RH (RH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Ulta Beauty, Inc.

CarMax, Inc.

Dick's Sporting Goods, Inc.

AutoNation, Inc.

Why is RH ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

High Debt Company with a Debt to Equity ratio (avg) at times

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -57.47%, its profits have fallen by -17%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -57.47% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is RH for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

-57.47%

-0.51

81.68%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.23%

EBIT Growth (5y)

0.54%

EBIT to Interest (avg)

5.74

Debt to EBITDA (avg)

2.52

Net Debt to Equity (avg)

-23.98

Sales to Capital Employed (avg)

1.25

Tax Ratio

10.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

36.57%

ROE (avg)

62.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

-21.00

EV to EBIT

16.67

EV to EBITDA

12.32

EV to Capital Employed

2.42

EV to Sales

1.93

PEG Ratio

Dividend Yield

ROCE (Latest)

14.50%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -9,479.94 %

INTEREST COVERAGE RATIO(Q)

Highest at 292.87

RAW MATERIAL COST(Y)

Fallen by -0.79% (YoY

NET SALES(Q)

Highest at USD 899.15 MM

OPERATING PROFIT(Q)

Highest at USD 169.06 MM

PRE-TAX PROFIT(Q)

Highest at USD 78.83 MM

NET PROFIT(Q)

Highest at USD 56.67 MM

EPS(Q)

Highest at USD 2.62

-1What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.92 times

Here's what is working for RH

Interest Coverage Ratio

Highest at 292.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At USD 78.83 MM has Grown at 133.03%

over average net sales of the previous four periods of USD 33.83 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 56.67 MM has Grown at 88.21%

over average net sales of the previous four periods of USD 30.11 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at -9,479.94 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at USD 899.15 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 169.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 78.83 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 56.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.62

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -0.79% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for RH

Inventory Turnover Ratio

Lowest at 1.92 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio