Terrible results from RH. Growth has stalled at $814M. This company is now shrinking. And margins are terrible. They cannot even earn $10 million per quarter. This company can support a market cap of no higher than 20*annual earnings which comes to $800 million. The management continues to take excessive compensation and continues to dilute shareholders. They have diluted further. There are over 19 million shares. This shows intrinsic valuation of RH based on revenue and income is only $800/19 = $40 per share. We could easily see RH drop below $40 per share. Even worse, the company's balance sheet shows they are already bankrupt. And that is the reason for the continued dilution of shareholders. Tangible book value is now negative $380 million. Creditors are going to demand redemption. Shareholders could get $0. This is far overvalued to the point of being dangerous. Beware.
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