RH (RH) Stock Fundamental Analysis
NYSE:RH - New York Stock Exchange, Inc. - US74967X1037 - Common Stock
RH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 119 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RH had positive earnings in the past year.
RH had a negative operating cash flow in the past year.
In the past 5 years RH has always been profitable.
Each year in the past 5 years RH had a positive operating cash flow.
1.2 Ratios
RH's Return On Assets of 1.57% is in line compared to the rest of the industry. RH outperforms 55.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.16%, RH is in the better half of the industry, outperforming 62.93% of the companies in the same industry.
RH had an Average Return On Invested Capital over the past 3 years of 13.39%. This is in line with the industry average of 12.38%.
The 3 year average ROIC (13.39%) for RH is well above the current ROIC(7.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | N/A | ||
| ROIC | 7.16% |
ROA(3y)8.49%
ROA(5y)8.77%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.39%
ROIC(5y)15.93%
1.3 Margins
With a decent Profit Margin value of 2.25%, RH is doing good in the industry, outperforming 60.34% of the companies in the same industry.
In the last couple of years the Profit Margin of RH has declined.
Looking at the Operating Margin, with a value of 9.90%, RH belongs to the top of the industry, outperforming 83.62% of the companies in the same industry.
RH's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.20%, RH is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
In the last couple of years the Gross Margin of RH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.9% | ||
| PM (TTM) | 2.25% | ||
| GM | 44.2% |
OM growth 3Y-8.97%
OM growth 5Y3.44%
PM growth 3Y-23.86%
PM growth 5Y-4.91%
GM growth 3Y-0.49%
GM growth 5Y3.12%
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.
Compared to 1 year ago, RH has less shares outstanding
RH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RH has a worse debt to assets ratio.
2.2 Solvency
RH has an Altman-Z score of 1.95. This is not the best score and indicates that RH is in the grey zone with still only limited risk for bankruptcy at the moment.
RH has a Altman-Z score (1.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.95 |
ROIC/WACC0.68
WACC10.5%
2.3 Liquidity
RH has a Current Ratio of 1.43. 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 (1.43) is comparable to the rest of the industry.
A Quick Ratio of 0.33 indicates that RH may have some problems paying its short term obligations.
RH has a Quick ratio of 0.33. This is in the lower half of the industry: RH underperforms 68.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
RH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.62%.
Measured over the past years, RH shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.51% on average per year.
RH shows a small growth in Revenue. In the last year, the Revenue has grown by 1.41%.
Measured over the past years, RH shows a small growth in Revenue. The Revenue has been growing by 3.87% on average per year.
EPS 1Y (TTM)-73.62%
EPS 3Y-28.26%
EPS 5Y-4.51%
EPS Q2Q%1494.47%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y2.07%
Revenue growth 5Y3.87%
Sales Q2Q%8.05%
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 38.91% on average per year.
RH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.77% yearly.
EPS Next Y-8.4%
EPS Next 2Y41.94%
EPS Next 3Y42.53%
EPS Next 5Y38.91%
Revenue Next Year4.3%
Revenue Next 2Y9.12%
Revenue Next 3Y10.1%
Revenue Next 5Y8.77%
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
A Price/Earnings ratio of 69.56 indicates a quite expensive valuation of RH.
RH's Price/Earnings ratio is in line with the industry average.
RH's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 34.52, which means the current valuation is very expensive for RH.
RH's Price/Forward Earnings is on the same level as the industry average.
RH is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.56 | ||
| Fwd PE | 34.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RH indicates a slightly more expensive valuation: RH is more expensive than 63.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.42 |
4.3 Compensation for Growth
RH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RH's earnings are expected to grow with 42.53% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.94%
EPS Next 3Y42.53%
5. Dividend
5.1 Amount
RH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RH
NYSE:RH (1/22/2025, 10:43:45 AM)
447.96
-6.56 (-1.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners92.99%
Inst Owner Change0.54%
Ins Owners18.85%
Ins Owner Change0.29%
Market Cap8.33B
Analysts76
Price Target454.31 (1.42%)
Short Float %11.57%
Short Ratio2.63
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.64%
Min Revenue beat(2)-2.96%
Max Revenue beat(2)-2.31%
Revenue beat(4)0
Avg Revenue beat(4)-3.92%
Min Revenue beat(4)-7.81%
Max Revenue beat(4)-2.31%
Revenue beat(8)0
Avg Revenue beat(8)-3.17%
Revenue beat(12)2
Avg Revenue beat(12)-2.56%
Revenue beat(16)3
Avg Revenue beat(16)-1.49%
PT rev (1m)34.01%
PT rev (3m)37.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.56 | ||
| Fwd PE | 34.52 | ||
| P/S | 2.68 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.42 |
EPS(TTM)6.44
EY1.44%
EPS(NY)12.98
Fwd EY2.9%
FCF(TTM)-21.26
FCFYN/A
OCF(TTM)-4.2
OCFYN/A
SpS167.02
BVpS-9.84
TBVpS-21.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | N/A | ||
| ROCE | 8.62% | ||
| ROIC | 7.16% | ||
| ROICexc | 7.34% | ||
| ROICexgc | 7.83% | ||
| OM | 9.9% | ||
| PM (TTM) | 2.25% | ||
| GM | 44.2% | ||
| FCFM | N/A |
ROA(3y)8.49%
ROA(5y)8.77%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.39%
ROIC(5y)15.93%
ROICexc(3y)21.27%
ROICexc(5y)21%
ROICexgc(3y)23.2%
ROICexgc(5y)23.38%
ROCE(3y)16.12%
ROCE(5y)19.36%
ROICexcg growth 3Y-23.06%
ROICexcg growth 5Y-9.92%
ROICexc growth 3Y-21.8%
ROICexc growth 5Y-8.32%
OM growth 3Y-8.97%
OM growth 5Y3.44%
PM growth 3Y-23.86%
PM growth 5Y-4.91%
GM growth 3Y-0.49%
GM growth 5Y3.12%
F-Score3
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.24 | ||
| Cap/Depr | 242.84% | ||
| Cap/Sales | 10.22% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.95 |
F-Score3
WACC10.5%
ROIC/WACC0.68
Cap/Depr(3y)193.12%
Cap/Depr(5y)156.68%
Cap/Sales(3y)6.22%
Cap/Sales(5y)5.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-73.62%
EPS 3Y-28.26%
EPS 5Y-4.51%
EPS Q2Q%1494.47%
EPS Next Y-8.4%
EPS Next 2Y41.94%
EPS Next 3Y42.53%
EPS Next 5Y38.91%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y2.07%
Revenue growth 5Y3.87%
Sales Q2Q%8.05%
Revenue Next Year4.3%
Revenue Next 2Y9.12%
Revenue Next 3Y10.1%
Revenue Next 5Y8.77%
EBIT growth 1Y-25.68%
EBIT growth 3Y-7.08%
EBIT growth 5Y7.44%
EBIT Next Year28.39%
EBIT Next 3Y27.18%
EBIT Next 5Y20.82%
FCF growth 1Y-222.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-116.81%
OCF growth 3Y-26.09%
OCF growth 5Y-4.12%