Is RH Stock a Good Investment?

RH Investment Advice

To provide specific investment advice or recommendations on RH stock, we recommend investors consider the following general factors when evaluating RH. This will help you to make an informed decision on whether to include RH in one of your diversified portfolios:

Examine RH's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research RH's leadership team and their track record. Good management can help RH navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Homefurnishing Retail space and any emerging trends that could impact RH's business and its evolving consumer preferences.
Compare RH's performance and market position to its competitors. Analyze how RH is positioned in terms of product offerings, innovation, and market share.
Check if RH pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about RH's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in RH stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if RH is a good investment.

Sell

Buy

Strong Buy

Macroaxis provides advice on RH to complement and cross-verify current analyst consensus on RH. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure RH is not overpriced, please check all RH fundamentals, including its cash per share, number of employees, and the relationship between the revenue and cash flow from operations . Given that RH has a price to earning of 27.83 X, we recommend you to check out RH market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Market Performance	Good	Details
Volatility	Very steady	Details
Hype Condition	Over hyped	Details
Current Valuation	Fairly Valued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Almost mirrors the market	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine RH Stock

Researching RH's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 19.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.36. RH had not issued any dividends in recent years.

To determine if RH is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding RH's research are outlined below:

	RH appears to be risky and price may revert if volatility continues
	RH is unlikely to experience financial distress in the next 2 years
	Over 88.0% of the company shares are owned by institutional investors
	Latest headline from investing.com: RH stock retains Buy rating as TD Cowen flags improved demand in Los Angeles Design District

RH uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in RH. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to RH's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	3rd of April 2024 Upcoming Quarterly Report	View
	23rd of May 2024 Next Financial Report	View
	31st of January 2024 Next Fiscal Quarter End	View
	3rd of April 2024 Next Fiscal Year End	View
	31st of October 2023 Last Quarter Report	View
	31st of January 2023 Last Financial Announcement	View

Earnings surprises can significantly impact RH's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises RH's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2013-06-13	2013-05-31	0.04	0.06	0.02	50
2015-06-11	2015-05-31	0.2	0.23	0.03	15
2016-12-08	2016-11-30	0.16	0.2	0.04	25
2013-12-12	2013-11-30	0.28	0.32	0.04	14
2013-09-10	2013-08-31	0.43	0.49	0.06	13
2014-06-11	2014-05-31	0.11	0.18	0.07	63
2016-06-08	2016-05-31	0.05	-0.05	-0.1	200
2016-09-08	2016-08-31	0.29	0.44	0.15	51

Know RH's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as RH is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading RH backward and forwards among themselves. RH's institutional investor refers to the entity that pools money to purchase RH's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Millennium Management Llc	2024-06-30	284.6 K
Amvescap Plc.	2024-06-30	256.9 K
Dimensional Fund Advisors, Inc.	2024-09-30	251.5 K
Geode Capital Management, Llc	2024-09-30	250.3 K
Two Sigma Investments Llc	2024-09-30	235.5 K
Rima Management, Llc	2024-09-30	232.6 K
Allspring Global Investments Holdings, Llc	2024-06-30	227.2 K
Balyasny Asset Management Llc	2024-09-30	187.2 K
Charles Schwab Investment Management Inc	2024-09-30	184.8 K
Fmr Inc	2024-09-30	2.8 M
Vanguard Group Inc	2024-09-30	1.4 M

Note, although RH's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

RH's market capitalization trends

The company currently falls under 'Mid-Cap' category with a market capitalization of 7.13 B.

Market Cap

3.45 Billion

RH's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.03	0.07
Return On Capital Employed	0.11	0.14
Return On Assets	0.03	0.06
Return On Equity	(0.43)	0.13

The company has Net Profit Margin (PM) of 0.01 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.12 %, which signifies that for every $100 of sales, it has a net operating income of $0.12.

Determining RH's profitability involves analyzing its financial statements and using various financial metrics to determine if RH is a good buy. For example, gross profit margin measures RH's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of RH's profitability and make more informed investment decisions.

Evaluate RH's management efficiency

RH has Return on Asset (ROA) of 0.038 % which means that for every $100 of assets, it generated a profit of $0.038. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.2986 %, which means that it produced $0.2986 on every 100 dollars invested by current stockholders. RH's management efficiency ratios could be used to measure how well RH manages its routine affairs as well as how well it operates its assets and liabilities. The RH's current Return On Tangible Assets is estimated to increase to 0.07. The RH's current Return On Capital Employed is estimated to increase to 0.14. As of now, RH's Return On Tangible Assets are increasing as compared to previous years. The RH's current Intangibles To Total Assets is estimated to increase to 0.11, while Other Assets are projected to decrease to 0.95.

	Last Reported	Projected for Next Year
Book Value Per Share	(14.96)	17.81
Tangible Book Value Per Share	(25.87)	13.43
Enterprise Value Over EBITDA	16.58	17.87
Price Book Value Ratio	(17.12)	4.91
Enterprise Value Multiple	16.58	17.87
Price Fair Value	(17.12)	4.91
Enterprise Value	8.7 B	3.7 B

Examining the leadership quality of RH offers valuable insights into its operational efficiency and financial health. This analysis assists investors in making informed decisions regarding the stock.

Beta

2.43

Basic technical analysis of RH Stock

As of the 28th of November, RH holds the Semi Deviation of 1.62, market risk adjusted performance of 0.5402, and Coefficient Of Variation of 702.63. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of RH, as well as the relationship between them.

RH's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific RH insiders, such as employees or executives, is commonly permitted as long as it does not rely on RH's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases RH insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Edward Lee over a week ago Disposition of 2000 shares by Edward Lee of RH at 101.25 subject to Rule 16b-3
		Edward Lee over a month ago Disposition of 2000 shares by Edward Lee of RH at 101.25 subject to Rule 16b-3
		Mark Demilio over a month ago Acquisition by Mark Demilio of 8000 shares of RH subject to Rule 16b-3
		Mark Demilio over a month ago Disposition of 2000 shares by Mark Demilio of RH at 340.2993 subject to Rule 16b-3
		Mark Demilio over a month ago Disposition of 2000 shares by Mark Demilio of RH at 340.2993 subject to Rule 16b-3
		Carlos Alberini over three months ago Disposition of 2814 shares by Carlos Alberini of RH at 312.4326 subject to Rule 16b-3
		Kathleen Mitic over three months ago Acquisition by Kathleen Mitic of 547 shares of RH subject to Rule 16b-3
		Gary Friedman over three months ago Acquisition by Gary Friedman of 400 shares of RH at 214.4562 subject to Rule 16b-3
		Gary Friedman over three months ago Acquisition by Gary Friedman of 6955 shares of RH at 213.6743 subject to Rule 16b-3
		Carlos Alberini over six months ago Disposition of 2963 shares by Carlos Alberini of RH at 310.4244 subject to Rule 16b-3
		Christina Hargarten over six months ago Acquisition by Christina Hargarten of 2000 shares of RH at 267.09 subject to Rule 16b-3
		Mark Demilio over six months ago Disposition of 1000 shares by Mark Demilio of RH at 288.993 subject to Rule 16b-3

RH's Outstanding Corporate Bonds

RH issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. RH uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most RH bonds can be classified according to their maturity, which is the date when RH has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	US74965LAB71 Corp Bond US74965LAB71	View
	US74965LAA98 Corp Bond US74965LAA98	View
	MPLX LP 52 Corp Bond US55336VAL45	View
	US749685AX13 Corp Bond US749685AX13	View
	RPM 295 15 JAN 32 Corp Bond US749685AY95	View
	RPM INTL INC Corp Bond US749685AV56	View
	RPM INTL INC Corp Bond US749685AU73	View

View All RH Corporate Bonds

Understand RH's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing RH's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1168
	Market Risk Adjusted Performance	0.5402
	Mean Deviation	2.22
	Semi Deviation	1.62
	Downside Deviation	1.94
	Coefficient Of Variation	702.63
	Standard Deviation	3.88
	Variance	15.02
	Information Ratio	0.1087
	Jensen Alpha	0.4185
	Total Risk Alpha	(0.07)
	Sortino Ratio	0.2169
	Treynor Ratio	0.5302
	Maximum Drawdown	29.32
	Value At Risk	(2.84)
	Potential Upside	4.95
	Downside Variance	3.77
	Semi Variance	2.64
	Expected Short fall	(2.88)
	Skewness	4.25
	Kurtosis	26.2

	Risk Adjusted Performance	0.1168
	Market Risk Adjusted Performance	0.5402
	Mean Deviation	2.22
	Semi Deviation	1.62
	Downside Deviation	1.94
	Coefficient Of Variation	702.63
	Standard Deviation	3.88
	Variance	15.02
	Information Ratio	0.1087
	Jensen Alpha	0.4185
	Total Risk Alpha	(0.07)
	Sortino Ratio	0.2169
	Treynor Ratio	0.5302
	Maximum Drawdown	29.32
	Value At Risk	(2.84)
	Potential Upside	4.95
	Downside Variance	3.77
	Semi Variance	2.64
	Expected Short fall	(2.88)
	Skewness	4.25
	Kurtosis	26.2

Consider RH's intraday indicators

RH intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of RH stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	9481.1
	Daily Balance Of Power	0.1005
	Rate Of Daily Change	1.0
	Day Median Price	387.43
	Day Typical Price	387.14
	Price Action Indicator	(0.41)
	Period Momentum Indicator	0.92
	Relative Strength Index	51.51

RH Corporate Filings

13A	14th of November 2024 An amended filing to the original Schedule 13G	View Verify
F4	18th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
13A	26th of September 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934	View Verify
8K	12th of September 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify

RH time-series forecasting models is one of many RH's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary RH's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

RH Stock media impact

Far too much social signal, news, headlines, and media speculation about RH that are available to investors today. That information is available publicly through RH media outlets and privately through word of mouth or via RH internal channels. However, regardless of the origin, that massive amount of RH data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of RH news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of RH relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to RH's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive RH alpha.

RH Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards RH can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

RH Historical Investor Sentiment

Investor biases related to RH's public news can be used to forecast risks associated with an investment in RH. The trend in average sentiment can be used to explain how an investor holding RH can time the market purely based on public headlines and social activities around RH. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

RH's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for RH and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average RH news discussions. The higher the estimate score, the more favorable the investor's outlook on RH.