RH (RH) ROCE %: 3.45% (As of Apr. 2026)

What is RH ROCE %?

RH RH -0.55% 77 ROCE % is 3.45% as of Apr. 2026. GuruFocus rates RH with a GF Score™ of 77/100 and a GF Value™ of $317.14 (Possible Value Trap). The stock has 7 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. RH's annualized ROCE % for the quarter that ended in Apr. 2026 was 3.45%.

RH (NYSE:RH) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

RH ROCE % Related Terms

RH ROCE % Historical Data

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The historical data trend for RH's ROCE % 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.

RH ROCE % Chart

RH Annual Data

Trend

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Jan25

Jan26

ROCE %

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27.75

13.28

10.52

9.34

10.46

RH Quarterly Data
	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Jan25	Apr25	Jul25	Oct25	Jan26	Apr26
ROCE %	Get a 7-Day Free Trial															6.64	13.92	11.14	10.16	3.45

77GF Score

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ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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RH ROCE % Calculation

RH's annualized ROCE % for the fiscal year that ended in Jan. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2026 )		(A: Jan. 2025 )		(A: Jan. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2026 )		(A: Jan. 2025 )		(A: Jan. 2026 )
	=	395.115	/	( ( (4554.689 - 905.126)	+	(4835.71 - 930.606) )	/ 2 )
	=	395.115	/	( (3649.563	+	3905.104)	/ 2 )
	=	395.115	/	3777.3335
	=	10.46 %

RH's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Apr. 2026 )		(Q: Jan. 2026 )		(Q: Apr. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Apr. 2026 )		(Q: Jan. 2026 )		(Q: Apr. 2026 )
	=	135.596	/	( ( (4835.71 - 930.606)	+	(4947.677 - 996.857) )	/ 2 )
	=	135.596	/	( ( 3905.104	+	3950.82 )	/ 2 )
	=	135.596	/	3927.962
	=	3.45 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 3.45% mean?

RH (RH) has a ROCE % of 3.45% as of Apr. 2026.

Is RH's ROCE % too high?

RH's current ROCE % is 3.45%. The Retail - Cyclical industry median ROCE % is 7.58. RH's value of 3.45% is 54.5% below this industry median. Overall, RH has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.

How does RH's ROCE % compare to ASO and BOBS?

RH's ROCE % of 3.45% can be compared against companies in the Retail - Cyclical industry. The industry median ROCE % is 7.58. RH's value of 3.45% is 54.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Retail - Cyclical company?

The median ROCE % among Retail - Cyclical companies is 7.58, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. RH's current ROCE % of 3.45% is 54.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median ROCE % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RH's current ROCE % is 3.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is RH stock overvalued right now?

Based on GuruFocus' analysis, RH (RH) is currently considered Possible Value Trap. The stock's GF Value™ is $317.14, compared to a current price of $159.04 — trading 49.9% below its estimated fair value. The current ROCE % is 3.45% and 54.5% below the Retail - Cyclical industry median of 7.58. RH's overall GF Score™ is 77/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For RH (RH), the current ROCE % is 3.45% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is RH (RH) Overvalued in 2026?

Based on GuruFocus' analysis, RH stock appears to be undervalued. The current stock price of $159.04 is trading 49.9% below its estimated GF Value™ of $317.14. GuruFocus considers RH to be Possible Value Trap.

Key valuation signals for RH:

ROCE %: 3.45%
GF Value™: $317.14 vs. price of $159.04 (49.9% below fair value)
GF Score™: 77/100 with 7 warning signs
Industry Position: 54.5% below the Retail - Cyclical median

No single metric tells the full story. See the RH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

RH Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies ASO BOBS MNSO BBWI SVV OLPX WINA EYE SBH WOOF TSX:ATD XJAM:ASBH CASY WSM ULTA DKS SHSE:601888 TSCO BBY ADX:ADNOCDIST

Other Exchanges RH:Mexico 1RH:Italy 0KTF:UK RS1:Germany R2HH34:Brazil

Address 15 Koch Road, Corte Madera, CA, USA, 94925

Website https://www.rh.com

RH is a luxury furniture and lifestyle retailer primarily operating in the $136 billion domestic furniture and home furnishing industry. The firm offers merchandise across many categories, including furniture, lighting, textiles, bath, decor, and is growing the presence of its hospitality business with 26 restaurant locations, including RH Guesthouse. RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Estates and Waterworks, for example). RH is fully integrated across channels and is positioned to broaden its addressable market over the next decade via expanding abroad, its World of RH digital platform (highlighting offerings outside of home furnishings), and offerings in architecture, media, and more.

77GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$159.04

Price

$317.14

GF Value

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