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RH (RH) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Specialty Retail
B
GoodMetricSide Score: 64/100
ProfitabilityProfit13/30
GrowthGrowth20/25
Balance SheetBalance20/25
Cash QualityCash11/20
Price & Volume
Market Cap $3.19B

RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. The company operates in three segments: RH Segment, Waterworks, and Real Estate. It offers merchandise in various categories, including furniture, lighting, textiles, bath ware, décor, and outdoor and garden furnishings, as well as baby, child, and teen furnishings. The company also operates galleries, interior design studios, outlets, guesthouses, and showrooms. It sells its products through hospitality, websites, sourcebooks, and trade and contract channels, as well as retail locations and outlets. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1980 and is headquartered in Corte Madera, California.

Moat Signals

Competitive analysis based on 52 quarters of fundamental data

Pricing Power

Strong Moat

Operating margins are expanding at ~10.1%, suggesting durable pricing power and cost discipline.

Competitive Advantage

Strong Moat

Consistently high ROE averaging 1415.9% suggests a durable competitive advantage and efficient capital allocation.

Risk Signals

Data-driven red flags and warnings across 52 quarters

Some Concerns

Margin Pressure

Healthy

Margins are stable or improving at ~10.5% — no sign of cost or pricing stress.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Healthy

D/E ratio is 0.3 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Watch

FCF turned negative in 3 of the last 8 quarters — occasional cash consumption.

Share Dilution

Watch

Shares outstanding rose 2.8% — mild dilution. Compare to earnings growth to assess net per-share impact.

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$3.43B
7.7%
Q. Revenue
$800.33M
TTM EBITDA
$517.61M
17.8%
TTM Op. Income
$365.60M
18.6%
Q. Op. Income
$34.24M
TTM Net Income
$103.05M
54.9%
Q. Net Income
$-13.70M
EPS
$-0.73
Shares Out.
$18.85M
0.6%
$3.43B in TTM revenue grew 7.7% YoY, reaching $800.33M last quarter. TTM EBITDA of $517.61M and TTM operating income of $365.60M shows growth is flowing through. Net income of $103.05M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
41.4%
5.2%
EBITDA Margin
9.1%
Op. Margin
4.3%
37.7%
Net Margin
-1.7%
273.3%
Op. margin of 4.3% is down 2.6% YoY — costs are rising relative to revenue. Net margin at -1.7% and gross margin of 41.4% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
31.0x
P/S Ratio
0.9x
P/B Ratio
56.1x
At 31.0x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 0.9x and P/B of 56.1x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$4.95B
Cash
$53.80M
Long-Term Debt
$15.11M
Book Value
$56.93M
D/E Ratio
0.3
Debt/EBITDA
0.2
With $4.95B in assets and $15.11M in long-term debt, the D/E of 0.3and book value of $56.93M — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$52.50M
TTM Free Cash Flow
$231.60M
310.6%
FCF Margin
6.8%
FCF / Net Income
2.2
TTM FCF of $231.60M on $52.50M in operating cash flow. The FCF / Net Income ratio of 2.2x means earnings are well backed by actual cash — high-quality earnings.

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Cash Generation

Moderate Moat

5 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.

Demand Durability

Moderate Moat

Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.