NYSE:RH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with moderate growth potential.

Risks

  • RH has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-2.6%

RH

-1.2%

US Specialty Retail

-0.5%

US Market


1 Year Return

24.4%

RH

-5.4%

US Specialty Retail

0.9%

US Market

RH outperformed the Specialty Retail industry which returned -7.1% over the past year.

RH outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

RHIndustryMarket
7 Day-2.6%-1.2%-0.5%
30 Day18.5%3.9%4.8%
90 Day54.3%4.4%2.3%
1 Year24.4%24.4%-3.8%-5.4%3.1%0.9%
3 Year417.1%417.1%35.0%28.0%45.5%36.0%
5 Year111.6%111.6%52.2%38.6%62.5%44.7%

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 based on future cash flows and its price relative to the stock market?

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

RH's share price is below the future cash flow value, and at a moderate discount (> 20%).

RH's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

RH is overvalued based on earnings compared to the US Specialty Retail industry average.

RH is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

RH is poor value based on expected growth next year.


Price Based on Value of Assets

RH has negative assets, we can't compare the value of its assets to the US Specialty Retail industry average.


Next Steps

Future Growth

How is RH expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

RH's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

RH's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).

RH's revenue growth is positive but not above the United States of America market average.

RH's earnings growth is expected to exceed the United States of America market average.

RH's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

RH is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has RH performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

RH's year on year earnings growth rate has been positive over the past 5 years.

RH's 1-year earnings growth exceeds its 5-year average (60.1% vs 9.7%)

RH's earnings growth has exceeded the US Specialty Retail industry average in the past year (60.1% vs 8.3%).


Return on Equity

It is difficult to establish if RH has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

RH used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

RH has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is RH's financial position?


Financial Position Analysis

RH's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

RH's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

RH has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if RH's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (32.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).


Balance Sheet

High level of physical assets or inventory.

RH has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate RH's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate RH's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as RH has not reported any payouts.

Unable to verify if RH's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as RH has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of RH's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of RH's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Gary Friedman (61yo)

5.7yrs

Tenure

US$3,943,757

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

Gary's remuneration is about average for companies of similar size in United States of America.

Gary's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

55.5yo

Average Age

The tenure for the RH management team is about average.


Board Age and Tenure

5.4yrs

Average Tenure

61yo

Average Age

The tenure for the RH board of directors is about average.


Insider Trading

RH individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,032,05319 Sep 19
David Stanchak
EntityIndividual
Role
Co-President
President and Chief Real Estate & Development Officer
Shares6,000
Max PriceUS$172.01
SellUS$1,327,00518 Sep 19
DeMonty Price
EntityIndividual
Role
Co-President
President and Chief Operating
Shares7,777
Max PriceUS$172.01

Ownership Breakdown


Management Team

  • Gary Friedman (61yo)

    Chairman & CEO

    • Tenure: 5.7yrs
    • Compensation: US$3.94m
  • Glenda Citragno (54yo)

    Chief Accounting Officer & Principal Accounting Officer

    • Tenure: 0.5yrs
  • David Stanchak (61yo)

    President and Chief Real Estate & Development Officer

    • Tenure: 1.8yrs
    • Compensation: US$2.84m
  • Peter Sallick

    CEO & Creative Director of Waterworks

    • Tenure: 0yrs
  • Eri Chaya (46yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$4.83m
  • Cammeron McLaughlin

    Senior Vice President of Investor Relations & Strategy

    • Tenure: 0yrs
  • DeMonty Price (57yo)

    President and Chief Operating

    • Tenure: 3.3yrs
    • Compensation: US$4.62m
  • Prakash Muppirala

    CTO & President of Digital Innovations

    • Tenure: 2.3yrs
  • Jack Preston (45yo)

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Fernando Garcia

    President of Furniture Operations & Home Delivery

    • Tenure: 0yrs

Board Members

  • Keith Belling (61yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$257.98k
  • Leonard Schlesinger (66yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$314.95k
  • Gary Friedman (61yo)

    Chairman & CEO

    • Tenure: 5.7yrs
    • Compensation: US$3.94m
  • Mark Demilio (63yo)

    Lead Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$386.43k
  • Carlos Alberini (63yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$257.98k
  • Hilary Krane (55yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$280.48k
  • Katie Mitic (49yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$280.48k
  • Ali Rowghani (46yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$272.98k
  • Eri Chaya (46yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$4.83m

Company Information

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


Key Information

  • Name: RH
  • Ticker: RH
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: US$3.144b
  • Shares outstanding: 18.68m
  • Website: https://www.restorationhardware.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RHNYSE (New York Stock Exchange)YesNew Common StockUSUSDNov 2012
RS1DB (Deutsche Boerse AG)YesNew Common StockDEEURNov 2012
RH *BMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNNov 2012
0KTFLSE (London Stock Exchange)YesNew Common StockGBUSDNov 2012

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, t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/24 00:15
End of Day Share Price2019/09/23 00:00
Earnings2019/08/03
Annual Earnings2019/02/02


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.