# RH (RH.US)

Canonical: https://gigainvestors.com/s/RH

Analysis as of: 2026-10-16T07:31:33.964Z. Financial observations: FY2010–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $117.87 per share; close as of 2026-10-15.

Estimated value: low $75.22 per share, central $85.18 per share, high $98.44 per share. Buy at or below the central value $85.18 per share. Valuation as of 2026-10-16T07:31:33.964Z; scenarios are not confidence intervals.

Expected annual return: 8.0% at the stated quote. About 8.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.39×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.06×

- FY2019: 0.10×

- FY2020: 0.14×

- FY2021: 0.17×

- FY2022: 0.25×

- FY2023: 0.21×

- FY2024: 0.12×

- FY2025: 0.12×

- FY2026: 0.11×

- LTM to Jul 2026: 0.10×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.9%

- ROIC, second-lowest year: 7.5%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 44.3%

- Recent gross margin (lower of latest and 3-year median): 44.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.9%

- ROIC including acquisitions, ten-year median: 7.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 4.2%

- FY2018: 9.2%

- FY2019: 12.2%

- FY2020: 17.7%

- FY2021: 19.3%

- FY2022: 34.2%

- FY2023: 25.9%

- FY2024: 9.4%

- FY2025: 9.6%

- FY2026: 7.5%

### economics: pass

- Owner earnings / net income, 5-yr: 0.91×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.4B

- Net income, five-year total: $1.5B

- Return on incremental invested capital: 42.5%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 2.5 pp

- Working capital / revenue, final three-year average: 24.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 1.02×

- FY2024: -0.18×

- FY2025: 1.00×

- FY2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.2% vs 9.4%

- Per-share earnings: 0.13 to 5.91 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -7.3%

- Ordinary dilution, 5-year annual growth: -6.2%

- Market cap gain: $2.6B

- Cumulative retained earnings: -$536M

- Diluted shares, 10-year annual growth: -7.3%

- Diluted shares, 5-year annual growth: -6.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 60.8%

- Per-share value change: $5.77

- Per-share value, starting three-year median: $0.13

- Per-share value, ending three-year median: $5.91

- Buybacks concentrated in cheaper years (correlation): 0.07

- Average buyback yield: 11.9%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $203M

- Cumulative net income, 10 years: $2.2B

- ROIC, first three-year median: 9.2%

- ROIC, last three-year median: 9.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.13

- FY2018: $0.08

- FY2019: $5.68

- FY2020: $9.07

- FY2021: $9.96

- FY2022: $22.13

- FY2023: $19.90

- FY2024: $5.91

- FY2025: $3.62

- FY2026: $6.31

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -6.8%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 4

- Stock compensation / operating cash flow: 9.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.62×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 3.70×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.3%

- FY2018: -31.9%

- FY2019: -4.1%

- FY2020: -4.9%

- FY2021: -7.9%

- FY2022: 0.5%

- FY2023: 2.4%

- FY2024: -1.8%

- FY2025: 1.2%

- FY2026: -6.8%

## Holders

## Price story

Down 82% since Oct 2021 · "RH Q2 Deep Dive: RH Estates Launch and Margin Pressure Define Outlook" (finance.yahoo.com, Sep 2026) · sales +0.3%

Story as of 2026-10-16T09:59:29.976Z; price observation 2026-10-15.

Price needs cash profits to grow 5.1% a year for ten years

- 2025-04-08: BofA slashes furniture retailer RH target by $280 on tariff shock ([finance.yahoo.com](https://finance.yahoo.com/news/bofa-slashes-furniture-retailer-rh-161659506.html))

- 2025-12-12: RH Q3 Earnings Miss Estimates, Revenues Beat, FY25 Guidance Lowered ([finance.yahoo.com](https://finance.yahoo.com/news/rh-q3-earnings-miss-estimates-161700427.html))

- 2026-01-06: RH (RH) Valuation Check After Tariff Delay Eases Margin Pressure ([finance.yahoo.com](https://finance.yahoo.com/news/rh-rh-valuation-check-tariff-101352909.html))

- 2026-03-31: RH (NYSE:RH) Misses Q4 CY2025 Revenue Estimates, Stock Drops 19.5% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rh-nyse-rh-misses-q4-203601253.html))

- 2026-06-11: RH lifts 2026 outlook as Q1 beats expectations despite tariff-related headwinds ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rh-lifts-2026-outlook-q1-212036843.html))

- 2026-09-12: RH Q2 Deep Dive: RH Estates Launch and Margin Pressure Define Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/rh-q2-deep-dive-rh-025105040.html))

### Sales · FY2026–2027

sales +0.3%; source https://www.sec.gov/Archives/edgar/data/1528849/000110465926037992/rh-20260131x10k.htm; observed 2026-04-01.

- FY2018: $2.4B 

- FY2019: $2.5B 

- FY2020: $2.6B 

- FY2021: $2.8B 

- FY2022: $3.8B 

- FY2023: $3.6B 

- FY2024: $3.0B 

- FY2025: $3.2B 

- FY2026: $3.4B 

- FY2027: $3.4B 

### Gross margin · FY2026

gross margin 44.1%; source https://www.sec.gov/Archives/edgar/data/1528849/000110465926037992/rh-20260131x10k.htm; observed 2026-04-01.

- FY2017: 31.8% 

- FY2018: 34.8% 

- FY2019: 39.9% 

- FY2020: 41.4% 

- FY2021: 46.5% 

- FY2022: 49.4% 

- FY2023: 50.5% 

- FY2024: 45.9% 

- FY2025: 44.5% 

- FY2026: 44.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty retail; annual sales are USD 3.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1528849/000110465926037992/rh-20260131x10k.htm (filed 2026-04-01); FY2026: revenue 3439536000; grossProfit 1515757000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); RH.US: 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.

### Why customers stay

Margins ranged from 44.1% to 45.9% during 2024–26; it earns 10.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2024: grossProfit / revenue = 45.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2025: grossProfit / revenue = 44.5%.

- Source: https://www.sec.gov/Archives/edgar/data/1528849/000110465926037992/rh-20260131x10k.htm (filed 2026-04-01); FY2026: grossProfit / revenue = 44.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); 10-year return on capital observations [[2017,0.04248716427869734],[2018,0.09237941525523959],[2019,0.12186054002289026],[2020,0.1774481988607473],[2021,0.19297636270628113],[2022,0.3418432775412865],[2023,0.25860295837991004],[2024,0.09425694175278712],[2025,0.09572655714861951],[2026,0.07529865882204884]]; median 0.10879354858575488. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 67.2% of cash earnings; earns 42.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2018: growth capex 42320000; upkeep 70135000; owner earnings 2180000. Growth capex / owner earnings = 19.412844036697248.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2019: growth capex 0; upkeep 79992000; owner earnings 230631000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2020: growth capex 0; upkeep 93623000; owner earnings 292686000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2021: growth capex 0; upkeep 111126000; owner earnings 324861000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2022: growth capex 16882000; upkeep 168501000; owner earnings 688546000. Growth capex / owner earnings = 0.024518332834698044.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2023: growth capex 0; upkeep 173642000; cash acquisitions 2713000; owner earnings 538773000. Growth capex plus acquisitions / owner earnings = 0.005035515885168707.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); FY2025: growth capex 100597000; upkeep 130191000; cash acquisitions 9621000; owner earnings 72412000. Growth capex plus acquisitions / owner earnings = 1.5220957852289676.

- Source: https://www.sec.gov/Archives/edgar/data/1528849/000110465926037992/rh-20260131x10k.htm (filed 2026-04-01); FY2026: growth capex 51343000; upkeep 148500000; cash acquisitions 32493000; owner earnings 124787000. Growth capex plus acquisitions / owner earnings = 0.6718328030964764.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); Incremental return on capital 0.4252051459704728, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 18.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); RH.US SharesStats.PercentInsiders = 18.111 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits grow 5.1% yearly over ten years; actual growth was 21%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-01); Ten-year compound average after fade. Initial solved rate 0.05995131513677686. Price 117.87; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.9367444543128969 → FY2026 6.305159790050665. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $28.97 per share

- 2016-11: $36.05 per share

- 2016-12: $30.70 per share

- 2017-01: $27.02 per share

- 2017-02: $30.44 per share

- 2017-03: $46.26 per share

- 2017-04: $47.97 per share

- 2017-05: $56.11 per share

- 2017-06: $64.52 per share

- 2017-07: $65.13 per share

- 2017-08: $46.79 per share

- 2017-09: $70.32 per share

- 2017-10: $89.92 per share

- 2017-11: $101.39 per share

- 2017-12: $86.21 per share

- 2018-01: $93.99 per share

- 2018-02: $84.88 per share

- 2018-03: $95.28 per share

- 2018-04: $95.45 per share

- 2018-05: $97.73 per share

- 2018-06: $139.70 per share

- 2018-07: $135.86 per share

- 2018-08: $159.00 per share

- 2018-09: $131.01 per share

- 2018-10: $115.71 per share

- 2018-11: $116.14 per share

- 2018-12: $119.82 per share

- 2019-01: $135.87 per share

- 2019-02: $153.59 per share

- 2019-03: $102.95 per share

- 2019-04: $106.71 per share

- 2019-05: $85.15 per share

- 2019-06: $115.60 per share

- 2019-07: $139.40 per share

- 2019-08: $143.25 per share

- 2019-09: $170.83 per share

- 2019-10: $181.70 per share

- 2019-11: $205.59 per share

- 2019-12: $213.50 per share

- 2020-01: $208.75 per share

- 2020-02: $181.40 per share

- 2020-03: $100.47 per share

- 2020-04: $143.78 per share

- 2020-05: $216.89 per share

- 2020-06: $248.90 per share

- 2020-07: $287.43 per share

- 2020-08: $330.55 per share

- 2020-09: $382.62 per share

- 2020-10: $335.23 per share

- 2020-11: $453.16 per share

- 2020-12: $447.52 per share

- 2021-01: $475.36 per share

- 2021-02: $490.37 per share

- 2021-03: $596.60 per share

- 2021-04: $688.02 per share

- 2021-05: $641.05 per share

- 2021-06: $679.00 per share

- 2021-07: $664.08 per share

- 2021-08: $700.67 per share

- 2021-09: $666.91 per share

- 2021-10: $659.63 per share

- 2021-11: $583.18 per share

- 2021-12: $535.94 per share

- 2022-01: $402.82 per share

- 2022-02: $401.87 per share

- 2022-03: $326.09 per share

- 2022-04: $336.12 per share

- 2022-05: $290.08 per share

- 2022-06: $212.26 per share

- 2022-07: $279.43 per share

- 2022-08: $255.91 per share

- 2022-09: $246.07 per share

- 2022-10: $253.93 per share

- 2022-11: $286.83 per share

- 2022-12: $267.19 per share

- 2023-01: $311.99 per share

- 2023-02: $299.03 per share

- 2023-03: $243.55 per share

- 2023-04: $255.13 per share

- 2023-05: $244.98 per share

- 2023-06: $329.59 per share

- 2023-07: $388.17 per share

- 2023-08: $365.19 per share

- 2023-09: $264.36 per share

- 2023-10: $217.96 per share

- 2023-11: $269.97 per share

- 2023-12: $291.48 per share

- 2024-01: $253.48 per share

- 2024-02: $274.40 per share

- 2024-03: $348.26 per share

- 2024-04: $247.05 per share

- 2024-05: $271.93 per share

- 2024-06: $244.44 per share

- 2024-07: $290.08 per share

- 2024-08: $253.70 per share

- 2024-09: $334.43 per share

- 2024-10: $318.05 per share

- 2024-11: $385.14 per share

- 2024-12: $393.59 per share

- 2025-01: $419.11 per share

- 2025-02: $322.07 per share

- 2025-03: $234.41 per share

- 2025-04: $184.03 per share

- 2025-05: $181.11 per share

- 2025-06: $189.01 per share

- 2025-07: $205.62 per share

- 2025-08: $225.67 per share

- 2025-09: $203.16 per share

- 2025-10: $172.49 per share

- 2025-11: $157.59 per share

- 2025-12: $179.15 per share

- 2026-01: $198.83 per share

- 2026-02: $165.71 per share

- 2026-03: $139.82 per share

- 2026-04: $131.96 per share

- 2026-05: $148.49 per share

- 2026-06: $164.73 per share

- 2026-07: $165.52 per share

- 2026-08: $149.15 per share

- 2026-09: $121.75 per share

- 2026-10: $117.87 per share

## Annual estimated value (USD per share)

- FY2018: low $0.88 per share, central $1.00 per share, high $1.16 per share

- FY2019: low $19.37 per share, central $22.04 per share, high $25.60 per share

- FY2020: low $27.80 per share, central $39.71 per share, high $46.65 per share

- FY2021: low $132.15 per share, central $188.10 per share, high $220.68 per share

- FY2022: low $249.16 per share, central $326.97 per share, high $372.28 per share

- FY2023: low $263.65 per share, central $353.45 per share, high $405.75 per share

- FY2024: low $218.99 per share, central $309.61 per share, high $363.08 per share

- FY2025: low $198.32 per share, central $225.67 per share, high $262.07 per share

- FY2026: low $68.92 per share, central $78.42 per share, high $91.07 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1528849/000110465926037992/rh-20260131x10k.htm); period 2026-01-31, filed 2026-04-01.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.