The growth of the EPS is critical in understanding the current valuation of RH. It is usually expressed as a percentage and is then referred to as the EPS growth rate, which is 25.56%. The long-term trend in EPS shows how well the management of RH is adding value for shareholders.



RH trades as part of the consumer cyclical sector and is in the retail apparel and specialty industry. The company CEO is Gary G. Friedman. RH, formerly Restoration Hardware Inc is a luxury brand in the home furnishings marketplace offering furniture, lighting, textiles, outdoor and garden products. It offers collections through its retail galleries, source books and websites.

Previous Intraday Performance:

The RH shares had a previous change of 3.68% which opened at 126.49 and closed at 131.36. It moved to an intraday high of 132.59 and a low of 125.75.

SeekingAlpha:  BAML digs into hardlines retail

Historical Performance:

Over the last five trading days, RH shares returned 14.41% and in the past 30 trading days it returned 14.64%. Over three months, it changed 20.86%. In one year it has changed 37.94% and within that year its 52-week high was 164.49 and its 52-week low was 74.50. RH stock is 76.32% above its 52 Week Low.

Our calculations result in a 200 day moving average of 121.48 and a 50 day moving average of 121.38. Right now, RH stock is trading 8.13% above its 200 day moving average.

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Liquidity:

The company has a market cap of $2.8b with 21.2m shares outstanding and a float of 18.7m shares. Trading volume was 1,057,557 shares and has experienced an average volume of 1,304,261 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.

Earnings:

The last annual reported EPS for RH was 0.2 which ended on 31st of January 2018, which according to the previous close, that is a PE of 656.80. Based on 11 analyst estimates, the consensus EPS for the next quarter is 1.56. The trailing twelve month EPS is 3.43, which comes to a trailing twelve month PE of 38.30.

Below was the last reported quarterly earnings per share:
10-31-2018:  1.73
07-31-2018:  2.05
04-30-2018:  1.33
01-31-2018:  1.69

Indicators Also to Watch:

Based on the latest filings, there is 193.50% of institutional ownership. Short-interest was 6,980,381, which was 32.90% of shares outstanding. The short-interest ratio or days-to-cover ratio was 5.38. This stock has a high level of short interest and may fall in value in the near term.



I calculated the beta to be 1.68

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Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 3,110.69%, return on assets is 6.38%, profit margin is 6.24%, price-to-sales is 1.44 and price-to-book is 78.08.

Company Score Card:

Results are out of six:
 4  : Growth Expectations Result
 2  : Financial Safety Result
 5  : Past Performance Result
 0  : Valuation Result
 0  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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