RH (RH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:RH • US74967X1037
199.37 USD
+3.64 (+1.86%)
At close: Feb 3, 2026
199.41 USD
+0.04 (+0.02%)
After Hours: 2/3/2026, 8:04:00 PM
RH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 121 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 is not valued too expensively and it also shows a decent growth rate.
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.
- RH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RH's Return On Assets of 2.29% is in line compared to the rest of the industry. RH outperforms 56.20% of its industry peers.
- RH has a Return On Equity of 3285.39%. This is amongst the best in the industry. RH outperforms 100.00% of its industry peers.
- RH's Return On Invested Capital of 8.26% is fine compared to the rest of the industry. RH outperforms 69.42% 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 12.09%.
| 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
- Looking at the Profit Margin, with a value of 3.22%, RH is in the better half of the industry, outperforming 69.42% of the companies in the same industry.
- RH's Profit Margin has declined in the last couple of years.
- RH's Operating Margin of 10.49% is amongst the best of the industry. RH outperforms 84.30% of its industry peers.
- In the last couple of years the Operating Margin of RH has declined.
- Looking at the Gross Margin, with a value of 44.50%, RH is in the better half of the industry, outperforming 70.25% of the companies in the same industry.
- 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RH is creating some value.
- Compared to 1 year ago, RH has more shares outstanding
- Compared to 5 years ago, RH has less shares outstanding
- Compared to 1 year ago, RH has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.35, we must say that RH is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.35, RH is not doing good in the industry: 66.94% 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.
- The Debt to FCF ratio of RH (25.66) is comparable to the rest of the industry.
- RH has a Debt/Equity ratio of 944.39. This is a high value indicating a heavy dependency on external financing.
- RH has a worse Debt to Equity ratio (944.39) than 80.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.79
WACC10.39%
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 has a worse Current ratio (1.19) than 61.16% 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 80.17% 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.
- The earnings per share for RH have been decreasing by -14.46% on average. This is quite bad
- RH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.74%.
- 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.
- Based on estimates for the next years, RH will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
EPS Next Y36.4%
EPS Next 2Y41.7%
EPS Next 3Y39.79%
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. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 31.40 indicates a quite expensive valuation of RH.
- Based on the Price/Earnings ratio, RH is valued a bit cheaper than the industry average as 62.81% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.18. RH is around the same levels.
- The Price/Forward Earnings ratio is 18.56, 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 66.94% of the companies are valued more expensively.
- RH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.4 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as RH.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 61.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.92 | ||
| EV/EBITDA | 13.8 |
4.3 Compensation for Growth
- The 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)0.86
PEG (5Y)N/A
EPS Next 2Y41.7%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
- RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
199.37
+3.64 (+1.86%)
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 Change-0.53%
Ins Owners18.46%
Ins Owner Change0.47%
Market Cap3.74B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target200.88 (0.76%)
Short Float %24.42%
Short Ratio3.47
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)-23.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.9%
EPS NY rev (1m)-2.41%
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 | 31.4 | ||
| Fwd PE | 18.56 | ||
| P/S | 1.1 | ||
| P/FCF | 29.92 | ||
| P/OCF | 11.08 | ||
| P/B | 1117.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.8 |
EPS(TTM)6.35
EY3.19%
EPS(NY)10.74
Fwd EY5.39%
FCF(TTM)6.66
FCFY3.34%
OCF(TTM)17.99
OCFY9.03%
SpS181.83
BVpS0.18
TBVpS-11.74
PEG (NY)0.86
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 | 1.35 |
F-Score7
WACC10.39%
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 2Y41.7%
EPS Next 3Y39.79%
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 Year55.61%
EBIT Next 3Y25.79%
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 5 / 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 31.4 and the Price/Book (PB) ratio is 1117.21.