RH logo

RH(RH)

upturn advisory logo
EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL RECENCY
1-STAR RATING
WEAK BUY
BUY for 7 days
PROFIT SINCE LAST BUY
-6.85% ▼
LAST CLOSE
$136.61
11/09/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for RH

11/09/2026: RH (1-star) has a low Upturn Star Rating. Not recommended to BUY.

RH is a luxury home furnishings retailer known for its high-end, curated aesthetic and experiential gallery-based business model. The company has successfully evolved from a hardware store into a global lifestyle brand, with a strong focus on controlling its entire ecosystem through vertical integration. Its primary growth opportunity lies in international market expansion and the development of immersive hospitality experiences within its galleries. However, the company faces risks from its significant sensitivity to cyclical housing and economic downturns, as well as the high capital demands of its business model. The stock best suits growth-oriented investors who are comfortable with the volatility inherent in luxury retail.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitRH offers growth potential through international expansion but is cyclical and sensitive to economic headwinds.
Momentum investorStrong fit while signal remains positiveThe stock can experience significant moves based on luxury retail trends and housing market cycles.
Value investorMixed fitValuation is often tied to cyclical expectations, making it difficult to assess as a classic value play.
Dividend investorWeak fitRH does not pay a regular dividend, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitThe company's high sensitivity to discretionary spending and cyclical trends makes the stock too volatile for risk-averse investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock frequently reacts sharply to macroeconomic data and consumer spending trends.
Valuation riskMedium / highMarket expectations for luxury growth can lead to significant valuation adjustments.
Competition risk (luxury home retail)MediumThe luxury home market faces constant pressure from niche design brands and online competitors.
Business qualityMedium / highRH maintains a strong brand, though it remains vulnerable to operational execution in a complex global supply chain.
Dividend incomeLow / noneThe lack of dividend payments means investors must rely solely on capital appreciation.
Execution riskMedium / highSuccessfully scaling into international markets and hospitality requires precise operational execution.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit -14.59%
Avg. Invested days 30
Today’s Advisory WEAK BUY
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/09/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
RH receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
RH has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and strong ownership. In FY2026 versus FY2025, strong earnings growth (+72.3%) and solid cash generation (FCF margin 7.3%) are partially offset by moderate revenue growth (+8.1%), soft profitability (net margin 3.6%).

Financial Health Rating

★★★★★
RH's financial health is supported by solid cash strength, including free-cash-flow generation (7.3% of revenue). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is RH's strongest growth driver at +218.1% FY2026 versus FY2025 (strong, 5 stars). By comparison, earnings growth (+72.3%, strong) is also strong, while revenue growth (+8.1%, moderate) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 107.6% and approximately 72.8% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 18.12% supports management-shareholder alignment.

Top 5 Institutional Investors

FMR Inc 14.97%
BlackRock Inc 10.45%
Alyeska Investment Group, L.P. 9.03%
Vanguard Portfolio Management, LLC 4.11%
Two Sigma Investments LLC 4.03%

Unit Economics (Per $1K Revenue)

★★★★★
RH generates approximately $441 of gross profit, $113 of operating income, and $73 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Moderate margins and solid cash conversion support a 3-star rating, while capital efficiency is soft.

Economic Dimensions

★★★★★
Effective Tax Rate: 25.25%

Quantitative Style Profile

★★★★★
RH has a liquid profile. Weak momentum is the primary drawback, while elevated volatility.

Style Classification

Quality Focused

Value-OrientedHigh VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.48B USD
Price to earnings Ratio 23.14
1Y Target Price 164.41
Price to earnings Ratio 23.14
1Y Target Price 164.41
Volume (30-day avg) 834.4K shares
Beta 1.91
52 Weeks Range 106.30 - 239.40
Updated Date 11/08/2026
52 Weeks Range 106.30 - 239.40
Updated Date 11/08/2026
Dividends yield (FY) -
Basic EPS (TTM) 5.66

How Company Makes Money

Business areaWhat it includesRetail investor read
Furniture and DecorLuxury furniture, lighting, rugs, and accessories sold through retail and direct channels.The core revenue driver is the sale of high-end home products to affluent customers.
Hospitality and ServicesRestaurant operations and professional interior design services.These areas provide unique, value-added experiences that encourage customers to engage more deeply with the brand.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Valuation

Trailing PE 23.14
Forward PE 14.77
Enterprise Value 6.46B
Price to Sales(TTM) 0.72
Enterprise Value 6.46B
Price to Sales(TTM) 0.72
Enterprise Value to Revenue 1.87
Enterprise Value to EBITDA 12.71
Shares Outstanding 18.93M
Shares Floating 13.78M
Shares Outstanding 18.93M
Shares Floating 13.78M
Percent Insiders 18.12
Percent Institutions 107.59

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

Form CRS provides a relationship summary of our automated advisory services, flat subscription fees, and conflicts of interest. Form ADV Part 2A brochure contains complete details on services, billing, and disclosures. If any summary differs from our current regulatory filings, the filed Form ADV controls.