RH, together with its subsidiaries, operates as a retailer in the home furnishings. More Details
Reasonable growth potential with acceptable track record.
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 +/- 6% a week.
Volatility Over Time: RH's weekly volatility has decreased from 11% to 6% over the past year.
7 Day Return
US Specialty Retail
1 Year Return
US Specialty Retail
Return vs Industry: RH exceeded the US Specialty Retail industry which returned 33.6% over the past year.
Return vs Market: RH exceeded the US Market which returned 19.6% over the past year.
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
6 hours ago | Simply Wall StHow Should Investors Feel About RH's (NYSE:RH) CEO Remuneration?
2 weeks ago | Simply Wall StBoasting A 71% Return On Equity, Is RH (NYSE:RH) A Top Quality Stock?
4 weeks ago | Simply Wall StIntroducing RH (NYSE:RH), The Stock That Soared 473% In The Last Five Years
Is RH undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RH ($507.36) is trading above our estimate of fair value ($463.23)
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 (46.7x) compared to the US Specialty Retail industry average (19.5x).
PE vs Market: RH is poor value based on its PE Ratio (46.7x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: RH is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: RH is overvalued based on its PB Ratio (33.9x) compared to the US Specialty Retail industry average (2.8x).
How is RH forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RH's forecast earnings growth (26.7% per year) is above the savings rate (2%).
Earnings vs Market: RH's earnings (26.7% per year) are forecast to grow faster than the US market (21.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RH's revenue (8.3% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: RH's revenue (8.3% 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 (90.5%).
How has RH performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RH has a large one-off loss of $172.3M impacting its October 31 2020 financial results.
Growing Profit Margin: RH's current net profit margins (7.8%) are higher than last year (6.7%).
Past Earnings Growth Analysis
Earnings Trend: RH's earnings have grown significantly by 38% per year over the past 5 years.
Accelerating Growth: RH's earnings growth over the past year (17.5%) is below its 5-year average (38% per year).
Earnings vs Industry: RH earnings growth over the past year (17.5%) exceeded the Specialty Retail industry 15.3%.
Return on Equity
High ROE: Whilst RH's Return on Equity (70.76%) is outstanding, this metric is skewed due to their high level of debt.
How is RH's financial position?
Financial Position Analysis
Short Term Liabilities: RH's short term assets ($734.9M) do not cover its short term liabilities ($882.6M).
Long Term Liabilities: RH's short term assets ($734.9M) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: RH's debt to equity ratio (226.5%) is considered high.
Reducing Debt: RH's debt to equity ratio has increased from 63.3% to 226.5% over the past 5 years.
Debt Coverage: RH's debt is well covered by operating cash flow (70.7%).
Interest Coverage: RH's interest payments on its debt are well covered by EBIT (7.2x coverage).
What is RH current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RH's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RH's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RH's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gary Friedman (62 yo)
Mr. Gary G. Friedman has been the Chairman and Chief Executive Officer of Restoration Hardware Holdings, Inc. (now RH) since July 2, 2013 and January 31, 2014 respectively. Mr. Friedman is Founder of Hiera...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD4.01M) is below average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
|Chairman & CEO||7yrs||US$4.01m||9.08% |
|President and Chief Operating||4.67yrs||US$4.05m||0.28% |
|President and Chief Real Estate & Development Officer||3.17yrs||US$5.54m||0.11% |
|Chief Financial Officer||1.83yrs||US$5.60m||0.048% |
|Chief Accounting Officer & Principal Accounting Officer||1.83yrs||no data||0.0037% |
|CTO & President of Digital Innovations||3.67yrs||no data||no data|
|Senior Vice President of Investor Relations & Strategy||no data||no data||no data|
|President of Furniture Operations & Home Delivery||no data||no data||no data|
|CEO & Creative Director of Waterworks||no data||no data||no data|
Experienced Management: RH's management team is considered experienced (3.7 years average tenure).
|Chairman & CEO||7yrs||US$4.01m||9.08% |
|Independent Director||6.75yrs||US$339.47k||0.064% |
|Lead Independent Director||4.83yrs||US$419.47k||0.21% |
|Independent Director||10.58yrs||US$264.47k||0.22% |
|Independent Director||4.58yrs||US$289.47k||0.035% |
|Independent Director||7.25yrs||US$289.47k||0.048% |
|Independent Director||6yrs||US$279.47k||0.041% |
Experienced Board: RH's board of directors are considered experienced (6.8 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.4%.
RH's company bio, employee growth, exchange listings and data sources
- Name: RH
- Ticker: RH
- Exchange: NYSE
- Founded: 2011
- Industry: Homefurnishing Retail
- Sector: Retail
- Market Cap: US$10.351b
- Shares outstanding: 20.40m
- 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|
|RS1||XTRA (XETRA Trading Platform)||Yes||New Common Stock||DE||EUR||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, a...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/01/17 23:50|
|End of Day Share Price||2021/01/15 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.