Does RH have an economic moat?

Based on its FY2026 SEC filings, the Moat Index scores RH (RH) 57.0 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 63, returns on capital 74, balance-sheet safety 0, capital discipline 80.

Is RH stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $75.31 per share versus a recent price of $187.88 — 149% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has RH's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 57.0 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

RH

RH · Consumer Discretionary · $3.5B mkt cap · FY2026 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power63

Median gross margin 44.3% over 10y, stable.

Returns on capital74

Median ROIC 15.0%, above the 9% hurdle in 86% of years.

Balance-sheet safety0

Net debt/EBITDA 4.4x, interest coverage 2x.

Capital discipline80

Owner earnings +41.7%/yr, share count n/a.

Margin of safety

Above valueOn sale

149% above value

Owner earnings (normalized): $127.6M
Est. intrinsic value / share: $75.31
Recent price: $187.88
Discount to value: 149% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

17 years of fundamentals

The business, in plain English

RH booked $3.4B of revenue in FY2026 in the Consumer Discretionary sector and kept 44.1% of it as gross profit — a solid-margin business by that measure. After every other cost, 3.6% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $772.8M (FY2011) to $3.4B (FY2026) — about 10.5% a year compounded over 15 years.

It earned 11.5% on invested capital in FY2026, with a median of 12.6% across 13 filed years. The Returns on Capital filter above scores it 74/100.

The balance sheet carried $2.4B of total debt in FY2026 against $124.8M of owner earnings — roughly 19.2 years of owner earnings to retire it all. Balance-Sheet Safety scores it 0/100.

The share count fell 41.5% between FY2012 and FY2026 — management has been retiring shares, which concentrates each remaining owner's claim. Capital Discipline scores it 80/100.

Put together: Capital Discipline is the strongest of the four filters (80/100) and Balance-Sheet Safety the weakest (0/100), which is how RH lands at 57/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$3.4B FY2026

Gross marginRevenue kept after cost of goods44.1% FY2026

Return on invested capitalOperating profit on the capital employed11.5% FY2026

Owner earningsCash an owner could take out$124.8M FY2026

Gaps in a line mean that item isn’t in RH’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale57.0 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — RH has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Consumer Discretionary context

#121 of 340 scored Consumer Discretionary companies, ranked by Moat Score.

Nearest peers by Moat Score

#119LESL LESLIE’S, INC.57.7 out of 100, Shallow moatShallow moat
#120BWMN BOWMAN CONSULTING GROUP LTD.57.6 out of 100, Shallow moatShallow moat
#122PSMT PriceSmart, Inc.56.7 out of 100, Shallow moatShallow moat
#123FORR FORRESTER RESEARCH, INC.56.6 out of 100, Shallow moatShallow moat

Compare RH with its nearest peers →All Consumer Discretionary companies on the Index →

Common questions about RH

Does RH have an economic moat?: Based on its FY2026 SEC filings, the Moat Index scores RH (RH) 57.0 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 63, returns on capital 74, balance-sheet safety 0, capital discipline 80.
Is RH stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $75.31 per share versus a recent price of $187.88 — 149% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has RH's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 57.0 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell RH. See the disclaimer.