RH (RH) Stock Fundamental Analysis
USA - NYSE:RH - US74967X1037 - Common Stock
231.095 USD
+1.59 (+0.69%)
Overall RH gets a fundamental rating of 4 out of 10. We evaluated RH against 121 industry peers in the Specialty Retail industry. RH has a medium profitability rating, but doesn't score so well on its financial health evaluation. RH is not valued too expensively and it also shows a decent 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.
RH had positive earnings in each of the past 5 years.
Each year in the past 5 years RH had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.27%, RH perfoms like the industry average, outperforming 56.20% of the companies in the same industry.
RH has a Return On Invested Capital of 8.46%. This is in the better half of the industry: RH outperforms 71.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RH is in line with the industry average of 12.16%.
| 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 70.25% of its industry peers.
In the last couple of years the Profit Margin of RH has declined.
With an excellent Operating Margin value of 10.68%, RH belongs to the best of the industry, outperforming 85.12% of the companies in the same industry.
In the last couple of years the Operating Margin of RH has declined.
Looking at the Gross Margin, with a value of 44.61%, 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 | 10.68% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RH is still creating some value.
The number of shares outstanding for RH has been increased compared to 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 1.43. 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 1.43, RH is not doing good in the industry: 65.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.43 |
ROIC/WACC0.83
WACC10.24%
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.
RH has a Quick Ratio of 1.26. This is a bad value and indicates that RH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.26, RH is doing worse than 81.82% of the companies in the same industry.
| 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.
Looking at the last year, RH shows a quite strong growth in Revenue. The Revenue has grown by 9.56% 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)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
Based on estimates for the next years, RH will show a very strong growth in Earnings Per Share. The EPS will grow by 47.52% on average per year.
The Revenue is expected to grow by 8.75% on average over the next years. This is quite good.
EPS Next Y101.69%
EPS Next 2Y65.77%
EPS Next 3Y53.48%
EPS Next 5Y47.52%
Revenue Next Year9.07%
Revenue Next 2Y9.94%
Revenue Next 3Y8.87%
Revenue Next 5Y8.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
RH is valuated quite expensively with a Price/Earnings ratio of 32.46.
Compared to the rest of the industry, the Price/Earnings ratio of RH is on the same level as its industry peers.
RH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.72, the valuation of RH can be described as correct.
70.25% of the companies in the same industry are more expensive than RH, based on the Price/Forward Earnings ratio.
RH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.16 |
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.
RH's earnings are expected to grow with 53.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y65.77%
EPS Next 3Y53.48%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:RH (9/18/2025, 10:31:59 AM)
231.095
+1.59 (+0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners98.25%
Inst Owner Change-4.55%
Ins Owners18.41%
Ins Owner Change0.15%
Market Cap4.33B
Analysts73.57
Price Target264.57 (14.49%)
Short Float %19.58%
Short Ratio2.6
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)-0.5%
PT rev (3m)-1.84%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)3.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)-0.77%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.46 | ||
| Fwd PE | 15.72 | ||
| P/S | 1.3 | ||
| P/FCF | N/A | ||
| P/OCF | 24.86 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.16 |
EPS(TTM)7.12
EY3.08%
EPS(NY)14.7
Fwd EY6.36%
FCF(TTM)-2.88
FCFYN/A
OCF(TTM)9.3
OCFY4.02%
SpS178.18
BVpS-2.18
TBVpS-14.11
PEG (NY)0.32
PEG (5Y)N/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%
ROICexcg growth 3Y-40.85%
ROICexcg 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 | 1.43 |
F-Score8
WACC10.24%
ROIC/WACC0.83
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 Y101.69%
EPS Next 2Y65.77%
EPS Next 3Y53.48%
EPS Next 5Y47.52%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
Revenue Next Year9.07%
Revenue Next 2Y9.94%
Revenue Next 3Y8.87%
Revenue Next 5Y8.75%
EBIT growth 1Y38.53%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year80.79%
EBIT Next 3Y36.87%
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%