MeritValue

RH

RHdata completeness 88%16 fiscal years on file
The thesis, from the filings

RH earns about 111% on equity, and has bought back 36% of its shares over 5 years. The applicable estimate puts fair value near $66.79 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$3.76B1$3.59B2$3.03B3$3.18B3$3.44B3
Net income$688.5M4$528.6M5$127.6M6$72.4M6$124.8M6
Operating cash flow$662.1M7$403.7M8$202.2M9$17.1M9$452.2M9
Capital expenditure$185.4M10$173.6M11$269.4M12$230.8M12$199.8M12
Free cash flow (derived)$476.7M7$230M8−$67.1M9−$213.7M9$252.4M9
Total debt$14.8M13$1.16M14———
Cash & equivalents$2.18B15$1.51B16$123.7M16$30.4M16$41.2M16
Diluted shares31.1M26.6M21.6M20.0M19.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$30.62
your share of equity
Profit it earned you last year
$63.05
Free cash flow it threw off
$127.53
Debt you’d be carrying
—

10 shares is a claim on $30.62 of net worth that earned you $63.05 and generated $127.53 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
111% avg · 5y
FY22 59%FY23 67%FY24 —FY25 —FY26 206%

It earned an average 111% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−36% shares · 5y

Share count is down 36% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 92% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$66.79
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$127.6M
  • growthAssumed0.0%
Graham Number
$20.85
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-01-29 · accession 0001558370-24-004248 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2023-01-28 · accession 0001558370-25-004329 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2024-02-03 · accession 0001104659-26-037992 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2022-01-29 · accession 0001558370-24-004248 (NetIncomeLoss)
  5. 10-K · period ending 2023-01-28 · accession 0001558370-25-004329 (NetIncomeLoss)
  6. 10-K · period ending 2024-02-03 · accession 0001104659-26-037992 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-29 · accession 0001558370-24-004248 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-01-28 · accession 0001558370-25-004329 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-02-03 · accession 0001104659-26-037992 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-29 · accession 0001558370-24-004248 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-01-28 · accession 0001558370-25-004329 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-02-03 · accession 0001104659-26-037992 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-01-29 · accession 0001558370-22-004753 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-01-28 · accession 0001558370-23-004942 (LongTermDebtCurrent)
  15. 10-K · period ending 2022-01-29 · accession 0001558370-25-004329 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-01-28 · accession 0001104659-26-037992 (CashAndCashEquivalentsAtCarryingValue)