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RH (RH) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

RH

RHMarket cap $2.22BPrice $117.2

Country🇺🇸United States

SectorConsumer

IndustrySpecialty Retail

Sells luxury home furnishings through immersive galleries designed to feel like private estates, not stores. RH turned retail into real estate theater, opening rooftop restaurants and guesthouses to sell a lifestyle, not just sofas, at prices that make Restoration Hardware's old name a joke.

In Bastion Portfolios?

52W Return-33%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-1%2

Revenue Forecast

Rev CAGR (1y)+6%5

Rev CAGR (3y)+8%6

Rev CAGR (5y)+8%7

Earnings Forecast

EPS Growth Y+1-17%2

EPS Growth Y+2+75%10

EPS Growth Y+3+38%9

Quality

Margins

EBIT Margin8%4

Net Income Margin3%3

Free Cash Flow Margin7%5

Debt

Net Debt/EBITDA6.51

Efficiency

ROE185%10

ROA2%4

Earnings Stability22

GEAR+WEAK21

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)204

P/E Ratio (Forward 3y)98

P/BV18.41

EV Multiples

EV/EBITDA Fwd116

EV/EBIT Fwd184

Yield

Free Cash Flow Yield11.3%9

Dividend Yieldna–

Momentum

Short term

1 month return-21%1

3 month return-28%1

YTD return-35%1

Mid term

Price vs 52wHigh49%1

1 year return-40%1

Long term

3 year return-53%1

5 year return-82%1

Risk Shield

Price Risk

Beta2.61

Volatility61%2

Free Cash Flow

Free Cash Flow Margin7%5

Free Cash Flow Yield11.3%9

Quality

ROCE7%4

Earnings Stability22

Net Debt/EBITDA6.51

02Growth

Is it actually growing, and how fast?

RHRH

Revenue FY26$3.4B

GROWTH RATING↗

AVERAGE55 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%2

Revenue, next 1Y+6%5

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+8%7

EARNINGS FORECAST▾SCORE

EPS growth, FY27E-17%2

EPS growth, FY28E+75%10

EPS growth, FY29E+38%9

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 8%/yr from here.

The runway holds up: revenue is set to grow 8%/yr over five years.7/10

WATCH

A mid-pack grower, ahead of 55% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Earnings are set to grow faster than sales (EPS about 38%/yr vs revenue 8%/yr), so margins should widen. One year dips: EPS falls 17% next year.

WEAKNESSES

Revenue fell 1%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK1 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-21%1

3-month return-28%1

YTD return-35%1

MID & LONG-TERM▾SCORE

% of 52-week high49%1

1-year return-40%1

3-year return-53%1

5-year return-82%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-53% over three years and -82% over five), behind 90% of the market.

It's down 40% over the past year, now 51% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-21%), over three months (-28%) and so far this year (-35%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on RH. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

RHRH

Revenue FY26$3.4B

GROWTH RATING↗

AVERAGE55 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%2

Revenue, next 1Y+6%5

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+8%7

EARNINGS FORECAST▾SCORE

EPS growth, FY27E-17%2

EPS growth, FY28E+75%10

EPS growth, FY29E+38%9

GROWTH ASSESSMENT

STRENGTHS

After shrinking over the last 3 years, revenue is set to grow 8%/yr from here.

The runway holds up: revenue is set to grow 8%/yr over five years.7/10

WATCH

A mid-pack grower, ahead of 55% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Earnings are set to grow faster than sales (EPS about 38%/yr vs revenue 8%/yr), so margins should widen. One year dips: EPS falls 17% next year.

WEAKNESSES

Revenue fell 1%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK1 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-21%1

3-month return-28%1

YTD return-35%1

MID & LONG-TERM▾SCORE

% of 52-week high49%1

1-year return-40%1

3-year return-53%1

5-year return-82%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-53% over three years and -82% over five), behind 90% of the market.

It's down 40% over the past year, now 51% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-21%), over three months (-28%) and so far this year (-35%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on RH. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community