Is RH (RH) Halal?

NYSE Consumer Cyclical United States $2.5B
✗ NOT HALAL
Confidence: 90/100
RH (RH) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 147.5% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. RH operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from January 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 147.5%
/ 30%
1.1%
/ 30%
4.3%
/ 30%
0.12%
/ 5%
✗ NOT HALAL
DJIM 147.5%
/ 33%
1.1%
/ 33%
4.3%
/ 33%
0.12%
/ 5%
✗ NOT HALAL
MSCI 86.5%
/ 33%
0.7%
/ 33%
2.5%
/ 33%
0.12%
/ 5%
✗ NOT HALAL
S&P 147.5%
/ 33%
1.1%
/ 33%
4.3%
/ 33%
0.12%
/ 5%
✗ NOT HALAL
FTSE 86.5%
/ 33%
0.7%
/ 33%
2.5%
/ 50%
0.12%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
23.7
Forward: 13.1
EPS
$5.53
P/B Ratio
735.1
EV/EBITDA
12.1
EV: $6.4B
Revenue
$3.2B
Growth: 8.9%
Beta
2.1
High volatility
Current Ratio
1.2

Profitability

Gross Margin 44.5%
Operating Margin 12.0%
Net Margin 3.2%
Return on Assets (ROA) 5.2%

Cash Flow & Balance Sheet

Operating Cash Flow$17M
Free Cash Flow-$214M
Total Debt$3.9B
Debt-to-Equity118679.6
Current Ratio1.2
Total Assets$4.6B

Price & Trading

Last Close$132.03
50-Day MA$178.86
200-Day MA$190.58
Avg Volume1.0M
Beta2.1
52-Week Range
$123.03
$257.00

About RH (RH)

CEO
Mr. Gary G. Friedman
Employees
5,690
Website
Sector
Consumer Cyclical
Industry
Specialty Retail
Country
United States
Exchange
NYSE
Market Cap
$2.5B
Currency
USD

RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. It operates through three segments: RH Segment, Waterworks, and Real Estate. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It sells its products through hospitality, websites, sourcebooks, and trade and contract channels, as well as operates RH galleries, RH outlet stores, RH guesthouses, RH Interior design office, and waterworks showrooms. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1980 and is headquartered in Corte Madera, California.

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Frequently Asked Questions

Is RH (RH) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), RH is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is RH's debt ratio?

RH's debt ratio is 147.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 86.5%.

What are RH's key financial metrics?

RH has a market capitalization of $2.5B, trailing P/E ratio of 23.7, and revenue of $3.2B. The company maintains a gross margin of 44.5% and a net margin of 3.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.