(RH) RH - NYSE
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NYSE (USA) | Market Cap: 2.893m USD | Total Return: -21.6% in 12m
Avg Turnover: 139M
EPS Trend: -22.6%
Qual. Beats: -2
Rev. Trend: 74.4%
Qual. Beats: 0
Warnings
High Debt/EBITDA (10.3) with thin interest coverage (1.7)
Altman Z'' 0.44 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
RH is a U.S.-headquartered retailer and lifestyle brand specializing in premium home furnishings, operating galleries, interior design studios, outlets, guesthouses, and showrooms across the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. The company reports through three segments: RH Segment, Waterworks, and Real Estate, and sells its products through an omni-channel mix that includes retail locations, websites, sourcebooks, hospitality, and trade and contract channels. It was founded in 1980, originally as Restoration Hardware Holdings, and rebranded to RH in January 2017.
Within the Consumer Discretionary sector and the Homefurnishing Retail sub-industry, RH differentiates itself from traditional furniture chains by combining a curated, design-led merchandise assortment (furniture, lighting, textiles, bath, décor, and outdoor categories) with a gallery-style store format that emphasizes experience over transactional retail. Its inclusion of a dedicated Real Estate segment is also atypical for the sub-industry and reflects RHs strategy of controlling the development and ownership of its large-format gallery properties rather than relying solely on leased retail space.
- Housing market slowdown pressures luxury furnishings demand
- Gallery expansion and new openings lift core segment revenue
- Import tariffs compress gross margins on overseas goods
| Net Income: 103.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 7.94 > 1.0 |
| NWC/Revenue: 3.71% < 20% (prev 9.83%; Δ -6.12% < -1%) |
| CFO/TA 0.08 > 3% & CFO 410.2m > Net Income 103.1m |
| Net Debt (5.39b) to EBITDA (522.0m): 10.33 < 3 |
| Current Ratio: 1.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (18.8m) vs 12m ago -5.36% < -2% |
| Gross Margin: 43.54% > 18% (prev 44.50%; Δ -0.96% > 0.5%) |
| Asset Turnover: 71.39% > 50% (prev 70.27%; Δ 1.12% > 0%) |
| Interest Coverage Ratio: 1.66 > 6 (EBIT TTM 370.0m / Interest Expense TTM 222.3m) |
| A: 0.03 (Total Current Assets 1.12b - Total Current Liabilities 996.9m) / Total Assets 4.95b |
| B: -0.08 (Retained Earnings -399.8m / Total Assets 4.95b) |
| C: 0.08 (EBIT TTM 370.0m / Avg Total Assets 4.80b) |
| D: 0.01 (Book Value of Equity 56.9m / Total Liabilities 4.89b) |
| Altman-Z'' = 0.44 = B |
| DSRI: 1.22 (Receivables 145.9m/114.5m, Revenue 3.43b/3.27b) |
| GMI: 1.02 (GM 44.50% / 43.54%) |
| AQI: 0.85 (AQ_t 0.12 / AQ_t-1 0.14) |
| SGI: 1.05 (Revenue 3.43b / 3.27b) |
| TATA: -0.06 (NI 103.1m - CFO 410.2m) / TA 4.95b) |
| Beneish M = -2.89 (Cap -4..+1) = A |
As of June 22, 2026, the stock is trading at USD 148.09 with a total of 1,016,500 shares traded.
Over the past week, the price has changed by -7.05%,
over one month by +21.25%,
over three months by +10.10% and
over the past year by -21.58%.
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 | 165.1 | 11.5% |
P/E Trailing = 29.6015
P/E Forward = 20.3252
P/S = 0.8443
P/B = 50.8125
P/EG = 0.7941
Revenue TTM = 3.43b USD
EBIT TTM = 370.0m USD
EBITDA TTM = 522.0m USD
Long Term Debt = 2.39b USD (from longTermDebt, last quarter)
Short Term Debt = 25.0m USD (from shortLongTermDebt, last quarter)
Debt = 5.45b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.60b
Net Debt = 5.39b USD (calculated: Debt 5.45b - CCE 53.8m)
Enterprise Value = 8.29b USD (2.89b + Debt 5.45b - CCE 53.8m)
Interest Coverage Ratio = 1.66 (Ebit TTM 370.0m / Interest Expense TTM 222.3m)
EV/FCF = 37.50x (Enterprise Value 8.29b / FCF TTM 220.9m)
FCF Yield = 2.67% (FCF TTM 220.9m / Enterprise Value 8.29b)
FCF Margin = 6.45% (FCF TTM 220.9m / Revenue TTM 3.43b)
Net Margin = 3.01% (Net Income TTM 103.1m / Revenue TTM 3.43b)
Gross Margin = 43.54% ((Revenue TTM 3.43b - Cost of Revenue TTM 1.93b) / Revenue TTM)
Gross Margin QoQ = 41.39% (prev 42.89%)
Tobins Q-Ratio = 1.67 (Enterprise Value 8.29b / Total Assets 4.95b)
Interest Expense / Debt = 4.08% (Interest Expense 222.3m / Debt 5.45b)
Taxrate = 27.77% (39.8m / 143.3m)
NOPAT = 267.2m (EBIT 370.0m * (1 - 27.77%))
Current Ratio = 1.13 (Total Current Assets 1.12b / Total Current Liabilities 996.9m)
Debt / Equity = 95.67 (Debt 5.45b / totalStockholderEquity, last quarter 56.9m)
Debt / EBITDA = 10.33 (Net Debt 5.39b / EBITDA 522.0m)
Debt / FCF = 24.41 (Net Debt 5.39b / FCF TTM 220.9m)
Total Stockholder Equity = 20.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.15% (Net Income 103.1m / Total Assets 4.95b)
RoE = 515.4% (Net Income TTM 103.1m / Total Stockholder Equity 20.0m)
RoCE = 15.32% (EBIT 370.0m / Capital Employed (Equity 20.0m + L.T.Debt 2.39b))
RoIC = 6.59% (NOPAT 267.2m / Invested Capital 4.05b)
WACC = 7.09% (E(2.89b)/V(8.34b) * Re(14.89%) + D(5.45b)/V(8.34b) * Rd(4.08%) * (1-Tc(0.28)))
Discount Rate = 14.89% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -28.89 | Cagr: -2.40%
[DCF] Terminal Value 75.44% ; FCFF base≈220.9m ; Y1≈221.8m ; Y5≈235.0m
[DCF] Fair Price = N/A (negative equity: EV 3.65b - Net Debt 5.39b = -1.74b; debt exceeds intrinsic value)
EPS Correlation: -22.55 | EPS CAGR: -12.41% | SUE: -4.0 | # QB: -2
Revenue Correlation: 74.42 | Revenue CAGR: 4.30% | SUE: 0.64 | # QB: 0
EPS current Quarter (2026-07-31): EPS=2.07 | Chg30d=-2.25% | Revisions=-75% | Analysts=16
EPS next Quarter (2026-10-31): EPS=3.15 | Chg30d=+12.32% | Revisions=-38% | Analysts=15
EPS current Year (2027-01-31): EPS=4.75 | Chg30d=-9.62% | Revisions=-81% | GrowthEPS=-24.4% | GrowthRev=+5.4%
EPS next Year (2028-01-31): EPS=9.24 | Chg30d=-3.21% | Revisions=-73% | GrowthEPS=+94.3% | GrowthRev=+8.8%
[Analyst] Revisions Ratio: -81%