Is the business good?
How good a business is RH?
RH earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
12%
Return on invested capital · cost of capital 9.0% · 2.9 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Specialty Retail median 8.4% · 12 months to Q1 2026
- Cash conversion
- 2.25×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −5.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 16% |
| FY2021 | 25% |
| FY2022 | 20% |
| FY2023 | 12% |
| FY2024 | 10% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q1 2026
- 44%
- Operating margin12 months to Q1 2026
- 11%
- Net margin12 months to Q1 2026
- 3.0%
- Free cash flow margin
- 6.8%
- Revenue, trailing twelve months
- $3.43B
- Free cash flow, trailing twelve months
- $232M
- Net income, trailing twelve months
- $103M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.