Rh Intrinsic Value – RH Reports No Change in Total Revenue Year-Over-Year for Q3 2023
December 17, 2023
🌧️Earnings Overview
RH ($NYSE:RH) reported total revenue of USD 751.2 million for the third quarter of FY2024 ending October 31, 2023, which is unchanged from the same period of the prior year. Net income was reported to be USD -2.2 million, also identical to the figure from the year before, as announced on December 7, 2023.
Market Price
On Thursday, RH reported that its total revenue for Q3 2023 had not changed year-over-year. Despite this, RH stock opened at $280.7 and closed at $281.4, up by 0.5% from the prior closing price of 279.9. This increase indicates that investors remain optimistic about RH’s future prospects despite not seeing any growth in revenue from the same quarter of the previous year. Analysts are attributing this increase in RH stock prices to the company’s focus on cost efficiencies and strategic investments. RH has been diligent in its efforts to cut costs and streamline operations while investing in new initiatives that are expected to produce long-term returns.
This combination has enabled the company to remain profitable, even in the face of flat revenue growth. Going forward, analysts are hopeful that RH will be able to turn around its fortunes and achieve revenue growth in the upcoming quarters. With RH continuing to invest in cost saving measures and new projects, investors have not lost faith in the company’s potential for future growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rh. RH_Reports_No_Change_in_Total_Revenue_Year-Over-Year_for_Q3_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 3.06k | 223.08 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rh. RH_Reports_No_Change_in_Total_Revenue_Year-Over-Year_for_Q3_2023″>More…
| Operations | Investing | Financing |
| 383.84 | -230.53 | -1.93k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rh. RH_Reports_No_Change_in_Total_Revenue_Year-Over-Year_for_Q3_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.24k | 4.57k | -18.29 |
Key Ratios Snapshot
Some of the financial key ratios for Rh are shown below. RH_Reports_No_Change_in_Total_Revenue_Year-Over-Year_for_Q3_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.3% | 2.5% | 14.1% |
| FCF Margin | ROE | ROA |
| 6.1% | -87.6% | 6.4% |
Analysis – Rh Intrinsic Value
At GoodWhale, we have recently conducted an analysis of RH‘s wellbeing. Taking into account the company’s financials, market trends and other factors, we have calculated the fair value of RH’s shares to be around $418.5 using our proprietary Valuation Line. Notably, RH stock is currently traded at $281.4, meaning there is an opportunity for investors to benefit from a 32.8% discount to fair value. Therefore, now may be an ideal time to consider investing in RH. More…
Peers
Furnishing a home can be a daunting task, but with the help of a reliable home décor company, it can be a fun and exciting experience.
However, RH is not the only home décor company out there. Other popular home décor companies include Maisons du Monde (France), 1847 Goedeker Inc. (USA), and BHG Group AB (Sweden).
– Maisons du Monde France SA ($BER:ZMM)
As of 2022, Maisons du Monde France SA has a market cap of 484.17M and a Return on Equity of 9.35%. The company is a leading retailer of home furnishings and decoration in France.
– 1847 Goedeker Inc ($NYSEAM:GOED)
BHG Group AB, through its subsidiaries, provides services in the areas of healthcare, education, and social services in Sweden. The company offers healthcare services, such as medical care, nursing care, and home healthcare; educational services, including preschools, schools, and adult education; and social services comprising housing and residential care, employment and integration, and crime prevention. As of 2022, the company had a market cap of 2.87B and a ROE of 0.01%.
Summary
RH‘s third quarter financial results for the fiscal year ending October 31 2023 show that total revenue remained unchanged from the same period last year, at USD 751.2 million. Net income was reported as USD -2.2 million, which also has not seen any change when compared to the previous quarter. Despite these flat results, investors will be closely watching growth in RH’s other metrics such as gross profit, operating income and net income margins to make more informed decisions about their investments.
