-0.82%
9.15%
35.08%
48.11%
69.49%
6.65%
105.81%

Company Description

RH, together with its subsidiaries, operates as a retailer in the home furnishings.It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings.The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com.


As of January 29, 2022, it operated a total of 67 RH Galleries and 38 RH outlet stores in 30 states in the District of Columbia and Canada, as well as 14 Waterworks showrooms throughout the United States and the United Kingdom.The company was formerly known as Restoration Hardware Holdings, Inc.and changed its name to RH in January 2017.


RH was incorporated in 2011 and is headquartered in Corte Madera, California.

Market Data

Last Price 429.62
Change Percentage -0.82%
Open 429.21
Previous Close 433.16
Market Cap ( Millions) 7992
Volume 20659
Year High 457.26
Year Low 212.43
M A 50 395.68
M A 200 309.72

Financial Ratios

FCF Yield -4.95%
Dividend Yield 0.00%
ROE -27.81%
Debt / Equity -627.45%
Net Debt / EBIDTA 250.29%
Price To Book -43.51
Price Earnings Ratio 113.96
Price To FCF -20.21
Price To sales 2.57
EV / EBITDA 21.35

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> RH

Expected Growth : 2.0 %

What the company do ?

RH in RH stands for Red Hat, a leading provider of open-source solutions, founded in 1993 by Bob Young and Marc Ewing.

Why we expect these perspectives ?

RH's 2.0 growth driven by expanding product offerings, increasing online presence, and strategic pricing. Strong brand recognition, high-end interior design, and luxury furniture demand also contribute to growth. Additionally, the company's focus on Galleries, outlets, and international expansion further supports revenue increase.

Segment n°2 -> Waterworks

Expected Growth : 3.0 %

What the company do ?

Waterworks is a RH furniture collection featuring industrial-chic, reclaimed wood pieces with metal accents, evoking a vintage, factory-inspired aesthetic.

Why we expect these perspectives ?

Waterworks from RH with 3.0 growth driven by increasing demand for luxury home furnishings, expanding product offerings, and strategic marketing efforts. Additionally, RH's focus on experiential retail and investments in digital capabilities are expected to contribute to growth.

Rh Products

Product Range What is it ?
Furniture RH offers a wide range of high-quality, stylish, and comfortable furniture for the living room, dining room, bedroom, and outdoor spaces.
Lighting RH's lighting collection features a variety of stylish and functional lighting fixtures, including chandeliers, sconces, table lamps, and floor lamps.
Textiles RH offers a wide range of luxurious textiles, including fabrics, rugs, and throws, in a variety of materials, patterns, and colors.
Decor RH's decor collection features a curated selection of stylish and unique decorative pieces, including vases, sculptures, and wall art.
Baby & Child RH's baby and child collection features a range of stylish and functional furniture and decor for nurseries and kids' bedrooms.
Outdoor RH's outdoor collection features a range of stylish and durable outdoor furniture, decor, and accessories for patios, gardens, and outdoor living spaces.
Bath & Bed RH's bath and bed collection features a range of luxurious bedding, towels, and bath accessories in a variety of materials and styles.

RH's Porter Forces

RH's products are highly customizable, making it difficult for substitutes to emerge. However, the rise of online marketplaces and DIY furniture platforms poses a moderate threat.

RH's high-end products and strong brand loyalty reduce the bargaining power of customers. Additionally, the company's focus on luxury and exclusivity limits price sensitivity.

RH's suppliers have some bargaining power due to the company's reliance on high-quality materials and craftsmanship. However, RH's strong relationships with suppliers and its ability to negotiate prices mitigate this threat.

The luxury furniture market has high barriers to entry, including significant capital requirements and the need for established relationships with suppliers and designers. This limits the threat of new entrants.

The luxury furniture market is highly competitive, with established players like Williams-Sonoma and Crate & Barrel. RH's focus on high-end products and exclusive designs helps to differentiate it, but the company still faces intense competition.

Capital Structure

Value
Debt Weight 113.07%
Debt Cost 7.71%
Equity Weight -13.07%
Equity Cost 16.58%
WACC 6.55%
Leverage -865.31%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
429.62$
Current Price
429.62$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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