Restoration Hardware
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Luxury home furnishings retailer Restoration Hardware Holdings (RH-N) gets a score of 6 from StockReports+. It last changed to 6 from 5 in early May, and it has remained the same for five weeks. The recent change in the Average Score was primarily due to an improvement in the Price Momentum and Risk component scores, StockReports+ says. That rating places it above peers including Kate Spade & Co. and Williams-Sonoma Inc., but on par with Cabela's Inc. and Ingram Micro Inc. Of the analysts covering the stock, 19 have a buy rating.
Earnings -- Rating: 7 -- The outlook for its earnings are neutral, as there are mixed earnings expectations and performance. Restoration Hardware's rating of 7 is significantly more bullish than the home furnishings retailers industry average of 4. On Thursday, the company reported quarterly earnings of 23 cents (U.S.) per share, a positive surprise of 16.2 per cent above consensus of 20 cents per share.
Fundamental -- Rating: 9 -- The outlook is positive with high profit margins, low debt levels or growing dividends. Its rating of 9 is significantly more bullish than the home furnishings retailers industry average of 5.4. And its current ratio of 2.6 is the highest within its industry. The company does not pay a dividend. The company's revenue growth has been higher than its industry average for each of the past five years.
Relative Valuation -- Rating: 6 -- The outlook is neutral as its multiples are relatively in-line with the market. Its forward price-to-earnings-to-growth (PEG) ratio of 1.2 represents an 11-per-cent discount to its five-year average of 1.3. It's trailing price-to-earnings ratio of 43.3 represents a 36-per-cent discount to its five-year average of 67.7. If the trailing P/E returned to historical form, the stock would trade at $148.40 (U.S.).
Risk -- Rating: 6 -- The outlook is neutral with stock rated a moderate risk. Its rating of 6 is significantly below the S&P 500 composite index average rating of 8.3. On days when the market is up, Restoration Hardware tends to lag the S&P 500, but on down days the stock performs in-line with the market.
Price Momentum -- Rating: 5 -- The outlook is neutral with its performance relatively in-line with the market. On Thursday, the stock closed at $94.83, 7 per cent below its 52-week high and 35.9 per cent above its 52-week low. The share are currently trading 4.1 per cent above their 50-day moving average of $91.10 and 8.1 per cent above their 200-day moving average of $87.69.
Insider Trading -- Rating: 2 -- The outlook is negative due to a recent or longer term trend of selling by company insiders. That rating is more bearish than the home surnishings retailers industry average of 4.14. Since the beginning of the current quarter, sales by Restoration Hardware executives have totalled $13.5-million (U.S.). Over the past five years, the average sell total for the second quarter has been $42.7-million.
StockReports+ gives each stock an average score that combines the quantitative analysis of six widely-used investment decision-making tools: earnings, fundamentals, relative valuation, risk, price momentum and insider trading. The average score for Cisco is 9 out of 10. The current score places it within the top 15 per cent of stocks scored by StockReports+.
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