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RH Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

RH has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for RH's Piotroski F-Score or its related term are showing as below:

RH' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of RH was 8. The lowest was 2. And the median was 5.


RH Piotroski F-Score Historical Data

The historical data trend for RH's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RH Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 6.00 8.00 7.00

RH Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 8.00 7.00 7.00 6.00

Competitive Comparison

For the Specialty Retail subindustry, RH's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

RH Piotroski F-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, RH's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where RH's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Apr22) TTM:Last Year (Apr21) TTM:
Net Income was 226.746 + 184.099 + 147.045 + 200.711 = $759 Mil.
Cash Flow from Operations was 125.843 + 216.964 + 128.432 + 135.949 = $607 Mil.
Revenue was 988.859 + 1006.428 + 902.741 + 957.292 = $3,855 Mil.
Gross Profit was 487.676 + 505.254 + 455.504 + 498.583 = $1,947 Mil.
Average Total Assets from the begining of this year (Apr21)
to the end of this year (Apr22) was
(3237.317 + 3467.152 + 5420.025 + 5540.47 + 5887.937) / 5 = $4710.5802 Mil.
Total Assets at the begining of this year (Apr21) was $3,237 Mil.
Long-Term Debt & Capital Lease Obligation was $3,177 Mil.
Total Current Assets was $3,399 Mil.
Total Current Liabilities was $1,362 Mil.
Net Income was 98.423 + 46.411 + 130.193 + 130.656 = $406 Mil.

Revenue was 709.282 + 844.013 + 812.436 + 860.792 = $3,227 Mil.
Gross Profit was 332.419 + 408.33 + 385.128 + 406.977 = $1,533 Mil.
Average Total Assets from the begining of last year (Apr20)
to the end of last year (Apr21) was
(2429.893 + 2506.409 + 2679.25 + 2898.313 + 3237.317) / 5 = $2750.2364 Mil.
Total Assets at the begining of last year (Apr20) was $2,430 Mil.
Long-Term Debt & Capital Lease Obligation was $1,611 Mil.
Total Current Assets was $989 Mil.
Total Current Liabilities was $1,016 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

RH's current Net Income (TTM) was 759. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

RH's current Cash Flow from Operations (TTM) was 607. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Apr21)
=758.601/3237.317
=0.23433016

ROA (Last Year)=Net Income/Total Assets (Apr20)
=405.683/2429.893
=0.16695509

RH's return on assets of this year was 0.23433016. RH's return on assets of last year was 0.16695509. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

RH's current Net Income (TTM) was 759. RH's current Cash Flow from Operations (TTM) was 607. ==> 607 <= 759 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Apr22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr21 to Apr22
=3176.886/4710.5802
=0.67441501

Gearing (Last Year: Apr21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr20 to Apr21
=1610.856/2750.2364
=0.58571547

RH's gearing of this year was 0.67441501. RH's gearing of last year was 0.58571547. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Apr22)=Total Current Assets/Total Current Liabilities
=3399.061/1361.53
=2.496501

Current Ratio (Last Year: Apr21)=Total Current Assets/Total Current Liabilities
=989.408/1016.172
=0.97366194

RH's current ratio of this year was 2.496501. RH's current ratio of last year was 0.97366194. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

RH's number of shares in issue this year was 28.527. RH's number of shares in issue last year was 31.21. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1947.017/3855.32
=0.50502085

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1532.854/3226.523
=0.47507921

RH's gross margin of this year was 0.50502085. RH's gross margin of last year was 0.47507921. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Apr21)
=3855.32/3237.317
=1.19089975

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Apr20)
=3226.523/2429.893
=1.32784571

RH's asset turnover of this year was 1.19089975. RH's asset turnover of last year was 1.32784571. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+1+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

RH has an F-score of 6 indicating the company's financial situation is typical for a stable company.

RH  (NYSE:RH) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


RH Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of RH's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


RH Business Description

RH logo
Address
15 Koch Road, Suite K, Corte Madera, CA, USA, 94925
RH is a luxury retailer operating in the $112 billion furniture and home furnishing industry. The company offers merchandise across many categories including furniture, lighting, textiles, bath, decor, children, and more and is growing the presence of its hospitality business (with 12 restaurant locations). RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Teen, RH Modern, and Waterworks, for example). The company is fully integrated across store, Web, and catalog channels, and is positioned to broaden its total addressable market over the next decade with the launch of its World of RH digital platform in 2022, along with future offerings in contemporary, antique, bespoke furniture, couture upholstery, and more.
Executives
Preston Jack M officer: CHIEF FINANCIAL OFFICER 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Lee Edward T officer: SEE REMARKS C/O RH, 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Hargarten Christina officer: See Remarks 15 KOCH ROAD SUITE K CORTE MADERA CA 94925
Citragno Glenda M officer: Chief Accounting Officer 15 KOCH ROAD CORTE MADERA CA 94925
Blignaut Ryno officer: See Remarks C/O XOOM CORPORATION 100 BUSH STREET, SUITE 300 SAN FRANCISCO CA 94104
Stanchak David officer: See Remarks C/O RH, 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Stangl Sandra officer: See Remarks 3250 VAN NESS AVENUE SAN FRANCISCO CA 94109
Krane Hilary K director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Belling Keith director C/O RESTORATION HARDWARE HOLDINGS, INC. 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Mitic Kathleen C. director C/O EBAY INC. 2065 HAMILTON AVENUE SAN JOSE CA 95125
Rowghani Ali director 101 SECOND STREET SUITE 1400 SAN FRANCISCO CA 94105
Schlesinger Leonard A director THREE LIMITED PARKWAY COLUMBUS OH 43230
Price Demonty officer: Please See Remarks C/O RESTORATION HARDWARE HOLDINGS, INC. 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Chaya Eri officer: See Remarks 1981 14TH AVE SAN FRANCISCO CA 94116
Boone Karen officer: See Remarks 15 KOCH ROAD SUITE J CORTE MADERA CA 94925

RH Headlines

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