RH (RH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RH - US74967X1037 - Common Stock
170.44 USD
+2.85 (+1.7%)
170.5 USD
+0.06 (+0.04%)
RH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 122 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 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.
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.
1.2 Ratios
With a Return On Assets value of 2.29%, RH perfoms like the industry average, outperforming 56.56% of the companies in the same industry.
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.
RH's Return On Invested Capital of 8.26% is fine compared to the rest of the industry. RH outperforms 68.85% 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 12.16%.
| 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 70.49% 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 10.49%, RH belongs to the best of the industry, outperforming 84.43% of the companies in the same industry.
RH's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 44.50%, RH is doing good in the industry, outperforming 70.49% of the companies in the same industry.
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
RH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RH has more shares outstanding than it did 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.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that RH is in the distress zone and has some risk of bankruptcy.
RH's Altman-Z score of 1.28 is on the low side compared to the rest of the industry. RH is outperformed by 68.03% of its industry peers.
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.
RH has a Debt to FCF ratio of 25.66. This is comparable to the rest of the industry: RH outperforms 48.36% of its industry peers.
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 81.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.8
WACC10.31%
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.
With a Current ratio value of 1.19, RH is not doing good in the industry: 62.30% of the companies in the same industry are doing better.
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 81.97% 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.
RH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.74% yearly.
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 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 3Y50.61%
EPS Next 5Y47.65%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.41%
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 26.84 indicates a quite expensive valuation of RH.
Based on the Price/Earnings ratio, RH is valued a bit cheaper than 63.93% of the companies in the same industry.
RH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.22, which is the current average of the S&P500 Index.
RH is valuated correctly with a Price/Forward Earnings ratio of 12.82.
75.41% of the companies in the same industry are more expensive than RH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.58, RH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 12.82 |
4.2 Price Multiples
RH's Enterprise Value to EBITDA is on the same level as the industry average.
65.57% of the companies in the same industry are more expensive than RH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.58 | ||
| EV/EBITDA | 12.72 |
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.
A more expensive valuation may be justified as RH's earnings are expected to grow with 50.61% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y57.63%
EPS Next 3Y50.61%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
170.44
+2.85 (+1.7%)
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 Cap3.20B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts72.86
Price Target254.39 (49.25%)
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)0%
PT rev (3m)-3.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 12.82 | ||
| P/S | 0.94 | ||
| P/FCF | 25.58 | ||
| P/OCF | 9.47 | ||
| P/B | 955.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.72 |
EPS(TTM)6.35
EY3.73%
EPS(NY)13.29
Fwd EY7.8%
FCF(TTM)6.66
FCFY3.91%
OCF(TTM)17.99
OCFY10.56%
SpS181.83
BVpS0.18
TBVpS-11.74
PEG (NY)0.36
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
WACC10.31%
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 Y73.57%
EPS Next 2Y57.63%
EPS Next 3Y50.61%
EPS Next 5Y47.65%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.88%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.41%
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 26.84 and the Price/Book (PB) ratio is 955.1.