RH (RH) Fundamental Analysis & Valuation
NYSE:RH • US74967X1037
Current stock price
136.61 USD
-2 (-1.44%)
At close:
136.381 USD
-0.23 (-0.17%)
After Hours:
This RH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- 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
- RH has a Return On Assets (2.58%) which is comparable to the rest of the industry.
- RH's Return On Equity of 205.92% is amongst the best of 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.
- The Average Return On Invested Capital over the past 3 years for RH is significantly below the industry average of 13.58%.
| Industry Rank | Sector 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%
1.3 Margins
- Looking at the Profit Margin, with a value of 3.63%, RH is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
- In the last couple of years the Profit Margin of RH has declined.
- With an excellent Operating Margin value of 11.16%, RH belongs to the best 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.
- RH's Gross Margin of 44.07% is fine compared to the rest of the industry. RH outperforms 71.54% of its industry peers.
- RH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. RH Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RH is 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.
- RH has a better debt/assets ratio than last year.
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 has a worse Altman-Z score (1.23) than 67.48% 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.
- The Debt to FCF ratio of RH (12.65) is comparable to the rest of the industry.
- A Debt/Equity ratio of 51.28 is on the high side and indicates that RH has dependencies on debt financing.
- RH has a Debt to Equity ratio of 51.28. This is amonst the worse of the industry: RH underperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 51.28 | ||
| Debt/FCF | 12.65 | ||
| Altman-Z | 1.23 |
ROIC/WACC1.12
WACC7.27%
2.3 Liquidity
- A Current Ratio of 1.19 indicates that RH should not have too much problems paying 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.
- Looking at the Quick ratio, with a value of 0.31, RH is doing worse than 74.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.31 |
3. RH Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 17.76% over the past year.
- The earnings per share for RH have been decreasing by -18.42% on average. This is quite bad
- Looking at the last year, RH shows a quite strong growth in Revenue. The Revenue has grown by 8.14% in the last year.
- The Revenue has been growing slightly by 3.84% on average over the past years.
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.
4. RH Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.68, the valuation of RH can be described as rather expensive.
- 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 27.79.
- Based on the Price/Forward Earnings ratio of 20.72, the valuation of RH can be described as rather expensive.
- RH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RH is cheaper than 61.79% of the companies in the same industry.
- RH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 38.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 20.72 |
4.2 Price Multiples
- RH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RH is cheaper than 60.98% of the companies in the same industry.
- RH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RH is cheaper than 82.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.32 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- RH has a very decent profitability rating, which may justify a higher PE ratio.
- RH's earnings are expected to grow with 36.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.68
PEG (5Y)N/A
EPS Next 2Y28.03%
EPS Next 3Y36.18%
5. RH Dividend Analysis
5.1 Amount
- RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
RH Fundamentals: All Metrics, Ratios and Statistics
136.61
-2 (-1.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-01 2026-04-01/bmo
Earnings (Next)06-10 2026-06-10
Inst Owners94.5%
Inst Owner Change-0.06%
Ins Owners18.44%
Ins Owner Change0.57%
Market Cap2.57B
Revenue(TTM)3.44B
Net Income(TTM)124.79M
Analysts70
Price Target154.34 (12.98%)
Short Float %31.9%
Short Ratio3.55
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)-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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 20.72 | ||
| P/S | 0.75 | ||
| P/FCF | 10.32 | ||
| P/OCF | 5.69 | ||
| P/B | 42.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.75 |
EPS(TTM)6.3
EY4.61%
EPS(NY)6.59
Fwd EY4.83%
FCF(TTM)13.24
FCFY9.69%
OCF(TTM)24.02
OCFY17.58%
SpS182.66
BVpS3.22
TBVpS-8.68
PEG (NY)4.68
PEG (5Y)N/A
Graham Number21.3586 (-84.37%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 6 / 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.