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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
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | RH offers growth potential through international expansion but is cyclical and sensitive to economic headwinds. |
| Momentum investor | Strong fit while signal remains positive | The stock can experience significant moves based on luxury retail trends and housing market cycles. |
| Value investor | Mixed fit | Valuation is often tied to cyclical expectations, making it difficult to assess as a classic value play. |
| Dividend investor | Weak fit | RH does not pay a regular dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Weak fit | The company's high sensitivity to discretionary spending and cyclical trends makes the stock too volatile for risk-averse investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock frequently reacts sharply to macroeconomic data and consumer spending trends. |
| Valuation risk | Medium / high | Market expectations for luxury growth can lead to significant valuation adjustments. |
| Competition risk (luxury home retail) | Medium | The luxury home market faces constant pressure from niche design brands and online competitors. |
| Business quality | Medium / high | RH maintains a strong brand, though it remains vulnerable to operational execution in a complex global supply chain. |
| Dividend income | Low / none | The lack of dividend payments means investors must rely solely on capital appreciation. |
| Execution risk | Medium / high | Successfully scaling into international markets and hospitality requires precise operational execution. |
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 -14.59% | Avg. Invested days 30 | Today’s Advisory WEAK BUY |
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 2.48B 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 area | What it includes | Retail investor read |
|---|---|---|
| Furniture and Decor | Luxury 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 Services | Restaurant 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)
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.

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