RH [NYSE:RH]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For RH [RH], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in January. On average, stock market experts give RH an Outperform rating. The average 12-month price forecast for this stock is $158.63, with the high estimate being $200.00, the low estimate being $90.00 and the median estimate amounting to $160.00. This is compared to its latest closing price of $128.95.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for RH [RH] is sitting at 2.14. This is compared to 1 month ago, when its average rating was 2.19.
For the quarter ending in Jul-18 RH [RH] generated $0.64 billion in sales. That’s 2.76% lower than the average estimate of $0.66 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Tue 26 Mar (In 73 Days).
Fundamental Analysis of RH [RH]
Now let’s turn to look at profitability: with a current Operating Margin for RH [RH] sitting at +5.71 and its Gross Margin at +34.77, this company’s Net Margin is now 4.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 9.82, and its Return on Invested Capital has reached 6.30%. Its Return on Equity is 0.48, and its Return on Assets is 0.11. These metrics all suggest that RH is doing well at using the money it earns to generate returns.
Similarly, its Total Debt to Total Capital is 100.64, while its Total Debt to Total Assets stands at 66.25.
What about valuation? This company’s Enterprise Value to EBITDA is 17.33 and its Total Debt to EBITDA Value is 5.48. The Enterprise Value to Sales for this firm is now 1.45, and its Total Debt to Enterprise Value stands at 0.30.
Shifting the focus to workforce efficiency, RH [RH] earns $469,264 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 61.99 and its Total Asset Turnover is 1.24. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.12 and its Current Ratio is 1.16. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: RH [RH] has 21.18M shares outstanding, amounting to a total market cap of $2.76B. Its stock price has been found in the range of 74.50 to 164.49. At its current price, it has moved by -20.86% from its 52-week high, and it has moved 74.74% from its 52-week low.
This stock’s Beta value is currently 1.68, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 56.90. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is RH [RH] a Reliable Buy?
RH [RH] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.