RH [NYSE:RH]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to RH [RH], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in January. On average, stock market experts give RH an Outperform rating. Its stock price has been found in the range of 84.19 to 164.49. This is compared to its latest closing price of $114.16.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for RH [RH] is sitting at 2.36. This is compared to 1 month ago, when its average rating was 2.14.
For the quarter ending in Jan-19 RH [RH] generated $0.67 billion in sales. That’s 2.10% lower than the average estimate of $0.69 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.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Mon 10 Jun (In 55 Days).
Fundamental Analysis of RH [RH]
Now let’s turn to look at profitability: with a current Operating Margin for RH [RH] sitting at +12.09 and its Gross Margin at +40.17, this company’s Net Margin is now 6.00%. 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 26.39, and its Return on Invested Capital has reached 19.50%. Its Return on Assets is 8.51.
Similarly, its Total Debt to Total Capital is 101.99, while its Total Debt to Total Assets stands at 65.22.
What about valuation? This company’s Enterprise Value to EBITDA is 9.00 and its Total Debt to EBITDA Value is 3.12. The Enterprise Value to Sales for this firm is now 1.35, and its Total Debt to Enterprise Value stands at 0.25.
Shifting the focus to workforce efficiency, RH [RH] earns $481,856 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 39.62 and its Total Asset Turnover is 1.42. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.13 and its Current Ratio is 0.73. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
RH [RH] has 20.59M shares outstanding, amounting to a total market cap of $2.35B. Its stock price has been found in the range of 84.19 to 164.49. At its current price, it has moved by -30.01% from its 52-week high, and it has moved 36.74% from its 52-week low.
This stock’s Beta value is currently 1.55, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 42.73. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is RH [RH] a Reliable Buy?
Shares of RH [RH], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.