RH (RH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RH - US74967X1037 - Common Stock
229.33 USD
+9.89 (+4.51%)
229.902 USD
+0.57 (+0.25%)
Taking everything into account, RH scores 4 out of 10 in our fundamental rating. RH was compared to 121 industry peers in the Specialty Retail industry. While RH is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- Each year in the past 5 years RH has been profitable.
- RH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of RH (2.29%) is comparable to the rest of the industry.
- RH has a Return On Equity of 3285.39%. This is amongst the best in the industry. RH outperforms 100.00% of its industry peers.
- With a decent Return On Invested Capital value of 8.26%, RH is doing good in the industry, outperforming 68.59% of the companies in the same industry.
- RH had an Average Return On Invested Capital over the past 3 years of 10.73%. This is in line with the industry average of 12.37%.
| 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
- RH has a Profit Margin of 3.22%. This is in the better half of the industry: RH outperforms 69.42% of its industry peers.
- RH's Profit Margin has declined in the last couple of years.
- RH's Operating Margin of 10.49% is amongst the best of the industry. RH outperforms 84.30% of its industry peers.
- RH's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 44.50%, RH is doing good in the industry, outperforming 71.07% 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 | 10.49% | ||
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RH is creating some value.
- RH has more shares outstanding than it did 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.
2.2 Solvency
- RH has an Altman-Z score of 1.40. 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 (1.40) is worse than 65.29% of its industry peers.
- RH has a debt to FCF ratio of 25.66. This is a negative value and a sign of low solvency as RH would need 25.66 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 25.66, RH perfoms like the industry average, outperforming 47.11% of the companies in the same industry.
- RH has a Debt/Equity ratio of 944.39. This is a high value indicating a heavy dependency on external financing.
- RH has a worse Debt to Equity ratio (944.39) than 80.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 944.39 | ||
| Debt/FCF | 25.66 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.8
WACC10.34%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that RH should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.19, RH is doing worse than 61.16% 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.
- Looking at the Quick ratio, with a value of 0.26, RH is doing worse than 80.17% of the companies in the same industry.
| 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.
- The earnings per share for RH have been decreasing by -14.46% on average. This is quite bad
- 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 Y36.4%
EPS Next 2Y41.7%
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- The Price/Earnings ratio is 36.11, which means the current valuation is very expensive for RH.
- 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 rather expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 21.35, 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 64.46% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of RH to the average of the S&P500 Index (24.30), we can say RH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as RH.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.41 | ||
| EV/EBITDA | 14.55 |
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.
- The decent profitability rating of RH may justify a higher PE ratio.
- RH's earnings are expected to grow with 39.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y41.7%
EPS Next 3Y39.79%
5. Dividend
5.1 Amount
- RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
229.33
+9.89 (+4.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-11 2025-12-11/amc
Earnings (Next)06-10 2026-06-10
Inst Owners88.19%
Inst Owner Change0.29%
Ins Owners18.46%
Ins Owner Change0.47%
Market Cap4.30B
Revenue(TTM)3.41B
Net Income(TTM)109.93M
Analysts70
Price Target200.88 (-12.41%)
Short Float %25.22%
Short Ratio3.54
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)-5.56%
EPS NQ rev (3m)-38.9%
EPS NY rev (1m)-2.41%
EPS NY rev (3m)-21.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.11 | ||
| Fwd PE | 21.35 | ||
| P/S | 1.26 | ||
| P/FCF | 34.41 | ||
| P/OCF | 12.74 | ||
| P/B | 1285.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.55 |
EPS(TTM)6.35
EY2.77%
EPS(NY)10.74
Fwd EY4.68%
FCF(TTM)6.66
FCFY2.91%
OCF(TTM)17.99
OCFY7.85%
SpS181.83
BVpS0.18
TBVpS-11.74
PEG (NY)0.99
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 | 1.4 |
F-Score7
WACC10.34%
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 Y36.4%
EPS Next 2Y41.7%
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 4 / 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 36.11 and the Price/Book (PB) ratio is 1285.1.