Rh
Rh Fundamental Analysis
Rh (RH) shows weak financial fundamentals with a PE ratio of 35.49, profit margin of 3.22%, and ROE of -1.41%. The company generates $3.4B in annual revenue with moderate year-over-year growth of 5.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -117.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RH's fundamental strength across five key dimensions:
Efficiency Score
WeakRH struggles to generate sufficient returns from assets.
Valuation Score
WeakRH trades at a premium to fair value.
Growth Score
ModerateRH shows steady but slowing expansion.
Financial Health Score
ModerateRH shows balanced financial health with some risks.
Profitability Score
WeakRH struggles to sustain strong margins.
Key Financial Metrics
Is RH Expensive or Cheap?
P/E Ratio
RH trades at 35.49 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RH's PEG of 14.52 indicates potential overvaluation.
Price to Book
The market values Rh at 1165.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -0.05 times EBITDA. This is generally considered low.
How Well Does RH Make Money?
Net Profit Margin
For every $100 in sales, Rh keeps $3.22 as profit after all expenses.
Operating Margin
Core operations generate 11.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.41 in profit for every $100 of shareholder equity.
ROA
Rh generates $2.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rh generates limited operating cash flow of $337.72M, signaling weaker underlying cash strength.
Free Cash Flow
Rh produces free cash flow of $128.24M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.83 in free cash annually.
FCF Yield
RH converts 3.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
14.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
1165.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1186.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.41
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How RH Stacks Against Its Sector Peers
| Metric | RH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.49 | 25.25 | Worse (Expensive) |
| ROE | -140.97% | 1170.00% | Weak |
| Net Margin | 3.22% | 742.00% | Weak |
| Debt/Equity | 1186.80 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.18 | 9.19 | Neutral |
| ROA | 2.29% | -6467.00% (disorted) | Weak |
RH outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rh's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.01%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-66.08%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-94.80%
Industry Style: Cyclical, Growth, Discretionary
Declining