* Note: Prices are in Million (M) USD.
Description:
RH, is a home furnishings retailer. The company is headquartered in Corte Madera, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $46 M
Debt : $3,938 M
EBITDA : $464 M
Net Debt (Debt - Cash): $3,892 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Consumer Cyclical
Industry: Specialty Retail
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 19.13
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $68 M
Average Revenue: $1,888 M
Revenue Converted To Free Cash Flow (%): 4%
Avg Free Cash Flow Growth Per Year (Last 5 Years): -63.64%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $3,181 M
Revenue 4 Years Ago (2021-01-31): $2,849 M
Last 5 Years Average Revenue Growth: 2%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $20 M
Share Count 5 Years Ago (2021-01-31): $27 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $14.36
Trailing 12-Month Earnings Per Share (EPS): $11.12
Average Earnings Per Share (EPS): $12.74
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 77%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $244
52-Week Low: $123
Threshold Price (15% Above 52-Week Low): $141
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $4,404 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above RH (RH) stock.
Last 8 Years Avg PE 24.92, Fair Value PE 12, Industry Based PE 15, Growth Based PE 2, RCFC Based PE 3.6. Based on these 5 values, average assigned is 11.50.
Value-Trades has assined P/E value 11.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $12.74.
The fair value of RH (RH) stock should be (11.50 x $12.74) = $146.51
