A Business at a Glance
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RH
RH
$3.5B
Mkt Cap
$174.51
+5.08%
RH (RH) has a current P/E ratio of 19.1, compared to its historical median P/E of 25.9. The stock is currently considered Fair based on its historical valuation range.
RH (RH) has a 5-year average return on invested capital (ROIC) of 87.9%. This indicates strong capital allocation and a potential competitive advantage.
RH (RH) has a market capitalization of $3.3B. It is classified as a mid-cap stock.
RH (RH) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.37%.
Based on historical P/E analysis, RH (RH) appears fair. The current P/E of 19.1 is 26% below its historical median of 25.9. The estimated fair value CAGR (P/E method) is -4.1%.
RH (RH) operates in the Retail-Furniture Stores industry, within the Consumer Cyclical sector.
RH (RH) reported annual revenue of $3.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
RH is a leading luxury home furnishings retailer and lifestyle brand operating through a fully integrated multi-channel platform comprising retail galleries, e-commerce websites, and print Sourcebooks across North America and Europe. The company offers curated assortments spanning furniture, lighting, textiles, bathware, décor, outdoor and garden, and baby, child and teen furnishings under distinct brand concepts including RH Interiors, RH Modern, RH Contemporary, RH Outdoor, RH Beach House, RH Ski House, RH Baby & Child, RH TEEN, and Waterworks. RH positions its Design Galleries as immersive showrooms that showcase the full breadth of its luxury assortment, with 21 locations incorporating integrated hospitality experiences featuring restaurants and wine bars, while extending the brand ecosystem through RH Guesthouses, private aviation (RH1 and RH2 jets), and a luxury yacht (RH3) available for charter. The company's business model emphasizes product elevation through continuous design and quality enhancement, gallery transformation to unlock assortment value, and brand elevation by positioning RH as a global taste and place maker through an ecosystem of products, places, services and spaces. RH operates with a capital-intensive real estate platform in the United States, Canada, United Kingdom, Germany, Belgium, and Spain, with ongoing international expansion into France, Italy, and Australia, targeting a projected global brand opportunity of $20 to $25 billion in annual revenues.
【International expansion accelerating】 Management expects meaningful margin expansion over the medium term as the company cycles through its aggressive investment period in new galleries and international markets, with particular emphasis on the opening of flagship locations in Paris, Milan, and London as brand-building foundations for European expansion. The company anticipates revenue growth to accelerate from conservative 2026 guidance as new galleries mature, the RH Estates concept scales, and backlog normalization occurs, with management noting that current demand trends are stronger than reflected in near-term revenue due to tariff-related timing shifts and back order fulfillment. Management is pursuing aggressive cost mitigation strategies including sourcing diversification away from China and tariff-impacted regions, with expectations that product margins remain healthy despite near-term tariff headwinds. The company plans to accelerate gallery expansion to seven to nine new locations annually plus two to three design studios or new concept galleries, while continuing to develop new product collections including RH Couture, RH Bespoke, and RH Color to drive incremental sales and brand desirability.
| Metric | Target | Period |
|---|---|---|
| Revenue growth | 4.5%-8% | FY2026 |
| Adjusted EBITDA margin | 14.2%-16% | FY2026 |
| Adjusted free cash flow | $300 million-$400 million | FY2026 |
| Revenue growth | 10%-12% | FY2027 |
| Revenue | $5.4 billion-$5.8 billion | FY2030 |
| Adjusted EBITDA margin | 25%-28% | FY2030 |
| Adjusted free cash flow | $500 million-$600 million | FY2027 |
| Cumulative adjusted free cash flow | $3 billion | Through FY2030 |
| Net debt target | Debt-free | By 2029 |
Revenue growth (FY2026): “Fiscal year 2026 outlook: revenue growth of 4.5%-8%”
Adjusted EBITDA margin (FY2026): “Fiscal year 2026 outlook: revenue growth of 4.5%-8%, adjusted EBITDA margin of 14.2%-16%”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.3B | 3.2B | -198M | - | - | - |
| Net Income | 107M | 72M | 128M | 529M | 689M | 272M |
| EPS | $5.41 | $3.62 | $5.91 | $19.90 | $22.13 | $9.96 |
| Free Cash Flow | -51M | -214M | -67M | 230M | 477M | 390M |
| ROIC | 6.1% | 7.0% | 200.9% | 73.9% | 96.0% | 174.7% |
| Gross Margin | 44.6% | 44.5% | -700.5% | - | - | - |
| Debt/Equity | 0.00 | -4.22 | -1.96 | 0.83 | 0.01 | 0.08 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 357M | 323M | 394M | 722M | 927M | 467M |
| Operating Margin | 10.7% | 10.1% | -198.6% | - | - | - |
| ROE | 0.0% | - | 52.4% | 54.1% | 85.1% | 116.7% |
| Shares Outstanding | 19M | 20M | 22M | 27M | 31M | 27M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.6B | 1.9B | 2.1B | 2.1B | 2.4B | 2.5B | 2.6B | N/A | N/A | N/A | -198M | 3.2B | 3.3B |
| Gross Margin | 35.9% | 37.0% | 35.7% | 31.8% | 34.4% | 39.3% | 41.4% | N/A | N/A | N/A | -700.5% | 44.5% | 44.6% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 502M | 525M | 567M | 627M | 722M | 724M | 732M | 859M | 928M | 1.1B | 1.0B | 1.1B | 1.1B |
| EBIT | 55M | 166M | 186M | 53M | 117M | 262M | 363M | 467M | 927M | 722M | 394M | 323M | 357M |
| Op. Margin | 3.5% | 8.9% | 8.8% | 2.5% | 4.8% | 10.4% | 13.7% | N/A | N/A | N/A | -198.6% | 10.1% | 10.7% |
| Net Income | 18M | 91M | 91M | 5.4M | -2.6M | 136M | 220M | 272M | 689M | 529M | 128M | 72M | 107M |
| Net Margin | 1.2% | 4.9% | 4.3% | 0.3% | -0.1% | 5.4% | 8.3% | N/A | N/A | N/A | -64.3% | 2.3% | 3.2% |
| Non-Recurring | 0 | 0 | 0 | 5.7M | 37M | 70M | 17M | 14M | 10M | 25M | 16M | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 5.8% | 18.3% | 23.0% | 4.4% | 15.7% | 102.4% | 148.2% | 174.7% | 96.0% | 73.9% | N/M | 7.0% | 6.1% |
| ROE | 3.7% | 14.6% | 11.5% | 0.6% | -0.6% | N/A | 1181.6% | 116.7% | 85.1% | 54.1% | 52.4% | N/A | 0.0% |
| ROA | 2.0% | 7.1% | 5.0% | 0.2% | -0.1% | 6.5% | 9.1% | 10.2% | 16.3% | 9.7% | 2.7% | 1.7% | 2.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 88M | 79M | 127M | 81M | 475M | 250M | 339M | 501M | 662M | 404M | 202M | 17M | 174M |
| Free Cash Flow | -6.3M | -31M | 7.2M | -90M | 406M | 170M | 246M | 390M | 477M | 230M | -67M | -214M | -51M |
| Owner Earnings | -7.8M | 28M | 58M | -5.7M | 341M | 134M | 217M | 255M | 518M | 252M | 44M | -157M | -665M |
| CapEx | 94M | 110M | 119M | 170M | 68M | 80M | 94M | 111M | 185M | 174M | 269M | 231M | 225M |
| Maint. CapEx | 28M | 34M | 45M | 57M | 83M | 91M | 101M | 100M | 96M | 109M | 119M | 130M | 793M |
| Growth CapEx | 66M | 76M | 75M | 113M | 0 | 0 | 0 | 11M | 89M | 65M | 150M | 101M | 0 |
| D&A | 28M | 34M | 45M | 57M | 83M | 91M | 101M | 100M | 96M | 109M | 119M | 130M | 793M |
| CapEx/OCF | 107.3% | 139.3% | 94.3% | 211.2% | 14.4% | 32.0% | 27.6% | 22.2% | 28.0% | 43.0% | 133.2% | 1350.0% | 129.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 2.7M | 17M | 238K | 0 | 1.0B | 250M | 250M | 72K | 0 | 1.0B | 1.3B | 12M | 12M |
| Buyback Yield | 0.1% | 0.4% | 0.0% | N/A | 37.1% | 7.1% | 4.7% | N/A | N/A | 12.1% | 21.3% | 0.1% | 0.4% |
| Stock-Based Comp | 68M | 17M | 24M | 29M | 51M | 24M | 22M | 146M | 48M | 44M | 39M | 44M | 46M |
| Debt Repayment | 2.6M | 5.4M | 2.4M | 0 | 8.3M | 0 | 279M | 216M | 336M | 28M | 1.7M | 42M | 42M |
| Balance Sheet | |||||||||||||
| Net Debt | 72M | -208M | -462M | -230M | 68M | 416M | 5.4M | -63M | -2.2B | -854M | 458M | 629M | -54M |
| Cash & Equiv. | 13M | 146M | 331M | 87M | 18M | 5.8M | 48M | 100M | 2.2B | 1.5B | 124M | 30M | 69M |
| Long-Term Debt | 85M | 0 | 0 | 0 | 79M | 421M | 31M | 15M | 1.1M | 653M | 567M | 16M | 15M |
| Debt/Equity | 0.16 | 0.00 | 0.00 | 0.00 | -10.49 | -10.91 | 2.84 | 0.08 | 0.01 | 0.83 | -1.96 | -4.22 | 0.00 |
| Interest Coverage | 9.6 | 9.4 | 5.2 | 1.2 | 2.1 | 3.9 | 4.2 | 6.7 | 13.9 | 4.8 | 1.7 | 1.4 | 1.4 |
| Equity | 545M | 703M | 886M | 924M | -8.2M | -39M | 19M | 447M | 1.2B | 785M | -297M | -164M | -41M |
| Total Assets | 1.0B | 1.5B | 2.1B | 2.2B | 1.7B | 2.4B | 2.4B | 2.9B | 5.5B | 5.3B | 4.1B | 4.6B | 4.7B |
| Total Liabilities | 480M | 823M | 1.2B | 1.3B | 1.7B | 2.5B | 2.4B | 2.5B | 4.4B | 4.5B | 4.4B | 4.7B | 4.7B |
| Intangibles | 779K | 351K | 49K | 16K | 101M | 86M | 86M | 72M | 73M | 75M | 76M | 76M | 80M |
| Retained Earnings | -37M | 54M | 145M | 150M | 223M | -393M | -409M | -137M | 551M | 540M | -583M | -511M | -451M |
| Working Capital | 296M | 540M | 732M | 722M | 126M | -289M | -386M | -120M | 2.0B | 1.6B | 229M | 386M | 248M |
| Current Assets | 614M | 884M | 1.1B | 1.1B | 645M | 704M | 597M | 801M | 3.1B | 2.5B | 1.1B | 1.3B | 1.2B |
| Current Liabilities | 317M | 344M | 411M | 416M | 519M | 993M | 983M | 922M | 1.1B | 886M | 873M | 905M | 954M |
| Per Share Data | |||||||||||||
| EPS | 0.45 | 2.20 | 2.16 | 0.13 | -0.10 | 5.12 | 9.07 | 9.96 | 22.13 | 19.90 | 5.91 | 3.62 | 5.41 |
| Owner EPS | -0.19 | 0.67 | 1.37 | -0.14 | 13.11 | 5.06 | 8.92 | 9.34 | 16.64 | 9.47 | 2.03 | -7.86 | -35.46 |
| Book Value | 13.49 | 16.99 | 21.01 | 22.24 | -0.31 | -1.46 | 0.77 | 16.38 | 37.61 | 29.54 | -13.78 | -8.18 | -2.18 |
| Cash Flow/Share | 2.16 | 1.92 | 3.00 | 1.94 | 18.26 | 9.42 | 13.96 | 18.35 | 21.28 | 15.20 | 9.37 | 0.85 | 47.98 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 40.4M | 41.4M | 42.2M | 41.5M | 26.0M | 26.5M | 24.3M | 27.3M | 31.1M | 26.6M | 21.6M | 20.0M | 18.7M |
| Valuation | |||||||||||||
| P/E Ratio | 127.6 | 41.8 | 27.9 | 200.7 | N/A | 25.9 | 24.3 | 47.9 | 17.7 | 15.6 | 46.1 | 116.9 | 32.2 |
| P/FCF | N/A | N/A | 350.7 | N/A | 6.6 | 20.7 | 21.8 | 33.4 | 25.6 | 35.9 | N/A | N/A | N/A |
| EV/EBIT | N/A | N/A | N/A | 19.0 | 23.7 | 15.0 | 15.4 | 28.5 | 9.1 | 7.3 | 15.6 | 26.1 | 9.0 |
| Price/Book | N/A | N/A | 2.8 | N/A | 18.5 | N/A | 287.6 | 29.1 | 10.4 | 10.5 | N/A | N/A | N/A |
| Price/Sales | 1.5 | 1.7 | 1.8 | 0.7 | 0.7 | 1.2 | 1.4 | 2.8 | 5.0 | 2.2 | 2.0 | 1.9 | 1.0 |
| FCF Yield | -0.3% | -0.8% | 0.3% | -8.3% | 15.0% | 4.8% | 4.6% | 3.0% | 3.9% | 2.8% | -1.1% | -2.5% | -1.6% |
| Market Cap | 2.3B | 3.8B | 2.5B | 1.1B | 2.7B | 3.5B | 5.4B | 13.0B | 12.2B | 8.3B | 5.9B | 8.5B | 3.3B |
| Avg. Price | 58.09 | 77.24 | 91.75 | 34.95 | 64.20 | 116.80 | 150.82 | 294.04 | 608.70 | 295.59 | 287.14 | 302.49 | 174.51 |
| Year-End Price | 57.44 | 91.91 | 60.22 | 26.09 | 103.84 | 132.61 | 220.74 | 476.75 | 391.92 | 310.65 | 272.64 | 423.14 | 174.51 |
RH passes 4 of 9 quality checks, suggesting mixed fundamentals.
RH trades at 19.1x trailing earnings, compared to its 15-year median P/E of 25.9x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 56.7x vs a median of 23.7x. The company's 5-year average ROIC is 87.9%. Total shareholder yield (buybacks) is 0.4%. At current prices, the estimated annualized return to fair value is -15.9%.
RH (RH) has a net profit margin of 2.3%. This is a modest margin.
RH (RH) generated $-214 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
RH (RH) reported earnings per share (EPS) of $3.62 in its most recent fiscal year.
RH (RH) has a 5-year average gross margin of -328.0%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 15 years of financial data for RH (RH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
RH (RH) has a book value per share of $-8.18, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects meaningful margin expansion over the medium term as the company cycles through its aggressive investment period in new galleries and international markets, with particular emphasis on the opening of flagship locations in Paris, Milan, and London as brand-building foundations for European expansion. The company anticipates revenue growth to accelerate from conservative 2026 guidance as new galleries mature, the RH Estates concept scales, and backlog normalization occurs, with management noting that current demand trends are stronger than reflected in near-term revenue due to tariff-related timing shifts and back order fulfillment. Management is pursuing aggressive cost mitigation strategies including sourcing diversification away from China and tariff-impacted regions, with expectations that product margins remain healthy despite near-term tariff headwinds. The company plans to accelerate gallery expansion to seven to nine new locations annually plus two to three design studios or new concept galleries, while continuing to develop new product collections including RH Couture, RH Bespoke, and RH Color to drive incremental sales and brand desirability.
Based on recent SEC filings and earnings calls, RH (RH) has provided the following forward guidance: Revenue growth: 4.5%-8% (FY2026); Adjusted EBITDA margin: 14.2%-16% (FY2026); Adjusted free cash flow: $300 million-$400 million (FY2026); Revenue growth: 10%-12% (FY2027); Revenue: $5.4 billion-$5.8 billion (FY2030), plus 4 additional metrics.
Adjusted free cash flow (FY2026): “Fiscal year 2026 outlook: revenue growth of 4.5%-8%, adjusted EBITDA margin of 14.2%-16%, adjusted free cash flow of $300 million-$400 million”
Revenue growth (FY2027): “we do expect growth to accelerate to 10%-12% in 2027”
Revenue (FY2030): “reach $5.4 billion-$5.8 billion by 2030”
Adjusted EBITDA margin (FY2030): “Adjusted EBITDA in the 14%-16% range for 2026, reaching 25%-28% by 2030”
Adjusted free cash flow (FY2027): “We expect cash flow of $300 million-$400 million in 2026 and $500 million-$600 million in 2027, inclusive of $200 million-$250 million of asset sales each year”
Cumulative adjusted free cash flow (Through FY2030): “We expect cumulative cash flow of $3 billion by 2030, inclusive of the asset sales”