ARHAUS INC (ARHS)
US04035M1027 - Common Stock
Overall ARHS gets a fundamental rating of 5 out of 10. We evaluated ARHS against 120 industry peers in the Specialty Retail industry. ARHS scores excellent on profitability, but there are some minor concerns on its financial health. ARHS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARHS was profitable.
In the past year ARHS had a positive cash flow from operations.
Each year in the past 5 years ARHS has been profitable.
In the past 5 years ARHS always reported a positive cash flow from operatings.
1.2 Ratios
ARHS's Return On Assets of 6.49% is fine compared to the rest of the industry. ARHS outperforms 74.58% of its industry peers.
ARHS's Return On Equity of 24.47% is amongst the best of the industry. ARHS outperforms 80.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.34%, ARHS is in the better half of the industry, outperforming 71.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARHS is significantly above the industry average of 12.30%.
The last Return On Invested Capital (9.34%) for ARHS is well below the 3 year average (18.12%), which needs to be investigated, but indicates that ARHS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 24.47% | ||
| ROIC | 9.34% |
ROA(3y)9.86%
ROA(5y)7.55%
ROE(3y)44.06%
ROE(5y)N/A
ROIC(3y)18.12%
ROIC(5y)18.51%
1.3 Margins
ARHS has a better Profit Margin (6.19%) than 81.36% of its industry peers.
ARHS's Profit Margin has improved in the last couple of years.
ARHS's Operating Margin of 7.84% is fine compared to the rest of the industry. ARHS outperforms 77.97% of its industry peers.
In the last couple of years the Operating Margin of ARHS has grown nicely.
ARHS has a better Gross Margin (39.72%) than 61.02% of its industry peers.
ARHS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.84% | ||
| PM (TTM) | 6.19% | ||
| GM | 39.72% |
OM growth 3Y27.55%
OM growth 5YN/A
PM growth 3Y59.77%
PM growth 5YN/A
GM growth 3Y2.2%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARHS is still creating some value.
Compared to 1 year ago, ARHS has more shares outstanding
The debt/assets ratio for ARHS has been reduced compared to a year ago.
2.2 Solvency
ARHS has an Altman-Z score of 2.45. This is not the best score and indicates that ARHS is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.45, ARHS perfoms like the industry average, outperforming 55.08% of the companies in the same industry.
The Debt to FCF ratio of ARHS is 4.23, which is a neutral value as it means it would take ARHS, 4.23 years of fcf income to pay off all of its debts.
ARHS has a better Debt to FCF ratio (4.23) than 66.10% of its industry peers.
ARHS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
ARHS has a Debt to Equity ratio of 0.17. This is in the better half of the industry: ARHS outperforms 65.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.91
WACC10.25%
2.3 Liquidity
A Current Ratio of 1.23 indicates that ARHS should not have too much problems paying its short term obligations.
ARHS has a Current ratio (1.23) which is in line with its industry peers.
A Quick Ratio of 0.52 indicates that ARHS may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, ARHS perfoms like the industry average, outperforming 52.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
ARHS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.10%.
ARHS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 114.96% yearly.
ARHS shows a decrease in Revenue. In the last year, the revenue decreased by -2.45%.
The Revenue has been growing by 36.40% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-45.1%
EPS 3Y114.96%
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)-2.45%
Revenue growth 3Y36.4%
Revenue growth 5YN/A
Sales Q2Q%-2.18%
3.2 Future
Based on estimates for the next years, ARHS will show a decrease in Earnings Per Share. The EPS will decrease by -8.44% on average per year.
ARHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.24% yearly.
EPS Next Y-52.75%
EPS Next 2Y-27.68%
EPS Next 3Y-12.97%
EPS Next 5Y-8.44%
Revenue Next Year-2.92%
Revenue Next 2Y1.68%
Revenue Next 3Y4.2%
Revenue Next 5Y5.24%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.41, ARHS is valued correctly.
70.34% of the companies in the same industry are more expensive than ARHS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, ARHS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.52, ARHS is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ARHS is valued a bit cheaper than 60.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, ARHS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 19.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARHS indicates a somewhat cheap valuation: ARHS is cheaper than 64.41% of the companies listed in the same industry.
ARHS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.24 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
The excellent profitability rating of ARHS may justify a higher PE ratio.
ARHS's earnings are expected to decrease with -12.97% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-27.68%
EPS Next 3Y-12.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.44%, ARHS is a good candidate for dividend investing.
ARHS's Dividend Yield is rather good when compared to the industry average which is at 3.45. ARHS pays more dividend than 94.07% of the companies in the same industry.
ARHS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
5.2 History
ARHS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
89.39% of the earnings are spent on dividend by ARHS. This is not a sustainable payout ratio.
DP89.39%
EPS Next 2Y-27.68%
EPS Next 3Y-12.97%
ARHAUS INC
NASDAQ:ARHS (1/3/2025, 8:20:24 PM)
After market: 9.19 0 (0%)9.19
-0.23 (-2.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners117.7%
Inst Owner Change-0.56%
Ins Owners4.58%
Ins Owner Change5.26%
Market Cap1.29B
Analysts80
Price Target11.82 (28.62%)
Short Float %11.46%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.44% |
Dividend Growth(5Y)N/A
DP89.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.3%
Min EPS beat(2)-16.62%
Max EPS beat(2)33.22%
EPS beat(4)3
Avg EPS beat(4)142.22%
Min EPS beat(4)-16.62%
Max EPS beat(4)521.22%
EPS beat(8)7
Avg EPS beat(8)85.75%
EPS beat(12)11
Avg EPS beat(12)96.63%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.17%
Min Revenue beat(2)-4.97%
Max Revenue beat(2)-3.37%
Revenue beat(4)2
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)9.49%
Revenue beat(8)4
Avg Revenue beat(8)-0.72%
Revenue beat(12)8
Avg Revenue beat(12)2.64%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.72%
PT rev (3m)-21.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-73.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-19.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 19.52 | ||
| P/S | 1.02 | ||
| P/FCF | 100.24 | ||
| P/OCF | 8.26 | ||
| P/B | 4.03 | ||
| P/tB | 4.17 | ||
| EV/EBITDA | 8.87 |
EPS(TTM)0.56
EY6.09%
EPS(NY)0.47
Fwd EY5.12%
FCF(TTM)0.09
FCFY1%
OCF(TTM)1.11
OCFY12.1%
SpS9.02
BVpS2.28
TBVpS2.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 24.47% | ||
| ROCE | 12.52% | ||
| ROIC | 9.34% | ||
| ROICexc | 12.03% | ||
| ROICexgc | 12.25% | ||
| OM | 7.84% | ||
| PM (TTM) | 6.19% | ||
| GM | 39.72% | ||
| FCFM | 1.02% |
ROA(3y)9.86%
ROA(5y)7.55%
ROE(3y)44.06%
ROE(5y)N/A
ROIC(3y)18.12%
ROIC(5y)18.51%
ROICexc(3y)32.36%
ROICexc(5y)31.63%
ROICexgc(3y)35.8%
ROICexgc(5y)36.31%
ROCE(3y)24.31%
ROCE(5y)24.83%
ROICexcg growth 3Y-25.15%
ROICexcg growth 5YN/A
ROICexc growth 3Y-19.68%
ROICexc growth 5YN/A
OM growth 3Y27.55%
OM growth 5YN/A
PM growth 3Y59.77%
PM growth 5YN/A
GM growth 3Y2.2%
GM growth 5YN/A
F-Score4
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 4.23 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 399.15% | ||
| Cap/Sales | 11.31% | ||
| Interest Coverage | 21.14 | ||
| Cash Conversion | 115.51% | ||
| Profit Quality | 16.42% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 2.45 |
F-Score4
WACC10.25%
ROIC/WACC0.91
Cap/Depr(3y)247.24%
Cap/Depr(5y)176.01%
Cap/Sales(3y)5.95%
Cap/Sales(5y)4.48%
Profit Quality(3y)180.64%
Profit Quality(5y)356.18%
High Growth Momentum
Growth
EPS 1Y (TTM)-45.1%
EPS 3Y114.96%
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y-52.75%
EPS Next 2Y-27.68%
EPS Next 3Y-12.97%
EPS Next 5Y-8.44%
Revenue 1Y (TTM)-2.45%
Revenue growth 3Y36.4%
Revenue growth 5YN/A
Sales Q2Q%-2.18%
Revenue Next Year-2.92%
Revenue Next 2Y1.68%
Revenue Next 3Y4.2%
Revenue Next 5Y5.24%
EBIT growth 1Y-47.07%
EBIT growth 3Y73.98%
EBIT growth 5YN/A
EBIT Next Year-22.59%
EBIT Next 3Y2.77%
EBIT Next 5Y5.38%
FCF growth 1Y101.31%
FCF growth 3Y-18.19%
FCF growth 5YN/A
OCF growth 1Y152.95%
OCF growth 3Y4.64%
OCF growth 5YN/A