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RH(RH)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$115.19
10/07/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for RH

10/07/2026: RH (1-star) is currently NOT-A-BUY. Pass it for now.

RH is a prominent luxury retailer offering high-end furniture, decor, and integrated lifestyle services, positioning itself through an immersive 'gallery' retail model. The company's strengths lie in its strong brand identity, high-margin product curation, and unique shopping experience that captures affluent consumers. Its primary growth story revolves around international gallery expansion and scaling its hospitality and design ecosystems. Risks remain significant, however, due to high sensitivity to interest rate cycles, housing market volatility, and the capital-intensive nature of its expansion strategy. The stock is best suited for growth-oriented investors who can tolerate cyclical volatility and monitor the progress of international market penetration.

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 potential growth through international expansion, though it is currently sensitive to cyclical economic headwinds.
Momentum investorMixed fitMomentum depends on clear signals of a housing market recovery and successful international gallery penetration.
Value investorMixed fitThe valuation varies significantly with market sentiment regarding interest rates and consumer housing demand.
Dividend investorWeak fitRH does not pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitThe stock exhibits high price volatility due to its cyclical nature and focus on luxury consumer spending.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock price is highly reactive to macro-economic data, particularly housing and interest rate trends.
Valuation riskMedium / highInvestors often oscillate between valuing RH as a growth stock or a cyclical retailer, leading to valuation swings.
Competition risk (high-end home furnishing competition)MediumThe luxury home space is crowded with established players and new luxury-adjacent retail concepts.
Business qualityStrongRH has built a distinct, high-margin brand franchise that is difficult for competitors to replicate.
Dividend incomeLow / noneThe company does not provide income, as all free cash is utilized for operations and expansion.
Execution riskMedium / highSuccessfully expanding the unique gallery model into international markets involves complex logistical and brand-localization challenges.

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 -8.63%
Avg. Invested days 32
Today’s Advisory PASS
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 10/07/2026

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 105.8% and approximately 72.8% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 18.11% 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 2.22B USD
Price to earnings Ratio 20.7
1Y Target Price 165.82
Price to earnings Ratio 20.7
1Y Target Price 165.82
Volume (30-day avg) 826.3K shares
Beta 1.91
52 Weeks Range 106.30 - 239.40
Updated Date 10/07/2026
52 Weeks Range 106.30 - 239.40
Updated Date 10/07/2026
Dividends yield (FY) -
Basic EPS (TTM) 5.66

How Company Makes Money

Business areaWhat it includesRetail investor read
Retail GalleriesPhysical sales of furniture, lighting, and decor within RH Design Galleries.This is the primary engine of the brand's luxury aesthetic and high-margin product sales.
Direct-to-ConsumerOnline sales, catalogs, and integrated design services.This segment drives efficiency and reach beyond the physical gallery footprint.
GeographyOperations primarily in North America with increasing exposure to European and international markets.International expansion is the key to diversifying away from the North American housing cycle.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Earnings Date

Report Date 2026-09-10
When After Market
Estimate 0.42
Actual 2.7

Profitability

Profit Margin 3.23%
Operating Margin (TTM) 7.18%

Management Effectiveness

Return on Assets (TTM) 3.45%
Return on Equity (TTM) 280.72%

Valuation

Trailing PE 20.7
Forward PE 22.68
Enterprise Value 6.34B
Price to Sales(TTM) 0.64
Enterprise Value 6.34B
Price to Sales(TTM) 0.64
Enterprise Value to Revenue 1.84
Enterprise Value to EBITDA 12.47
Shares Outstanding 18.93M
Shares Floating 13.78M
Shares Outstanding 18.93M
Shares Floating 13.78M
Percent Insiders 18.11
Percent Institutions 105.79

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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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.

About RH

Exchange NYSE
Headquarters Corte Madera, CA, United States
IPO Launch date 1998-06-19
Chairman & CEO Mr. Gary G. Friedman
Sector Consumer Cyclical
Industry Specialty Retail
Full time employees 6510
Full time employees 6510

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.

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