The company reports 1.73
B of total liabilities with total debt to equity ratio (D/E) of 2.9, which may imply that Restoration Hardware relies heavily on debt financing.
Macroaxis provides advice on Restoration Hardware Holdings to complement and cross-verify current
analyst consensus on Restoration Hardware. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
We determine the current worth of RH using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of RH based exclusively on its
fundamental and basic
technical indicators. By analyzing RH's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
RH's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of RH. We calculate exposure to RH's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to RH's related companies.
RH Investment Alerts
RH investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring RH performance across your portfolios.Please check all
investment alerts for RH
RH Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare RH value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across RH competition to find
correlations between indicators driving the intrinsic value of RH.
RH Gross Profit
RH Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing RH previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show RH Gross Profit growth over the last 10 years. Please check RH's
gross profit and other
fundamental indicators for more details.
What is the case for RH Investors
Restoration Hardware generated the yearly revenue of 3.23
B. Reported Net Income was 405.68
M with gross profit of 1.33
B.
| 2010 | 2014 | 2020 | 2021 (projected) |
Receivables | 22.03 M | 48.98 M | 73.04 M | 52.11 M | Inventories | 453.85 M | 438.7 M | 544.23 M | 580.8 M |
Margins Breakdown
Restoration profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Restoration Hardware itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Restoration Hardware profit margins.
| Operating Margin | 13.29 |
| EBITDA Margin | 14.96 |
| Gross Margin | 43.96 |
| Profit Margin | 7.59 |
Restoration Hardware Average Assets is increasing over the last 5 years. The previous year's value of Restoration Hardware Average Assets was 1,164,508,947. Restoration Hardware Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 5 years. The current value of Restoration Hardware Earnings Before Interest Taxes and Depreciation Amortization USD is 194,394,055. Furthermore, Restoration Hardware Earnings before Tax is increasing over the last 5 years. The current value of Restoration Hardware Earnings before Tax is 143,885,724. Restoration Hardware Average Assets is nearly stable at the moment. Restoration Hardware Earnings Before Interest Taxes and Depreciation Amortization USD is nearly stable at the moment. Furthermore, Restoration Hardware Earnings before Tax is increasing over the last 5 years. The current value of Restoration Hardware Earnings before Tax is 143,885,724.
Possible January bounce-back of Restoration?
The value at risk is down to -4.04 as of today. Restoration Hardware Holdings exhibits very low volatility with skewness of 0.72 and kurtosis of 1.5. However, we advise investors to further study Restoration Hardware Holdings technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Restoration Hardware's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Restoration Hardware's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Restoration Hardware Implied Volatility
Restoration Hardware's implied volatility exposes the market's sentiment of Restoration Hardware Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Restoration Hardware's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Restoration Hardware stock will not fluctuate a lot when Restoration Hardware's options are near their expiration.
The Current Takeaway on Restoration Hardware Investment
While some companies in the specialty retail industry are either recovering or due for a correction, Restoration Hardware may not be performing as strong as the other in terms of long-term growth potentials. While some stockholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Restoration Hardware.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of RH. Please refer to our
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