RH (RH)
NYSE:RH
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RH
(NYSE:RH)
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Rating:49Neutral
Price Target:
$112.00
▼(-6.67% Downside)
Action:ReiteratedDate:04/02/26
The score is held down primarily by elevated balance-sheet risk and materially lower profitability versus prior peaks, along with bearish technical momentum. These are partly offset by the earnings call’s improved free cash flow and credible longer-term growth and margin targets, while valuation remains only mid-range given the current risk profile.
Positive Factors
Integrated physical‑first and direct‑to‑consumer platform
RH’s blended model of large immersive Galleries, DTC channels and restaurants creates a lifestyle ecosystem that drives durable customer engagement, higher average order values and cross‑sell of services. This multi‑channel platform supports repeat business and premium positioning over the medium term.
Negative Factors
Elevated leverage and thin, volatile equity
High indebtedness and historically thin or negative equity materially constrain financial flexibility and magnify downside risk from revenue volatility. Limited balance‑sheet cushion increases refinancing and interest‑rate vulnerability and reduces capacity to absorb execution setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated physical‑first and direct‑to‑consumer platform
RH’s blended model of large immersive Galleries, DTC channels and restaurants creates a lifestyle ecosystem that drives durable customer engagement, higher average order values and cross‑sell of services. This multi‑channel platform supports repeat business and premium positioning over the medium term.
Read all positive factors
RH (RH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.26B
Dividend YieldN/A
Average Volume (3M)1.51M
Price to Earnings (P/E)29.9
Beta (1Y)2.51
Revenue Growth9.74%
EPS Growth55.13%
CountryUS
Employees5,690
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.53
Shares Outstanding18,834,576
10 Day Avg. Volume2,138,549
30 Day Avg. Volume1,512,653
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)61.53
Price to Sales (P/S)1.08
P/FCF Ratio14.77
Enterprise Value/Market Cap2.74
Enterprise Value/Revenue1.80
Enterprise Value/Gross Profit4.08
Enterprise Value/Ebitda12.34
Forecast
1Y Price Target
$161.29Price Target Upside34.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)5.33
Revenue Forecast (FY)$3.63B
RH Business Overview & Revenue Model
Company Description
RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, and child and teen furnishings. The company...
How the Company Makes Money
RH primarily makes money by selling luxury home furnishings and related products directly to consumers through multiple channels. Its core revenue stream is product sales (e.g., furniture, lighting, textiles, rugs, and décor) transacted via RH Gal...
RH Key Performance Indicators (KPIs)
Any
Store Count
Indicates the total number of retail locations, providing insight into the company’s market presence and expansion strategy.
Indicates the total number of retail locations, providing insight into the company’s market presence and expansion strategy.
Data provided by:
The Fly
The FlyRH Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call highlighted strong financial improvements (8% revenue growth, adjusted EBITDA growth to $597M, and a $466M swing to positive free cash flow) and articulated a detailed, capital-efficient global expansion and product strategy (RH Estates, immersive galleries, hospitality, manufacturing initiatives and real estate monetization) with credible long-term targets (2030 revenue and margin goals). Near-term headwinds include tariff impacts (noted ~$170–$190M/Q4 and ~90 bps drag), supply-chain and backorder issues, timing delays on Estates and peak investment-driven margin pressure that depress short-term earnings and prompted conservative 2026 guidance. Overall the strategic progress, FCF turnaround and clear long-range targets outweigh the near-term operational and macro risks, but investors should note execution and policy risk in the near term.Positive Updates
Revenue Growth and Peer Outperformance
FY2025 revenue grew 8% year-over-year and 2-year growth was 15%, outpacing furniture industry peers by 8 to 30 percentage points.
Negative Updates
Near-Term Margin Pressure from Peak Investment Cycle
Margins are pressured in the near term due to a peak investment cadence (capital and operating spend for global expansion and new concepts); 2026 adjusted EBITDA guidance is 14–16% while management expects margin leverage once investments normalize.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Peer Outperformance
FY2025 revenue grew 8% year-over-year and 2-year growth was 15%, outpacing furniture industry peers by 8 to 30 percentage points.
Read all positive updates
Company Guidance
RH guided 2026 revenue growth of 4–8% (accelerating to 10–12% in 2027) and $5.4–$5.8 billion of revenue by 2030, with adjusted EBITDA of 14–16% in 2026 rising to 25–28% by 2030; expected cash flow of $300–$400 million in 2026 and $500–$600 million in 2027 (each year inclusive of $200–$250 million of asset sales), cumulative cash flow of $3.0 billion by 2030, and a goal of being debt‑free by 2029. Management highlighted 2025 results (8% revenue growth, 15% two‑year growth, $597 million adjusted EBITDA or 17.3% of revenue, $252 million free cash flow vs. −$214 million in 2024) while noting 2025 was a peak investment year with $289 million adjusted CapEx plus $37 million of brand acquisitions, about $0.5 billion of real estate available to monetize, plans to scale new formats (15–20k sq ft single‑story galleries, 6–8 building design compounds), expand in 27 existing and 48 new North American markets (a $2 billion opportunity), and grow RH Hospitality from 26 to ~40 restaurants by end‑2027.RH Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
32
Negative
Cash Flow
54
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.44B | 3.18B | 3.03B | 3.59B | 3.76B |
| Gross Profit | 1.52B | 1.41B | 1.39B | 1.81B | 1.86B |
| EBITDA | 387.27M | 453.28M | 523.59M | 774.84M | 1.07B |
| Net Income | 124.79M | 72.41M | 127.56M | 528.64M | 688.55M |
Balance Sheet | |||||
| Total Assets | 4.84B | 4.55B | 4.14B | 5.31B | 5.54B |
| Cash, Cash Equivalents and Short-Term Investments | 41.19M | 30.41M | 123.69M | 1.51B | 2.18B |
| Total Debt | 3.97B | 3.94B | 3.72B | 3.75B | 3.43B |
| Total Liabilities | 4.78B | 4.72B | 4.44B | 4.52B | 4.37B |
| Stockholders Equity | 60.60M | -163.59M | -297.39M | 784.66M | 1.17B |
Cash Flow | |||||
| Free Cash Flow | 252.40M | -213.69M | -67.14M | 230.04M | 476.73M |
| Operating Cash Flow | 452.24M | 17.09M | 202.21M | 403.69M | 662.11M |
| Investing Cash Flow | -223.69M | -240.41M | -307.43M | -171.07M | -194.35M |
| Financing Cash Flow | -219.40M | 130.59M | -1.28B | -902.48M | 1.61B |
RH Technical Analysis
Negative
120.00
Price Trends
164.21
Negative
172.21
Negative
188.36
Negative
Market Momentum
-12.39
Negative
37.70
Neutral
31.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RH, the sentiment is Negative. The current price of 120 is below the 20-day moving average (MA) of 128.74, below the 50-day MA of 164.21, and below the 200-day MA of 188.36, indicating a bearish trend. The MACD of -12.39 indicates Negative momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 31.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RH.
RH Risk Analysis
RH disclosed 35 risk factors in its most recent earnings report. RH reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RH Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $22.32B | 23.88 | 51.45% | 1.37% | 5.10% | 7.59% | |
67 Neutral | $3.62B | 9.73 | 18.07% | 1.04% | -0.65% | -10.35% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $3.61B | 7.11 | -44.22% | 4.16% | -1.04% | -20.88% | |
55 Neutral | $5.20B | 33.41 | -15.36% | ― | 1.98% | -20.98% | |
54 Neutral | $9.70B | -41.81 | 11.30% | ― | 3.35% | 42.99% | |
49 Neutral | $2.26B | 29.88 | -569.01% | ― | 9.74% | 55.13% |
* Consumer Cyclical Sector Average
RH
RH
120.00
-72.03
-37.51%
BBWI
Bath & Body Works
17.94
-11.02
-38.06%
WSM
Williams-Sonoma
187.53
31.69
20.34%
W
Wayfair
74.18
44.52
150.10%
ETSY
Etsy
53.99
9.95
22.59%
ASO
Academy Sports and Outdoors
56.20
16.72
42.35%
RH Corporate Events
Business Operations and StrategyExecutive/Board Changes
RH Announces Leadership Transition in Gallery Operations
Neutral
Jan 26, 2026
On January 20, 2026, RH announced that it had reached a mutual understanding with Chief Gallery Customer Officer Stefan Duban for his departure from the company, effective January 26, 2026, under the terms of his existing employment arrangements....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.