Stock Analysis on Net

RH (NYSE:RH)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 26, 2023.

Price to Operating Profit (P/OP)
since 2013

Microsoft Excel

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Calculation

RH, P/OP, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of RH Annual Report.


Share Price
The share price exhibited considerable volatility over the analyzed period. Initially, there was a substantial increase from $38.32 in April 2013 to a peak of $96.92 in March 2015. Following this peak, the share price experienced a decline, dropping to $40.56 by March 2016. Afterward, a notable upward trend resumed, culminating in an exceptional surge to $600 in March 2020. The period after this peak was characterized by a sharp decline to $334.28 in March 2021, followed by further decrease to $245.71 in March 2023. Overall, the share price demonstrated significant fluctuations with a dramatic spike around 2020, before stabilizing at lower levels compared to the peak.
Operating Profit Per Share
The operating profit per share (OPPS) showed a general upward trajectory throughout the period, indicating improving operational efficiency or profitability. After initial negative performance of -$1.81 in April 2013, OPPS quickly turned positive and rose steadily, reaching $4.57 in March 2016. This growth trend accelerated in later years, peaking at $42.71 in March 2022 before contracting to $32.76 by March 2023. Despite the slight decline at the end, the overall improvement in operating profit per share suggests strengthening earnings performance over time.
Price to Operating Profit Ratio (P/OP)
The P/OP ratio experienced significant fluctuations, reflective of changing market valuation in relation to operating profitability. Initial data from 2014 shows a very high ratio of 52.17, indicating a market value far exceeding operating profits, possibly due to optimistic growth expectations. This ratio declined sharply to as low as 6.26 by March 2020, implying that market valuation became more closely aligned with operating profits. However, the ratio spiked again to 26.98 in March 2021 coinciding with the sharp decline in share price, before subsequently dropping back to approximately 7.5 in March 2023. This pattern indicates periods of both market optimism and skepticism relative to the company’s operating profit generation.

Comparison to Competitors

RH, P/OP, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).