RH FCF Yield Analysis
Updated 275h ago·SEC filings & market data
Key Takeaway
The FCF yield of 7.2% means that, for every $100 of stock you own, the company generates $7.20 in free cash flow—cash left after operating costs and capital expenses—each year.
Sector Performance
77th percentileRH
7.2%
Sector Median
4.2%
Sector Avg
9.3%
Prior Period
8.0%(Aug 2026)
Deep Analysis
The FCF yield of 7.2% means that, for every $100 of stock you own, the company generates $7.20 in free cash flow—cash left after operating costs and capital expenses—each year.
This sits above the sector median of 4.1%, placing RH in the 77th percentile among its peers. The trend is stable across the last 8 quarters, though the quarter-over-quarter change is -10.0% and the year-over-year change is not available. This combination of a yield above peers but a recent 10% quarterly drop signals solid cash generation with some short-term softening, creating both opportunity for income-focused investors and risk of further declines. The high relative yield alone would support a more positive view, but the quarterly decline and missing annual comparison align with the overall CAUTIOUS verdict.
Frequently Asked Questions
What does the FCF Yield tell investors about RH?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are RH's closest peers by FCF Yield?
The closest peers by FCF Yield include: RARE (-18.7%), CG (-19.3%), RXRX (-20.3%), PLUG (-22.0%), NTLA (-22.5%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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7.2%
Sector Median
4.2%
Sector Avg
9.3%
How RH's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.