RH, together with its subsidiaries, operates as a retailer in the home furnishings.
Solid track record with moderate growth potential.
Share Price & News
How has RH's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RH has not had significant price volatility in the past 3 months.
7 Day Return
US Specialty Retail
1 Year Return
US Specialty Retail
Return vs Industry: RH exceeded the US Specialty Retail industry which returned 17.7% over the past year.
Return vs Market: RH exceeded the US Market which returned 17.9% over the past year.
Price Volatility Vs. Market
How volatile is RH's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall StThe RH (NYSE:RH) Share Price Is Up 788% And Shareholders Are Delighted
2 weeks ago | Simply Wall StI Ran A Stock Scan For Earnings Growth And RH (NYSE:RH) Passed With Ease
1 month ago | Simply Wall StIs RH (NYSE:RH) Trading At A 31% Discount?
Is RH undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RH ($236.45) is trading below our estimate of fair value ($328.33)
Significantly Below Fair Value: RH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RH is poor value based on its PE Ratio (23.8x) compared to the Specialty Retail industry average (16.9x).
PE vs Market: RH is poor value based on its PE Ratio (23.8x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: RH is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: RH has negative assets, so we can't compare its PB Ratio to the US Specialty Retail industry average.
How is RH forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RH's forecast earnings growth (18.3% per year) is above the savings rate (1.7%).
Earnings vs Market: RH's earnings (18.3% per year) are forecast to grow faster than the US market (14.1% per year).
High Growth Earnings: RH's earnings are forecast to grow, but not significantly.
Revenue vs Market: RH's revenue (7.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: RH's revenue (7.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RH's Return on Equity is forecast to be very high in 3 years time (89.4%).
How has RH performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RH has high quality earnings.
Growing Profit Margin: RH's current net profit margins (7.3%) are higher than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: RH's earnings have grown by 16.4% per year over the past 5 years.
Accelerating Growth: RH's earnings growth over the past year (78.6%) exceeds its 5-year average (16.4% per year).
Earnings vs Industry: RH earnings growth over the past year (78.6%) exceeded the Specialty Retail industry 7.9%.
Return on Equity
High ROE: RH's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
How is RH's financial position?
Financial Position Analysis
Short Term Liabilities: RH has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: RH has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: RH has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: RH's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: RH's debt is well covered by operating cash flow (41.3%).
Interest Coverage: RH's interest payments on its debt are well covered by EBIT (4.1x coverage).
Inventory Level: RH has a high level of physical assets or inventory.
Debt Coverage by Assets: RH has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
What is RH's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate RH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RH's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gary Friedman (61yo)
Mr. Gary G. Friedman has been the Chairman and Chief Executive Officer of Restoration Hardware Holdings, Inc. (now RH) since July 2, 2013 and January 31, 2014 respectively. Mr. Friedman is Founder of Hiera ...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD3.94M) is about average for companies of similar size in the US market ($USD4.87M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
|Chairman & CEO||6.1yrs||US$3.94m||9.76% $438.2m|
|President and Chief Operating||3.8yrs||US$4.62m||0.26% $11.5m|
|President and Chief Real Estate & Development Officer||2.3yrs||US$2.84m||0.084% $3.8m|
|Chief Financial Officer||0.9yrs||no data||0.040% $1.8m|
|Chief Accounting Officer & Principal Accounting Officer||0.9yrs||no data||no data|
|CTO & President of Digital Innovations||2.8yrs||no data||no data|
|Senior Vice President of Investor Relations & Strategy||0yrs||no data||no data|
|President of Furniture Operations & Home Delivery||0yrs||no data||no data|
|CEO & Creative Director of Waterworks||0yrs||no data||no data|
Experienced Management: RH's management team is considered experienced (2.8 years average tenure).
|Chairman & CEO||6.1yrs||US$3.94m||9.76% $438.2m|
|Independent Director||5.8yrs||US$314.95k||0.066% $3.0m|
|Lead Independent Director||3.9yrs||US$386.43k||0.22% $10.0m|
|Independent Director||9.7yrs||US$257.98k||0.24% $10.7m|
|Independent Director||3.7yrs||US$280.48k||0.035% $1.6m|
|Independent Director||6.3yrs||US$280.48k||0.049% $2.2m|
|Independent Director||5.1yrs||US$272.98k||0.042% $1.9m|
Experienced Board: RH's board of directors are considered experienced (5.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RH insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
RH's company bio, employee growth, exchange listings and data sources
- Name: RH
- Ticker: RH
- Exchange: NYSE
- Founded: 1979
- Industry: Homefurnishing Retail
- Sector: Retail
- Market Cap: US$4.492b
- Shares outstanding: 19.00m
- Website: https://www.restorationhardware.com
Number of Employees
- 15 Koch Road
- Corte Madera
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RH||NYSE (New York Stock Exchange)||Yes||New Common Stock||US||USD||Nov 2012|
|RS1||DB (Deutsche Boerse AG)||Yes||New Common Stock||DE||EUR||Nov 2012|
|RH *||BMV (Bolsa Mexicana de Valores)||Yes||New Common Stock||MX||MXN||Nov 2012|
|0KTF||LSE (London Stock Exchange)||Yes||New Common Stock||GB||USD||Nov 2012|
RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, tableware, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, restorationhardware.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com. As of February 2, 2019, it operated a total of 83 retail galleries consisting of 20 design galleries, 43 legacy Galleries, 2 RH Modern Galleries, and 6 RH Baby & Child Galleries throughout the United States and Canada; and 15 Waterworks showrooms in the United States and in the United kingdom, as well as operated 39 outlet stores throughout the United States and Canada. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1979 and is headquartered in Corte Madera, California. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1979 and is headquartered in Corte Madera, California.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/23 02:36|
|End of Day Share Price||2020/02/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.