RH (RH) Fundamental Analysis & Valuation

NYSE:RH • US74967X1037

Current stock price

137.51 USD
-0.58 (-0.42%)
At close:
137.01 USD
-0.5 (-0.36%)
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.
  • RH had a positive operating cash flow in each of the past 5 years.
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 2026 0 200M -200M 400M 600M 800M

1.2 Ratios

  • With a Return On Assets value of 2.58%, RH perfoms like the industry average, outperforming 57.72% of the companies in the same industry.
  • RH has a Return On Equity of 205.92%. This is amongst the best in the industry. RH outperforms 100.00% of its industry peers.
  • RH has a better Return On Invested Capital (8.18%) than 71.54% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for RH is significantly below the industry average of 13.57%.
Industry RankSector Rank
ROA 2.58%
ROE 205.92%
ROIC 8.18%
ROA(3y)2.42%
ROA(5y)5.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.28%
ROIC(5y)11.11%
RH Yearly ROA, ROE, ROICRH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500 1K

1.3 Margins

  • RH's Profit Margin of 3.63% is fine compared to the rest of the industry. RH outperforms 69.92% of its industry peers.
  • RH's Profit Margin has declined in the last couple of years.
  • RH has a Operating Margin of 11.16%. This is amongst the best in the industry. RH outperforms 85.37% 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 44.07%, RH is in the better half of the industry, outperforming 71.54% 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 11.16%
PM (TTM) 3.63%
GM 44.07%
OM growth 3Y-17.64%
OM growth 5Y-7.4%
PM growth 3Y-37.31%
PM growth 5Y-17.58%
GM growth 3Y-4.42%
GM growth 5Y-1.08%
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 2026 0 10 20 30 40 50

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2

2. RH Health Analysis

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.
  • Compared to 1 year ago, RH has more shares outstanding
  • The number of shares outstanding for RH has been reduced compared to 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 2026 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 2026 1B 2B 3B 4B 5B

2.2 Solvency

  • Based on the Altman-Z score of 1.23, we must say that RH is in the distress zone and has some risk of bankruptcy.
  • RH's Altman-Z score of 1.23 is on the low side compared to the rest of the industry. RH is outperformed by 66.67% of its industry peers.
  • RH has a debt to FCF ratio of 12.65. This is a negative value and a sign of low solvency as RH would need 12.65 years to pay back of all of its debts.
  • RH has a Debt to FCF ratio of 12.65. This is comparable to the rest of the industry: RH outperforms 51.22% of its industry peers.
  • RH has a Debt/Equity ratio of 51.28. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 51.28, RH is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 51.28
Debt/FCF 12.65
Altman-Z 1.23
ROIC/WACC1.12
WACC7.27%
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 2026 0 1B 2B 3B

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: 61.79% 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.
  • The Quick ratio of RH (0.31) is worse than 74.80% of its industry peers.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.31
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 2026 1B 2B 3B

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6

3. RH Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 17.76% over the past year.
  • Measured over the past years, RH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.42% on average per year.
  • The Revenue has grown by 8.14% in the past year. This is quite good.
  • Measured over the past years, RH shows a small growth in Revenue. The Revenue has been growing by 3.84% on average per year.
EPS 1Y (TTM)17.76%
EPS 3Y-36.33%
EPS 5Y-18.42%
EPS Q2Q%-3.16%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y-1.42%
Revenue growth 5Y3.84%
Sales Q2Q%3.72%

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 45.81% on average per year.
  • The Revenue is expected to grow by 8.14% on average over the next years. This is quite good.
EPS Next Y4.63%
EPS Next 2Y28.03%
EPS Next 3Y36.18%
EPS Next 5Y45.81%
Revenue Next Year4.4%
Revenue Next 2Y6.89%
Revenue Next 3Y7.19%
Revenue Next 5Y8.14%

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.
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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5

4. RH Valuation Analysis

4.1 Price/Earnings Ratio

  • RH is valuated rather expensively with a Price/Earnings ratio of 21.83.
  • 66.67% of the companies in the same industry are more expensive than RH, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, RH is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 20.86, which indicates a rather expensive current 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 60.98% of the companies listed in the same industry.
  • RH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.24.
Industry RankSector Rank
PE 21.83
Fwd PE 20.86
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

  • RH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RH is cheaper than 60.16% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, RH is valued cheaply inside the industry as 81.30% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.39
EV/EBITDA 10.73
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 36.18% in the coming years.
PEG (NY)4.71
PEG (5Y)N/A
EPS Next 2Y28.03%
EPS Next 3Y36.18%

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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 (4/24/2026, 8:06:19 PM)

After market: 137.01 -0.5 (-0.36%)

137.51

-0.58 (-0.42%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-01
Earnings (Next)06-10
Inst Owners94.5%
Inst Owner Change-0.06%
Ins Owners18.44%
Ins Owner Change0.57%
Market Cap2.59B
Revenue(TTM)3.44B
Net Income(TTM)124.79M
Analysts70
Price Target154.34 (12.24%)
Short Float %31.9%
Short Ratio3.55
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)-28.09%
Min EPS beat(2)-32.99%
Max EPS beat(2)-23.18%
EPS beat(4)1
Avg EPS beat(4)43.86%
Min EPS beat(4)-32.99%
Max EPS beat(4)242.76%
EPS beat(8)2
Avg EPS beat(8)-8.06%
EPS beat(12)4
Avg EPS beat(12)-17.81%
EPS beat(16)7
Avg EPS beat(16)-9.76%
Revenue beat(2)0
Avg Revenue beat(2)-4.39%
Min Revenue beat(2)-5.88%
Max Revenue beat(2)-2.9%
Revenue beat(4)0
Avg Revenue beat(4)-3.92%
Min Revenue beat(4)-5.88%
Max Revenue beat(4)-2.9%
Revenue beat(8)0
Avg Revenue beat(8)-3.56%
Revenue beat(12)0
Avg Revenue beat(12)-3.51%
Revenue beat(16)2
Avg Revenue beat(16)-2.84%
PT rev (1m)-26.99%
PT rev (3m)-23.17%
EPS NQ rev (1m)-514.79%
EPS NQ rev (3m)-488.48%
EPS NY rev (1m)-38.66%
EPS NY rev (3m)-38.64%
Revenue NQ rev (1m)-10.21%
Revenue NQ rev (3m)-10.32%
Revenue NY rev (1m)-4.31%
Revenue NY rev (3m)-4.26%
Valuation
Industry RankSector Rank
PE 21.83
Fwd PE 20.86
P/S 0.75
P/FCF 10.39
P/OCF 5.73
P/B 42.73
P/tB N/A
EV/EBITDA 10.73
EPS(TTM)6.3
EY4.58%
EPS(NY)6.59
Fwd EY4.79%
FCF(TTM)13.24
FCFY9.63%
OCF(TTM)24.02
OCFY17.47%
SpS182.66
BVpS3.22
TBVpS-8.68
PEG (NY)4.71
PEG (5Y)N/A
Graham Number21.3586 (-84.47%)
Profitability
Industry RankSector Rank
ROA 2.58%
ROE 205.92%
ROCE 9.83%
ROIC 8.18%
ROICexc 8.26%
ROICexgc 8.77%
OM 11.16%
PM (TTM) 3.63%
GM 44.07%
FCFM 7.25%
ROA(3y)2.42%
ROA(5y)5.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)8.28%
ROIC(5y)11.11%
ROICexc(3y)8.45%
ROICexc(5y)15.87%
ROICexgc(3y)9.02%
ROICexgc(5y)17.23%
ROCE(3y)9.95%
ROCE(5y)13.36%
ROICexgc growth 3Y-26.5%
ROICexgc growth 5Y-17.78%
ROICexc growth 3Y-26.08%
ROICexc growth 5Y-16.78%
OM growth 3Y-17.64%
OM growth 5Y-7.4%
PM growth 3Y-37.31%
PM growth 5Y-17.58%
GM growth 3Y-4.42%
GM growth 5Y-1.08%
F-Score6
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 51.28
Debt/FCF 12.65
Debt/EBITDA 5.84
Cap/Depr 136.66%
Cap/Sales 5.9%
Interest Coverage 1.77
Cash Conversion 84.95%
Profit Quality 199.78%
Current Ratio 1.19
Quick Ratio 0.31
Altman-Z 1.23
F-Score6
WACC7.27%
ROIC/WACC1.12
Cap/Depr(3y)180.1%
Cap/Depr(5y)178.66%
Cap/Sales(3y)7.35%
Cap/Sales(5y)6.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.76%
EPS 3Y-36.33%
EPS 5Y-18.42%
EPS Q2Q%-3.16%
EPS Next Y4.63%
EPS Next 2Y28.03%
EPS Next 3Y36.18%
EPS Next 5Y45.81%
Revenue 1Y (TTM)8.14%
Revenue growth 3Y-1.42%
Revenue growth 5Y3.84%
Sales Q2Q%3.72%
Revenue Next Year4.4%
Revenue Next 2Y6.89%
Revenue Next 3Y7.19%
Revenue Next 5Y8.14%
EBIT growth 1Y22.57%
EBIT growth 3Y-18.81%
EBIT growth 5Y-3.84%
EBIT Next Year40.36%
EBIT Next 3Y24.48%
EBIT Next 5Y25.55%
FCF growth 1Y216.66%
FCF growth 3Y2.71%
FCF growth 5Y-8.55%
OCF growth 1Y2545.46%
OCF growth 3Y3.86%
OCF growth 5Y-2.02%

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 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 6 / 10.


What is the financial health of RH (RH) stock?

The financial health rating of RH (RH) is 2 / 10.