RH (RH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RH - US74967X1037 - Common Stock
222 USD
+3.82 (+1.75%)
Taking everything into account, RH scores 4 out of 10 in our fundamental rating. RH was compared to 122 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 has a correct valuation and a medium 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.
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 has a Return On Assets of 2.29%. This is comparable to the rest of the industry: RH outperforms 56.56% of its industry peers.
RH has a better Return On Equity (3285.39%) than 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 68.85% 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 12.24%.
| 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
With a decent Profit Margin value of 3.22%, RH is doing good in the industry, outperforming 69.67% of the companies in the same industry.
In the last couple of years the Profit Margin of RH has declined.
RH has a better Operating Margin (10.49%) than 84.43% of its industry peers.
In the last couple of years the Operating Margin of RH has declined.
The Gross Margin of RH (44.50%) is better than 70.49% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RH is still creating some value.
Compared to 1 year ago, RH has more shares outstanding
Compared to 5 years ago, RH has less shares outstanding
RH has a better debt/assets ratio than last year.
2.2 Solvency
RH has an Altman-Z score of 1.39. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
RH has a Altman-Z score of 1.39. This is in the lower half of the industry: RH underperforms 66.39% 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.
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.
With a Debt to Equity ratio value of 944.39, RH is not doing good in the industry: 81.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.8
WACC10.3%
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's Current ratio of 1.19 is on the low side compared to the rest of the industry. RH is outperformed by 61.48% 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 80.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.43% 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 -14.46% on average per year.
The Revenue has grown by 9.74% in the past year. This is quite good.
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
Based on estimates for the next years, RH will show a very strong growth in Earnings Per Share. The EPS will grow by 45.55% on average per year.
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 Y39.78%
EPS Next 2Y42.75%
EPS Next 3Y39.79%
EPS Next 5Y45.55%
Revenue Next Year8.46%
Revenue Next 2Y8.68%
Revenue Next 3Y8.41%
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
With a Price/Earnings ratio of 34.96, RH can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as RH.
RH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
With a Price/Forward Earnings ratio of 20.36, RH is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RH indicates a somewhat cheap valuation: RH is cheaper than 64.75% 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 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 20.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RH.
RH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RH is cheaper than 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.31 | ||
| EV/EBITDA | 14.51 |
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 39.79% in the coming years.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y42.75%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
No dividends for RH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:RH (1/13/2026, 3:15:18 PM)
222
+3.82 (+1.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner Change0.31%
Ins Owners18.46%
Ins Owner Change0.47%
Market Cap4.16B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target200.88 (-9.51%)
Short Float %24.25%
Short Ratio3.66
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)-21.04%
PT rev (3m)-23.17%
EPS NQ rev (1m)-38.9%
EPS NQ rev (3m)-38.9%
EPS NY rev (1m)-19.47%
EPS NY rev (3m)-19.47%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)-0.64%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.96 | ||
| Fwd PE | 20.36 | ||
| P/S | 1.22 | ||
| P/FCF | 33.31 | ||
| P/OCF | 12.34 | ||
| P/B | 1244.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.51 |
EPS(TTM)6.35
EY2.86%
EPS(NY)10.9
Fwd EY4.91%
FCF(TTM)6.66
FCFY3%
OCF(TTM)17.99
OCFY8.11%
SpS181.83
BVpS0.18
TBVpS-11.74
PEG (NY)0.88
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 | 1.39 |
F-Score7
WACC10.3%
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 Y39.78%
EPS Next 2Y42.75%
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 2Y8.68%
Revenue Next 3Y8.41%
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 34.96 and the Price/Book (PB) ratio is 1244.02.