Trade-Ideas LLC identified
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Restoration Hardware Holdings as such a stock due to the following factors:
- RH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $84.1 million.
- RH is down 7.8% today from today's close.
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More details on RH:
Restoration Hardware Holdings, Inc., together with its subsidiaries, engages in the retail of home furnishings. Its product categories include furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and children's furnishings. RH has a PE ratio of 15. Currently there are 8 analysts that rate Restoration Hardware Holdings a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Restoration Hardware Holdings has been 2.2 million shares per day over the past 30 days. Restoration Hardware has a market cap of $1.5 billion and is part of the services sector and retail industry. The stock has a beta of 1.43 and a short float of 26.1% with 3.54 days to cover. Shares are down 51.4% year-to-date as of the close of trading on Monday.
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rates Restoration Hardware Holdings as a
. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 6.6% when compared to the same quarter one year prior, going from $19.43 million to $20.71 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 9.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
- Net operating cash flow has significantly decreased to -$31.25 million or 548.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- RH's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 60.38%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, RH is still more expensive than most of the other companies in its industry.
- You can view the full Restoration Hardware Holdings Ratings Report.