RH (RH) Fundamental Analysis & Valuation

NYSE:RH • US74967X1037

Current stock price

129.97 USD
-1.99 (-1.51%)
At close:
130.5 USD
+0.53 (+0.41%)
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

  • In the past year RH was profitable.
  • 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 2026 0 200M -200M 400M 600M 800M

1.2 Ratios

  • RH has a Return On Assets (2.58%) which is comparable to the rest of the 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 Return On Invested Capital of 8.18%. This is in the better half of the industry: RH outperforms 70.73% of its industry peers.
  • RH had an Average Return On Invested Capital over the past 3 years of 8.28%. This is below the industry average of 13.24%.
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

  • Looking at the Profit Margin, with a value of 3.63%, RH is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
  • RH's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 11.16%, RH belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
  • In the last couple of years the Operating Margin of RH has declined.
  • With a decent Gross Margin value of 44.07%, RH is doing good in 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 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

  • 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
  • RH has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for RH has been reduced compared to a year ago.
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

  • RH has an Altman-Z score of 1.22. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of RH (1.22) is worse than 69.11% of its industry peers.
  • The Debt to FCF ratio of RH is 12.65, which is on the high side as it means it would take RH, 12.65 years of fcf income to pay off 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 47.97% of its industry peers.
  • A Debt/Equity ratio of 51.28 is on the high side and indicates that RH has dependencies on debt financing.
  • RH has a worse Debt to Equity ratio (51.28) than 82.93% of its industry peers.
Industry RankSector Rank
Debt/Equity 51.28
Debt/FCF 12.65
Altman-Z 1.22
ROIC/WACC1.06
WACC7.68%
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.
  • Looking at the Current ratio, with a value of 1.19, RH is doing worse than 61.79% of the companies in the same industry.
  • 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.
  • With a Quick ratio value of 0.31, RH is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
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

  • RH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.76%, which is quite good.
  • RH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.42% yearly.
  • RH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.14%.
  • RH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.84% yearly.
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 41.96% on average per year.
  • Based on estimates for the next years, RH will show a quite strong growth in Revenue. The Revenue will grow by 8.15% on average per year.
EPS Next Y4.63%
EPS Next 2Y28.03%
EPS Next 3Y29.61%
EPS Next 5Y41.96%
Revenue Next Year4.4%
Revenue Next 2Y6.89%
Revenue Next 3Y7.19%
Revenue Next 5Y8.15%

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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5

4. RH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 20.63, which indicates a rather expensive current valuation of RH.
  • RH's Price/Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 66.67% of the companies in the same industry.
  • RH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.64.
  • A Price/Forward Earnings ratio of 19.72 indicates a rather expensive valuation of RH.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of RH is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. RH is around the same levels.
Industry RankSector Rank
PE 20.63
Fwd PE 19.72
RH Price Earnings VS Forward Price EarningsRH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 cheaply inside the industry as 81.30% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.82
EV/EBITDA 10.51
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 RH does not grow enough to justify the current Price/Earnings ratio.
  • RH has a very decent profitability rating, which may justify a higher PE ratio.
  • RH's earnings are expected to grow with 29.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.46
PEG (5Y)N/A
EPS Next 2Y28.03%
EPS Next 3Y29.61%

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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 (5/1/2026, 8:04:00 PM)

After market: 130.5 +0.53 (+0.41%)

129.97

-1.99 (-1.51%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Industry Strength11.8
Industry Growth36.02
Earnings (Last)04-01
Earnings (Next)06-10
Inst Owners94.5%
Inst Owner Change0.08%
Ins Owners18.44%
Ins Owner Change0.57%
Market Cap2.45B
Revenue(TTM)3.44B
Net Income(TTM)124.79M
Analysts70
Price Target154.34 (18.75%)
Short Float %35.59%
Short Ratio3.87
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)-556.33%
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)-4.29%
Valuation
Industry RankSector Rank
PE 20.63
Fwd PE 19.72
P/S 0.71
P/FCF 9.82
P/OCF 5.41
P/B 40.39
P/tB N/A
EV/EBITDA 10.51
EPS(TTM)6.3
EY4.85%
EPS(NY)6.59
Fwd EY5.07%
FCF(TTM)13.24
FCFY10.19%
OCF(TTM)24.02
OCFY18.48%
SpS182.66
BVpS3.22
TBVpS-8.68
PEG (NY)4.46
PEG (5Y)N/A
Graham Number21.3586 (-83.57%)
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 1.22
F-Score6
WACC7.68%
ROIC/WACC1.06
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 3Y29.61%
EPS Next 5Y41.96%
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 5Y8.15%
EBIT growth 1Y22.57%
EBIT growth 3Y-18.81%
EBIT growth 5Y-3.84%
EBIT Next Year40.36%
EBIT Next 3Y25.75%
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.