AI Spotlight on RH
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 |
News
- Jan -21 - Cybersecurity Expert Rachel Tobac to Keynote 2025 RH-ISAC Cyber Intelligence Summit
- Jan -13 - RH Is Poised For 'Positive Inflection' In 2025 Earnings: Analyst
- Dec -19 - RH Demand Soars In December: Analyst Predicts Big Moves In 2025
- Dec -19 - What's Fueling RH's 87% Stock Surge?
- Dec -18 - RH Defies Furniture Market Downturn And Promises 2025 Will Be Bigger, Better
- Dec -18 - RH Announces the Opening of RH Interior Design Palm Desert
- Dec -17 - Prediction: A Stock Split for RH Could Be Just Over the Horizon
- Dec -17 - RH Boosts Retail Platform Expansion, Opens RH Newport Beach Gallery
- Dec -17 - RH: Rating Downgrade On Expensive Valuation
- Dec -16 - Cramer's Stop Trading: RH
- Dec -16 - RH Unveils Its Largest Gallery in the World, RH Newport Beach
- Dec -13 - RH: Demand Growth Is Accelerating, Initiate With 'Buy' Rating
- Dec -13 - Crude Oil Gains Over 1%; RH Shares Jump On Strong Forecast
- Dec -13 - RH Fell Short on Earnings But Its Stock Is Up. Here's Why
- Dec -13 - Why RH Stock Surged 20% Friday Morning
- Dec -13 - RH's Q3 Earnings Lag Estimates, Revenues Top, Stock Up 18%
- Dec -13 - RH Year-High Rally, COST Little Changed, Homebuilder Downgrades
- Dec -13 - RH raises full-year sales guidance on improved demand, shares surge
- Dec -13 - RH Earnings Reveal ‘The Quarter We All Have Been Waiting For,' Stock Jumps
- Dec -13 - RH Stock Jumps on Outlook Boost, Swing to Profit
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
Threat Of Substitutes
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.
Bargaining Power Of Customers
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.
Bargaining Power Of Suppliers
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.
Threat Of New Entrants
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.
Intensity Of Rivalry
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% |
RH : Quality Control
RH passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
AAP | Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company … |
ETSY | Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its primary marketplace is Etsy.com … |
W | Wayfair Inc. engages in the e-commerce business in the United States and internationally. The company provides approximately thirty-three million products for the home sector under various brands. It offers online … |
ULTA | Ulta Beauty, Inc. operates as a retailer of beauty products in the United States. The company's stores offer cosmetics, fragrances, skincare and haircare products, bath and body products, and salon … |
CVNA | Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company's platform allows customers to research and identify a … |