RH (RH) Stock Analysis
Verdict: AVOID
Luxury brand equity is being eroded by high leverage and persistent earnings misses, as aggressive CEO selling signals a lack of near-term floor.
Investment score: 38/100
Analysis as of
Is RH stock worth reviewing? The TradeMates thesis
High-leverage luxury retailer with deteriorating margins and massive insider selling.
7-factor investment score
- Valuation: 25/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 65/100 (weight 15%)
- Earnings Quality: 20/100 (weight 15%)
- Insider Sentiment: 15/100 (weight 10%)
- Analyst Consensus: 40/100 (weight 10%)
- Risk-Adjusted Return: 35/100 (weight 15%)
RH opportunities and risks
What speaks for RH
- Aggressive 2030 EPS Projections
What speaks against RH
- Extreme Financial Leverage and Solvency Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| RH | 34.7x | 1.0x | 14.2x | 43.5% | 3.0% | 6.1% |
| WSM | 24.6x | 3.3x | 14.6x | 46.1% | 13.8% | 4.2% |
| W | n/a | 1.0x | 115.1x | 30.1% | -2.4% | 3.8% |
| BOBS | 47.9x | 1.7x | 26.6x | 45.1% | 3.5% | 0.8% |
| ARHS | 17.2x | 0.8x | 8.5x | 38.7% | 4.7% | 1.2% |
| HVT | 44.2x | 0.5x | 10.0x | 60.7% | 1.2% | 5.6% |
| Peer median | 24.6x | 1.0x | 14.6x | 45.1% | 3.5% | 3.8% |
Frequently asked questions about RH (RH)
Is RH stock a good investment?
The TradeMates model rates RH as AVOID with an investment score of 38/100. High-leverage luxury retailer with deteriorating margins and massive insider selling. This is algorithmic model output, not personal investment advice.
Is RH stock a buy?
The TradeMates model verdict for RH is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.