Trade-Ideas LLC identified
) as a post-market leader 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 $61.7 million.
- RH is up 2.3% 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. It offers products in various categories, such as furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and child and teen furnishings. RH has a PE ratio of 14. 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 2.3 million shares per day over the past 30 days. Restoration Hardware has a market cap of $1.3 billion and is part of the services sector and retail industry. The stock has a beta of 1.53 and a short float of 23.9% with 4.12 days to cover. Shares are down 59.5% year-to-date as of the close of trading on Tuesday.
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rates Restoration Hardware Holdings as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.2%. Since the same quarter one year prior, revenues rose by 11.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.78, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.13, which illustrates the ability to avoid short-term cash problems.
- 37.54% is the gross profit margin for RESTORATION HARDWARE HLDNGS which we consider to be strong. Regardless of RH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.14% trails the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Specialty Retail industry and the overall market, RESTORATION HARDWARE HLDNGS's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Looking at the price performance of RH's shares over the past 12 months, there is not much good news to report: the stock is down 65.58%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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.