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RH Free Cash Flow per Share

: $14.55 (TTM As of Apr. 2022)
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RH's Free Cash Flow per Share for the three months ended in Apr. 2022 was $3.74. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Apr. 2022 was $14.55.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of RH was -25.30% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 33.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the FCF Growth Rate using Free Cash Flow per Share data.

The historical rank and industry rank for RH's Free Cash Flow per Share or its related term are showing as below:

RH' s 3-Year FCF Growth Rate Range Over the Past 10 Years
Min: -140.9   Med: 16   Max: 69
Current: 33.8

During the past 13 years, RH's highest 3-Year average Free Cash Flow per Share Growth Rate was 69.00% per year. The lowest was -140.90% per year. And the median was 16.00% per year.

RH's 3-Year FCF Growth Rate is ranked better than
69.58% of 687 companies
in the Retail - Cyclical industry
Industry Median: 15.50 vs RH: 33.80

RH Free Cash Flow per Share Historical Data

The historical data trend for RH's Free Cash Flow per Share 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
Free Cash Flow per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.01 6.39 10.11 14.27 15.32

RH Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Free Cash Flow per Share 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 4.51 2.94 4.64 3.23 3.74

RH Free Cash Flow per Share Calculation

Free Cashflow per Share is the amount of Free Cashflow per outstanding share of the company's stock.

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Note: GuruFocus does not calculate Free Cash Flow Per Share when Capital Expenditure is 0.

RH's Free Cash Flow Per Share for the fiscal year that ended in Jan. 2022 is calculated as

Free Cash Flow Per Share(A: Jan. 2022 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(662.114+-185.383)/31.113
=476.731/31.113
=15.32

RH's Free Cash Flow Per Share for the quarter that ended in Apr. 2022 is calculated as

Free Cash Flow Per Share(Q: Apr. 2022 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(135.949+-29.364)/28.527
=106.585/28.527
=3.74

Free Cash Flow per Share for the trailing twelve months (TTM) ended in Apr. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $14.55

* 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.


RH  (NYSE:RH) Free Cash Flow per Share Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Jan22, RH's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Jan22)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=12.13942857/336.12+0.2
=23.61 %

* 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.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


RH Free Cash Flow per Share Related Terms

Thank you for viewing the detailed overview of RH's Free Cash Flow per Share 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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