(RH) RH - Overview
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NYSE (USA) | Market Cap: 2.328m USD | Total Return: -26.2% in 12m
Avg Turnover: 102M
EPS Trend: -38.9%
Qual. Beats: -1
Rev. Trend: 33.2%
Qual. Beats: -1
Warnings
High Debt/EBITDA (10.2) with thin interest coverage (1.7)
Altman Z'' 0.46 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
RH is a luxury lifestyle brand and retailer operating across North America and Europe. The company manages a diverse portfolio through three primary segments: RH Segment, Waterworks, and Real Estate. Its product catalog spans furniture, lighting, textiles, and specialized collections for children and outdoor spaces.
The business model utilizes a multi-channel distribution strategy, integrating large-scale physical galleries, hospitality experiences, and digital platforms. Unlike traditional retailers, RH employs a membership model that incentivizes brand loyalty through consistent pricing rather than frequent promotional discounting. The home furnishings industry is highly cyclical and sensitive to fluctuations in the luxury housing market and interest rate environments.
Investors should consult ValueRay for a deeper analysis of the companys valuation metrics.
Founded in 1980 and formerly known as Restoration Hardware, the firm has transitioned from a hardware-focused provider to a high-end design platform. It reaches customers through interior design studios, trade channels, and its signature Sourcebooks.
- Mortgage rate fluctuations directly impact luxury residential real estate and furniture demand
- International gallery expansion drives long term revenue growth and market share gains
- Product margin performance remains sensitive to global supply chain and freight costs
- High income consumer spending patterns dictate premium home furnishings sales volume
- Strategic pivot toward luxury hospitality services influences overall brand valuation multiples
| Net Income: 124.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 9.85 > 1.0 |
| NWC/Revenue: 5.15% < 20% (prev 11.19%; Δ -6.05% < -1%) |
| CFO/TA 0.09 > 3% & CFO 452.2m > Net Income 124.8m |
| Net Debt (5.48b) to EBITDA (539.0m): 10.17 < 3 |
| Current Ratio: 1.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (19.7m) vs 12m ago -1.89% < -2% |
| Gross Margin: 44.07% > 18% (prev 0.44%; Δ 4.36k% > 0.5%) |
| Asset Turnover: 73.26% > 50% (prev 69.83%; Δ 3.42% > 0%) |
| Interest Coverage Ratio: 1.71 > 6 (EBITDA TTM 539.0m / Interest Expense TTM 227.8m) |
| A: 0.04 (Total Current Assets 1.11b - Total Current Liabilities 930.6m) / Total Assets 4.84b |
| B: -0.08 (Retained Earnings -386.1m / Total Assets 4.84b) |
| C: 0.08 (EBIT TTM 390.5m / Avg Total Assets 4.70b) |
| D: -0.07 (Book Value of Equity -349.9m / Total Liabilities 4.78b) |
| Altman-Z'' = 0.46 = B |
| DSRI: 0.98 (Receivables 120.9m/114.4m, Revenue 3.44b/3.18b) |
| GMI: 1.01 (GM 44.07% / 44.48%) |
| AQI: 1.11 (AQ_t 0.16 / AQ_t-1 0.14) |
| SGI: 1.08 (Revenue 3.44b / 3.18b) |
| TATA: -0.07 (NI 124.8m - CFO 452.2m) / TA 4.84b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 139.08 with a total of 1,036,652 shares traded.
Over the past week, the price has changed by +10.76%,
over one month by -1.21%,
over three months by -27.96% and
over the past year by -26.21%.
RH has received a consensus analysts rating of 3.70. Therefore, it is recommended to hold RH.
- StrongBuy: 6
- Buy: 4
- Hold: 8
- Sell: 2
- StrongSell: 0
| Analysts Target Price | 157.4 | 13.2% |
P/E Forward = 17.7936
P/S = 0.6768
P/B = 41.7595
P/EG = 0.6947
Revenue TTM = 3.44b USD
EBIT TTM = 390.5m USD
EBITDA TTM = 539.0m USD
Long Term Debt = 2.39b USD (from longTermDebt, last quarter)
Short Term Debt = 156.5m USD (from shortTermDebt, last quarter)
Debt = 5.52b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.56b
Net Debt = 5.48b USD (calculated: Debt 5.52b - CCE 41.2m)
Enterprise Value = 7.81b USD (2.33b + Debt 5.52b - CCE 41.2m)
Interest Coverage Ratio = 1.71 (Ebit TTM 390.5m / Interest Expense TTM 227.8m)
EV/FCF = 31.29x (Enterprise Value 7.81b / FCF TTM 249.6m)
FCF Yield = 3.20% (FCF TTM 249.6m / Enterprise Value 7.81b)
FCF Margin = 7.26% (FCF TTM 249.6m / Revenue TTM 3.44b)
Net Margin = 3.63% (Net Income TTM 124.8m / Revenue TTM 3.44b)
Gross Margin = 44.07% ((Revenue TTM 3.44b - Cost of Revenue TTM 1.92b) / Revenue TTM)
Gross Margin QoQ = 42.89% (prev 44.10%)
Tobins Q-Ratio = 1.62 (Enterprise Value 7.81b / Total Assets 4.84b)
Interest Expense / Debt = 4.12% (Interest Expense 227.8m / Debt 5.52b)
Taxrate = 34.31% (15.0m / 43.8m)
NOPAT = 256.5m (EBIT 390.5m * (1 - 34.31%))
Current Ratio = 1.19 (Total Current Assets 1.11b / Total Current Liabilities 930.6m)
Debt / Equity = 91.17 (Debt 5.52b / totalStockholderEquity, last quarter 60.6m)
Debt / EBITDA = 10.17 (Net Debt 5.48b / EBITDA 539.0m)
Debt / FCF = 21.97 (Net Debt 5.48b / FCF TTM 249.6m)
Total Stockholder Equity = -21.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.66% (Net Income 124.8m / Total Assets 4.84b)
RoE = 34.27% (Net Income TTM 124.8m / Total Stockholder Equity 364.1m)
RoCE = 14.18% (EBIT 390.5m / Capital Employed (Equity 364.1m + L.T.Debt 2.39b))
RoIC = 6.32% (NOPAT 256.5m / Invested Capital 4.06b)
WACC = 6.41% (E(2.33b)/V(7.85b) * Re(15.20%) + D(5.52b)/V(7.85b) * Rd(4.12%) * (1-Tc(0.34)))
Discount Rate = 15.20% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 2.22 | Cagr: 3.17%
[DCF] Terminal Value 75.44% ; FCFF base≈249.6m ; Y1≈250.7m ; Y5≈265.5m
[DCF] Fair Price = N/A (negative equity: EV 4.13b - Net Debt 5.48b = -1.35b; debt exceeds intrinsic value)
EPS Correlation: -38.90 | EPS CAGR: -23.69% | SUE: -1.52 | # QB: -1
Revenue Correlation: 33.18 | Revenue CAGR: 1.94% | SUE: -2.10 | # QB: -1
EPS current Quarter (2026-07-31): EPS=2.11 | Chg30d=-0.58% | Revisions=-75% | Analysts=16
EPS current Year (2027-01-31): EPS=5.26 | Chg30d=-0.57% | Revisions=-81% | GrowthEPS=-16.4% | GrowthRev=+5.6%
EPS next Year (2028-01-31): EPS=9.54 | Chg30d=-0.81% | Revisions=-73% | GrowthEPS=+81.5% | GrowthRev=+9.2%
[Analyst] Revisions Ratio: -81%