NYSE:RH

Stock Analysis Report

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Market Cap

US$14.4b

Last Updated

2021/06/13 22:34 UTC

Data Sources

Company Financials +

Executive Summary

RH, together with its subsidiaries, operates as a retailer in the home furnishings. More Details


Snowflake Analysis

Solid track record with limited growth.


Similar Companies

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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: RH's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

11.3%

RH

1.1%

US Specialty Retail

0.8%

US Market


1 Year Return

189.4%

RH

77.0%

US Specialty Retail

44.4%

US Market

Return vs Industry: RH exceeded the US Specialty Retail industry which returned 77% over the past year.

Return vs Market: RH exceeded the US Market which returned 44.3% over the past year.


Shareholder returns

RHIndustryMarket
7 Day11.3%1.1%0.8%
30 Day5.0%-0.6%3.0%
90 Day46.7%1.5%4.4%
1 Year189.4%189.4%78.1%77.0%46.7%44.4%
3 Year324.3%324.3%86.5%79.6%60.3%50.4%
5 Year2,526.1%2,526.1%123.4%108.0%128.3%102.8%

Long-Term 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

Valuation

Is RH undervalued compared to its fair value and its price relative to the market?

33.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RH ($682.52) is trading above our estimate of fair value ($570.64)

Significantly Below Fair Value: RH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RH is poor value based on its PE Ratio (33.8x) compared to the US Specialty Retail industry average (15x).

PE vs Market: RH is poor value based on its PE Ratio (33.8x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: RH is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: RH is overvalued based on its PB Ratio (24.1x) compared to the US Specialty Retail industry average (3.4x).


Future Growth

How is RH forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RH's forecast earnings growth (14.6% per year) is above the savings rate (2%).

Earnings vs Market: RH's earnings (14.6% per year) are forecast to grow slower than the US market (15.5% per year).

High Growth Earnings: RH's earnings are forecast to grow, but not significantly.

Revenue vs Market: RH's revenue (7.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: RH's revenue (7.7% 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 (82.7%).


Past Performance

How has RH performed over the past 5 years?

50.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RH has high quality earnings.

Growing Profit Margin: RH's current net profit margins (12.6%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: RH's earnings have grown significantly by 50.5% per year over the past 5 years.

Accelerating Growth: RH's earnings growth over the past year (123.1%) exceeds its 5-year average (50.5% per year).

Earnings vs Industry: RH earnings growth over the past year (123.1%) exceeded the Specialty Retail industry 122.1%.


Return on Equity

High ROE: Whilst RH's Return on Equity (68.24%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is RH's financial position?


Financial Position Analysis

Short Term Liabilities: RH's short term assets ($989.4M) do not cover its short term liabilities ($1.0B).

Long Term Liabilities: RH's short term assets ($989.4M) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: RH's debt to equity ratio (101.9%) is considered high.

Reducing Debt: RH's debt to equity ratio has increased from 61.9% to 101.9% over the past 5 years.

Debt Coverage: RH's debt is well covered by operating cash flow (117%).

Interest Coverage: RH's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet


Dividend

What is RH current dividend yield, its reliability and sustainability?

0.042%

Forecast Dividend Yield


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 recent payouts.

High Dividend: Unable to evaluate RH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Gary Friedman (62 yo)

7.42yrs

Tenure

US$178,007,868

Compensation

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 ($USD178.01M) is above average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RH's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: RH's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9%.


Top Shareholders

Company Information

RH's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RH
  • Ticker: RH
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: US$14.354b
  • Shares outstanding: 21.03m
  • Website: https://www.rh.com

Number of Employees


Location

  • RH
  • 15 Koch Road
  • Corte Madera
  • California
  • 94925
  • United States

Listings


Biography

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, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 22:34
End of Day Share Price2021/06/11 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.