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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Williams-Sonoma, Inc.

Casey's General Stores, Inc.

BJ's Wholesale Club Holdings, Inc.

Murphy USA, Inc.

Lithia Motors, Inc.

Ulta Beauty, Inc.

Penske Automotive Group, Inc.

Dick's Sporting Goods, Inc.

AutoNation, Inc.

CarMax, 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 -61.57%, its profits have fallen by -17%

Below par performance in long term as well as near term

Along with generating -61.57% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

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

-39.53%

-0.54

81.36%

S&P 500

18.34%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.77%

EBIT Growth (5y)

-1.15%

EBIT to Interest (avg)

5.74

Debt to EBITDA (avg)

2.52

Net Debt to Equity (avg)

-23.98

Sales to Capital Employed (avg)

1.30

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

740.95

EV to EBIT

13.09

EV to EBITDA

9.55

EV to Capital Employed

1.97

EV to Sales

1.47

PEG Ratio

0.44

Dividend Yield

ROCE (Latest)

15.06%

ROE (Latest)

4062.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.92% (YoY

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 77.65 MM

DEBT-EQUITY RATIO (HY)

Highest at 117,391.9 %

Here's what is working for RH

Raw Material Cost

Fallen by 0.92% (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

Depreciation

Highest at USD 38.38 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for RH

Cash and Eqv

Lowest at USD 77.65 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 117,391.9 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio