RH (RH) Stock Fundamental Analysis
USA - NYSE:RH - US74967X1037 - Common Stock
178.81 USD
-6.89 (-3.71%)
180 USD
+1.19 (+0.67%)
Taking everything into account, RH scores 4 out of 10 in our fundamental rating. RH was compared to 119 industry peers in the Specialty Retail industry. There are concerns on the financial health of RH while its profitability can be described as average. RH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RH was profitable.
RH had a positive operating cash flow in the past year.
RH had positive earnings in each of the past 5 years.
In the past 5 years RH always reported a positive cash flow from operatings.
1.2 Ratios
RH has a Return On Assets (2.27%) which is comparable to the rest of the industry.
The Return On Invested Capital of RH (8.46%) is better than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RH is in line with the industry average of 12.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | N/A | ||
| ROIC | 8.46% |
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's Profit Margin of 3.20% is fine compared to the rest of the industry. RH outperforms 69.75% of its industry peers.
In the last couple of years the Profit Margin of RH has declined.
RH has a better Operating Margin (10.68%) than 84.03% of its industry peers.
RH's Operating Margin has declined in the last couple of years.
The Gross Margin of RH (44.61%) is better than 70.59% 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 | 10.68% | ||
| PM (TTM) | 3.2% | ||
| GM | 44.61% |
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.
The number of shares outstanding for RH has been increased compared to 1 year ago.
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.
2.2 Solvency
RH has an Altman-Z score of 1.33. This is a bad value and indicates that RH is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.33, RH is not doing good in the industry: 68.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.83
WACC10.18%
2.3 Liquidity
RH has a Current Ratio of 1.26. This is a normal value and indicates that RH is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RH (1.26) is comparable to the rest of the industry.
A Quick Ratio of 0.26 indicates that RH may have some problems paying its short term obligations.
With a Quick ratio value of 0.26, RH is not doing good in the industry: 83.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 347.80% over the past year.
RH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.46% yearly.
The Revenue has grown by 9.56% 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 3.74% on average per year.
EPS 1Y (TTM)347.8%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%73.37%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 47.65% on average over the next years. This is a very strong growth
RH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.41% yearly.
EPS Next Y73.57%
EPS Next 2Y57.8%
EPS Next 3Y49.48%
EPS Next 5Y47.65%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.48%
Revenue Next 5Y8.41%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.11, RH can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RH is valued a bit cheaper than the industry average as 66.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.57, RH is valued at the same level.
With a Price/Forward Earnings ratio of 13.42, RH is valued correctly.
Based on the Price/Forward Earnings ratio, RH is valued a bit cheaper than the industry average as 72.27% of the companies are valued more expensively.
RH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.5 |
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.
RH's earnings are expected to grow with 49.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y57.8%
EPS Next 3Y49.48%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
178.81
-6.89 (-3.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.63%
Inst Owner Change0.06%
Ins Owners18.49%
Ins Owner Change0.6%
Market Cap3.35B
Revenue(TTM)3.34B
Net Income(TTM)106.83M
Analysts72.86
Price Target261.45 (46.22%)
Short Float %19.55%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)115.8%
Min EPS beat(2)-11.15%
Max EPS beat(2)242.76%
EPS beat(4)1
Avg EPS beat(4)50.63%
Min EPS beat(4)-19.91%
Max EPS beat(4)242.76%
EPS beat(8)2
Avg EPS beat(8)-26.14%
EPS beat(12)5
Avg EPS beat(12)-13.06%
EPS beat(16)8
Avg EPS beat(16)-6.17%
Revenue beat(2)0
Avg Revenue beat(2)-3.45%
Min Revenue beat(2)-3.5%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.7%
Min Revenue beat(4)-4.92%
Max Revenue beat(4)-2.96%
Revenue beat(8)0
Avg Revenue beat(8)-3.89%
Revenue beat(12)1
Avg Revenue beat(12)-3.04%
Revenue beat(16)2
Avg Revenue beat(16)-2.7%
PT rev (1m)-1.18%
PT rev (3m)-1.39%
EPS NQ rev (1m)-35.84%
EPS NQ rev (3m)-47.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.45%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | 13.42 | ||
| P/S | 1 | ||
| P/FCF | N/A | ||
| P/OCF | 19.26 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.5 |
EPS(TTM)7.12
EY3.98%
EPS(NY)13.32
Fwd EY7.45%
FCF(TTM)-2.88
FCFYN/A
OCF(TTM)9.29
OCFY5.19%
SpS177.99
BVpS-2.18
TBVpS-14.1
PEG (NY)0.34
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | N/A | ||
| ROCE | 9.53% | ||
| ROIC | 8.46% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 9.09% | ||
| OM | 10.68% | ||
| PM (TTM) | 3.2% | ||
| GM | 44.61% | ||
| FCFM | N/A |
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-Score8
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 166.49% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 35.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | 1.33 |
F-Score8
WACC10.18%
ROIC/WACC0.83
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)347.8%
EPS 3Y-41.01%
EPS 5Y-14.46%
EPS Q2Q%73.37%
EPS Next Y73.57%
EPS Next 2Y57.8%
EPS Next 3Y49.48%
EPS Next 5Y47.65%
Revenue 1Y (TTM)9.56%
Revenue growth 3Y-5.41%
Revenue growth 5Y3.74%
Sales Q2Q%8.38%
Revenue Next Year9.16%
Revenue Next 2Y9.65%
Revenue Next 3Y9.48%
Revenue Next 5Y8.41%
EBIT growth 1Y38.53%
EBIT growth 3Y-30.35%
EBIT growth 5Y-2.9%
EBIT Next Year70.77%
EBIT Next 3Y35.37%
EBIT Next 5Y26.15%
FCF growth 1Y-120.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-62.12%
OCF growth 3Y-70.44%
OCF growth 5Y-44.98%