RH (RH)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
RH trades at USD189.21, which is 60% above the USD76.10 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 25 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 33.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About RH
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.
Smart money ownership
11 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Steve Cohen, Point72 Asset Management, L.P.$89.71M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$77.77M · 0.0% of book
- Capital Research Global, Capital Research Global Investors$47.61M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$38.70M · 0.0% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$13.95M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is RH (RH) undervalued?
Against our discounted cash flow estimate of USD76.10, RH at USD189.21 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own RH?
11 of the institutions we track reported a position in RH in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is RH's P/E ratio?
RH trades at 33.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.