max EPS beat(4)242.76%
EPS beat(8)2
Avg EPS beat(8)-26.14%
EPS beat(12)5
Avg EPS beat(12)-13.06%
EPS beat(16)8
Avg EPS beat(16)-6.17%
Revenue beat(2)0
Avg Revenue beat(2)-3.45%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.96%
Revenue beat(8)0
Avg Revenue beat(8)-3.89%
Revenue beat(12)1
Avg Revenue beat(12)-3.04%
Revenue beat(16)2
Avg Revenue beat(16)-2.7%
PT rev (1m)-2.7%
PT rev (3m)-4.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-47.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.98 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | 16.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.13 |
EPS(TTM)7.12
EY4.77%
EPS(NY)13.29
Fwd EY8.9%
FCF(TTM)-2.88
FCFYN/A
OCF(TTM)9.29
OCFY6.21%
SpS177.99
BVpS-2.18
TBVpS-14.1
PEG (NY)0.29
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | N/A | ||
| ROCE | 9.53% | ||
| ROIC | 8.46% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 9.09% | ||
| OM | 10.68% | ||
| PM (TTM) | 3.2% | ||
| GM | 44.61% | ||
| FCFM | N/A |
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-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 166.49% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 1.24 |
F-Score8
WACC10.05%
ROIC/WACC0.84
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)347.8%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%73.37%
EPS Next Y73.57%
EPS Next 2Y57.63%
EPS Next 3Y49.48%
EPS Next 5Y47.65%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.48%
Revenue Next 5Y8.41%
EBIT growth 1Y38.53%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year70.77%
EBIT Next 3Y35.37%
EBIT Next 5Y26.15%
FCF growth 1Y-120.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.12%
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 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 5 / 10.
Can you provide the PE and PB ratios for RH stock?
The Price/Earnings (PE) ratio for RH (RH) is 20.98 and the Price/Book (PB) ratio is -68.49.