RH (RH) Fundamental Analysis & Valuation

NYSE:RH • US74967X1037

Current stock price

128.78 USD
-1.39 (-1.07%)
At close:
130.74 USD
+1.96 (+1.52%)
After Hours:

This RH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. RH Profitability Analysis

1.1 Basic Checks

  • RH had positive earnings in the past year.
  • In the past year RH had a positive cash flow from operations.
  • In the past 5 years RH has always been profitable.
  • In the past 5 years RH always reported a positive cash flow from operatings.
RH Yearly Net Income VS EBIT VS OCF VS FCFRH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of RH (2.29%) is comparable to the rest of the industry.
  • RH's Return On Equity of 3285.39% is amongst the best of the industry. RH outperforms 100.00% of its industry peers.
  • RH has a Return On Invested Capital of 8.26%. This is in the better half of the industry: RH outperforms 73.98% of its industry peers.
  • RH had an Average Return On Invested Capital over the past 3 years of 10.73%. This is below the industry average of 13.21%.
Industry RankSector 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%
RH Yearly ROA, ROE, ROICRH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500 1K

1.3 Margins

  • RH has a better Profit Margin (3.22%) than 69.92% of its industry peers.
  • In the last couple of years the Profit Margin of RH has declined.
  • Looking at the Operating Margin, with a value of 10.49%, RH belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
  • RH's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 44.50%, RH is in the better half of the industry, outperforming 70.73% 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 RankSector 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%
RH Yearly Profit, Operating, Gross MarginsRH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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2

2. RH Health Analysis

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.
  • RH has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, RH has an improved debt to assets ratio.
RH Yearly Shares OutstandingRH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
RH Yearly Total Debt VS Total AssetsRH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 1.18, we must say that RH is in the distress zone and has some risk of bankruptcy.
  • RH has a Altman-Z score of 1.18. This is in the lower half of the industry: RH underperforms 63.41% 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 (25.66) which is in line with its industry peers.
  • A Debt/Equity ratio of 944.39 is on the high side and indicates that RH has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 944.39, RH is doing worse than 79.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 944.39
Debt/FCF 25.66
Altman-Z 1.18
ROIC/WACC1.11
WACC7.45%
RH Yearly LT Debt VS Equity VS FCFRH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 1.19 indicates that RH should not have too much problems paying its short term obligations.
  • RH has a worse Current ratio (1.19) than 60.16% of its industry peers.
  • 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.
  • Looking at the Quick ratio, with a value of 0.26, RH is doing worse than 78.05% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.26
RH Yearly Current Assets VS Current LiabilitesRH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. RH Growth Analysis

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.
  • RH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.46% yearly.
  • 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 45.55% on average over the next years. This is a very strong growth
  • RH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y36.4%
EPS Next 2Y41.72%
EPS Next 3Y40.05%
EPS Next 5Y45.55%
Revenue Next Year8.46%
Revenue Next 2Y8.71%
Revenue Next 3Y8.5%
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.
RH Yearly Revenue VS EstimatesRH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B
RH Yearly EPS VS EstimatesRH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20 40 60

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6

4. RH Valuation Analysis

4.1 Price/Earnings Ratio

  • RH is valuated rather expensively with a Price/Earnings ratio of 20.28.
  • RH's Price/Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 67.48% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of RH to the average of the S&P500 Index (25.50), we can say RH is valued slightly cheaper.
  • RH is valuated reasonably with a Price/Forward Earnings ratio of 11.98.
  • RH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 77.24% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.67. RH is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.28
Fwd PE 11.98
RH Price Earnings VS Forward Price EarningsRH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as RH.
  • Based on the Price/Free Cash Flow ratio, RH is valued a bit cheaper than 66.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.36
EV/EBITDA 11.16
RH Per share dataRH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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 has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as RH's earnings are expected to grow with 40.05% in the coming years.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y41.72%
EPS Next 3Y40.05%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. RH Dividend Analysis

5.1 Amount

  • RH does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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RH Fundamentals: All Metrics, Ratios and Statistics

RH

NYSE:RH (3/24/2026, 8:04:00 PM)

After market: 130.74 +1.96 (+1.52%)

128.78

-1.39 (-1.07%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-11
Earnings (Next)06-10
Inst Owners94.65%
Inst Owner Change9.63%
Ins Owners18.49%
Ins Owner Change0.17%
Market Cap2.42B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target211.4 (64.16%)
Short Float %24.94%
Short Ratio3.51
Dividend
Industry RankSector 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)5.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 20.28
Fwd PE 11.98
P/S 0.71
P/FCF 19.36
P/OCF 7.17
P/B 722.8
P/tB N/A
EV/EBITDA 11.16
EPS(TTM)6.35
EY4.93%
EPS(NY)10.75
Fwd EY8.34%
FCF(TTM)6.65
FCFY5.17%
OCF(TTM)17.97
OCFY13.95%
SpS181.54
BVpS0.18
TBVpS-11.72
PEG (NY)0.56
PEG (5Y)N/A
Graham Number5.05
Profitability
Industry RankSector 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 RankSector 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 1.18
F-Score7
WACC7.45%
ROIC/WACC1.11
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 2Y41.72%
EPS Next 3Y40.05%
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 2Y8.71%
Revenue Next 3Y8.5%
Revenue Next 5Y8.19%
EBIT growth 1Y16.26%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year56.62%
EBIT Next 3Y26.31%
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 Fundamental Analysis 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 6 / 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 20.28 and the Price/Book (PB) ratio is 722.8.