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Upturn AI Summary - About
RH(RH)
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)
Advisory Performance History (Simulated)
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | RH offers potential growth through international expansion, though it is currently sensitive to cyclical economic headwinds. |
| Momentum investor | Mixed fit | Momentum depends on clear signals of a housing market recovery and successful international gallery penetration. |
| Value investor | Mixed fit | The valuation varies significantly with market sentiment regarding interest rates and consumer housing demand. |
| Dividend investor | Weak fit | RH does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Weak fit | The stock exhibits high price volatility due to its cyclical nature and focus on luxury consumer spending. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock price is highly reactive to macro-economic data, particularly housing and interest rate trends. |
| Valuation risk | Medium / high | Investors often oscillate between valuing RH as a growth stock or a cyclical retailer, leading to valuation swings. |
| Competition risk (high-end home furnishing competition) | Medium | The luxury home space is crowded with established players and new luxury-adjacent retail concepts. |
| Business quality | Strong | RH has built a distinct, high-margin brand franchise that is difficult for competitors to replicate. |
| Dividend income | Low / none | The company does not provide income, as all free cash is utilized for operations and expansion. |
| Execution risk | Medium / high | Successfully expanding the unique gallery model into international markets involves complex logistical and brand-localization challenges. |
Price Behavior

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

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 Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
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 area | What it includes | Retail investor read |
|---|---|---|
| Retail Galleries | Physical 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-Consumer | Online sales, catalogs, and integrated design services. | This segment drives efficiency and reach beyond the physical gallery footprint. |
| Geography | Operations 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
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 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
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)
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)
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)
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)
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)
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)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
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)
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)
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)
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)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
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)
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)
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 | Website https://www.rh.com |
Full time employees 6510 | Website https://www.rh.com | ||
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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