Restoration Hardware (RH) | Score-Card Analysis

This score-card analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.

In summary, a company to have an overall score close to 100% must have the following characteristics:

  • Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
  • Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
  • The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.

The overall score ranges from 0% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +70% can be considered good.

This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.

Restoration Hardware (RH)


  • Overall Score: 70,4%
  • Positive sides:
    • Warren Buffett’s Berkshire Hathaway stake in RH is worth $206.3 million as of Sept. 30
    • Clear outperformance over the S&P 500 index in the last 6 months (+ 72.87%)
    • Net Income improved by 73.4% in the last 3 years, Net Margin improved by 40% compared to 3 years ago
    • Quarterly Revenue + 10.3%, Quarterly Operating Income + 29.7% (+ 17.6% Operating Margin)
    • Analysts expect an annual EPS growth rate of 25% for the next 5 years (+ 48% in the next quarter)
    • RH in the last quarter reported better EPS than analysts’ expectations and the stock price reacted by + 5.1%
  • Negative sides:
    • Quarterly Net Margin slightly decreased (-8%)
    • In the last quarter Hedge Funds decreased their positions by 63.7k of shares and the Insiders sold shares for a total of $6.29M

Full description

RH (formerly Restoration Hardware) is an upscale American home-furnishings company headquartered in Corte Madera, California. The company sells its merchandise through its retail stores, catalog, and online.

The overall score of RH is 70% .

In the last 6 months, RH has overperformed the S&P500 index by 72,9% and analysts believe the company is undervalued by 1,6% .

In the last quarter, the company reported revenue of 706,5 million, up by 10,3% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 2612,4 million, up by 23,9% in the last 3 years.

RH reported an operating income of 104,9 million in the last quarter, an improvement of 29,7% compared to the same quarter 12 months earlier, also reporting an improvement of 17,6% in the operating margin. Considering the sum of the last four quarters (TTM), RH reports an operating income of 291,7 Million , a growth of 57,2% compared to three years ago and an improvement of 26,9% in the operating margin.

RH reported a net income of 63,8 million in the last quarter, an improvement of 1,4% compared to the same quarter 12 months earlier, also reporting an improvement of -8,0% in the net margin. The TTM net income is 158 million , a growth of 73,4% compared to three years ago and the net margin has improved by 40,0% .

In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 48,0% and a growth in revenue of 7,0% . Furthermore, they expect an annual growth of RH EPS by 25,0% for the next 5 years.

In the last quarter, RH reported better EPS than analysts’ expectations and the stock price reacted by increasing by 5,1% .

Finally, in the last 3 months the Hedge Funds have decreased their positions by 63.7k shares. The Insiders have sold shares worth $6.29M .

Want to know what other types of analysis are available on Click here to find out !!!

This analysis considers numerical data to understand whether a company is good or not based on business growth and whether analysts are positive about it.

If you are interested in identifying a potential entry point, I am waiting for you here to discover the best “buy the dip” of the day and here for the best chart patterns of the day.

Alternatively, if you are interested in statistical analysis before the publication of the earnings report, an analysis of the quarterly report results released or an analysis of the top 20 companies that release the earnings report during the week, I am waiting for you here.

Do you want to stay updated on all the analysis published?

BullDude | Facebook group

BullDude | Telegram channel

Sources & additional info

*The comparison with the S&P 500 index is visible inside the graph.
*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from,,,
*Company information from

If you liked this analysis, share it on Twitter or Facebook with the 2 buttons at the top or bottom of the page!!!

DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.

Posted Under