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RH (RH) stock analysis

RHNYSERetail-Furniture StoresFiscal year ends January 31
Financials through Q2 FY2026, quarter ended Aug 1, 2026Last filing: 10-Q on Sep 10, 2026Score 13/3023% below fair value
$135.90+1.08 (+0.80%)

Close on Nov 11, 2026Market cap $2.57BP/E 24.2Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value4Growth2Performance2Health5Dividend0

Mixed13 of 30 checks passed

RH passes 13 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
4/6
Growth
2/6
Past performance
2/6
Financial health
5/6
Dividend
0/6

What stands out

  • Margin of safety over 20%

    The price is 23.2% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $135.90 is below our fair value estimate of $176.90.

  • No debt

    RH has no borrowings on its latest balance sheet.

  • Earnings growth accelerating

    Net income grew 4.4% over the last twelve months, against a 5-year average of -14.4% a year.

What to watch

  • Earnings shrank over 5 years

    Net income shrank 14.4% a year on average over the last five fiscal years.

  • Revenue growing under 10% a year

    Revenue grew -1.4% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew -31.8% a year over the last three fiscal years.

  • Elevated bankruptcy risk

    The Altman Z-score is 1.14; above 3 is the safe zone and below 1.8 the distress zone.

Valuation4/6

  • P/E below its 5-year median

    RH's P/E of 24.2 is below its own 5-year median of 27.9.

  • P/E above the industry

    RH's P/E of 24.2 is above the Consumer discretionary median of 19.6.

  • EV/EBITDA below its 5-year median

    RH's EV/EBITDA of 4.9 is below its 5-year median of 6.7.

  • P/B above the industry

    RH's price-to-book of 21.38 is above the Consumer discretionary median of 4.85.

  • Trading below fair value

    The share price of $135.90 is below our fair value estimate of $176.90.

  • Margin of safety over 20%

    The price is 23.2% below fair value, more than the 20% cushion we look for.

Growth2/6

  • Revenue growing under 10% a year

    Revenue grew -1.4% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing under 10% a year

    Diluted EPS grew -31.8% a year over the last three fiscal years.

  • Earnings growth accelerating

    Net income grew 4.4% over the last twelve months, against a 5-year average of -14.4% a year.

  • Growing faster than the industry

    Revenue grew 3.3% over the last twelve months; the Consumer discretionary median is 2.2%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin slipping

    Gross margin was 44.3% over the last twelve months, against 44.6% a year earlier.

Past performance2/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity above the industry

    RH's return on equity of 281% is above the Consumer discretionary median of 15.7%.

  • Earnings shrank over 5 years

    Net income shrank 14.4% a year on average over the last five fiscal years.

  • Net margin below its 5-year average

    Net margin was 3.2% over the last twelve months, against a 5-year average of 8.6%.

  • Net margin above the industry

    RH's net margin of 3.2% is above the Consumer discretionary median of 3.1%.

Financial health5/6

  • No debt

    RH has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term assets cover short-term debts

    Current assets are 1.12 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is 1.14; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    RH has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$176.90

The share price is 23% below this estimate.

20%+ below
Near fair value
20%+ above
$135.90Price$176.90Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E23.8×27.9×19.6×$133.7253%
EV/EBITDA8.3×6.7×9.8×$226.2547%
Earnings powerleft out, too far from the others14.9% cost of equity––$32.40–
Fair value$176.90100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 27.9
  • Consumer discretionary median 19.6

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$107.30M
Value traded per 1% price move
$40.49M

Downside

High risk

Typical loss in a bad month
34.4%
Volatility (annualized)
62%
Sharpe ratio, 1 year
-0.29
Beta to the S&P 500 (5Y)
2.21

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

44.1%−2.5 pts over 5 years

Operating margin

11.3%−5.1 pts over 5 years

Net margin

3.6%−5.9 pts over 5 years

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