ARHAUS INC (ARHS) Stock Fundamental Analysis
NASDAQ:ARHS - Nasdaq - US04035M1027 - Common Stock - Currency: USD
Taking everything into account, ARHS scores 6 out of 10 in our fundamental rating. ARHS was compared to 121 industry peers in the Specialty Retail industry. While ARHS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ARHS has a correct valuation and a medium 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.
In the past 5 years ARHS has always been profitable.
In the past 5 years ARHS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.61%, ARHS is in the better half of the industry, outperforming 66.94% of the companies in the same industry.
ARHS's Return On Equity of 16.72% is fine compared to the rest of the industry. ARHS outperforms 74.38% of its industry peers.
ARHS has a Return On Invested Capital of 6.60%. This is in the better half of the industry: ARHS outperforms 63.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARHS is above the industry average of 13.07%.
The last Return On Invested Capital (6.60%) for ARHS is well below the 3 year average (16.29%), which needs to be investigated, but indicates that ARHS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 16.72% | ||
| ROIC | 6.6% |
ROA(3y)10.56%
ROA(5y)7.82%
ROE(3y)40.63%
ROE(5y)N/A
ROIC(3y)16.29%
ROIC(5y)17.01%
1.3 Margins
With a decent Profit Margin value of 4.53%, ARHS is doing good in the industry, outperforming 75.21% of the companies in the same industry.
In the last couple of years the Profit Margin of ARHS has grown nicely.
ARHS has a Operating Margin of 5.67%. This is in the better half of the industry: ARHS outperforms 72.73% of its industry peers.
ARHS's Operating Margin has improved in the last couple of years.
The Gross Margin of ARHS (38.98%) is comparable to the rest of the industry.
ARHS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.67% | ||
| PM (TTM) | 4.53% | ||
| GM | 38.98% |
OM growth 3Y16.64%
OM growth 5Y2.23%
PM growth 3Y26.76%
PM growth 5Y18.12%
GM growth 3Y-1.61%
GM growth 5Y2.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARHS is creating some value.
The number of shares outstanding for ARHS has been increased compared to 1 year ago.
Compared to 5 years ago, ARHS has more shares outstanding
Compared to 1 year ago, ARHS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.35 indicates that ARHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARHS's Altman-Z score of 2.35 is in line compared to the rest of the industry. ARHS outperforms 52.89% of its industry peers.
ARHS has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
ARHS's Debt to FCF ratio of 1.11 is amongst the best of the industry. ARHS outperforms 80.99% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that ARHS is not too dependend on debt financing.
ARHS has a Debt to Equity ratio of 0.15. This is in the better half of the industry: ARHS outperforms 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.7
WACC9.49%
2.3 Liquidity
ARHS has a Current Ratio of 1.26. This is a normal value and indicates that ARHS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ARHS (1.26) is comparable to the rest of the industry.
ARHS has a Quick Ratio of 1.26. This is a bad value and indicates that ARHS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ARHS (0.57) is comparable to the rest of the industry.
The current and quick ratio evaluation for ARHS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for ARHS have decreased strongly by -46.05% in the last year.
ARHS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.52% yearly.
Looking at the last year, ARHS shows a small growth in Revenue. The Revenue has grown by 0.71% in the last year.
The Revenue has been growing by 20.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-46.05%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%-63.64%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%5.49%
3.2 Future
The Earnings Per Share is expected to grow by 6.67% on average over the next years.
Based on estimates for the next years, ARHS will show a small growth in Revenue. The Revenue will grow by 7.21% on average per year.
EPS Next Y-12.94%
EPS Next 2Y1.27%
EPS Next 3Y6.39%
EPS Next 5Y6.67%
Revenue Next Year5.1%
Revenue Next 2Y6.36%
Revenue Next 3Y6.97%
Revenue Next 5Y7.21%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 22.90, ARHS is valued on the expensive side.
66.12% of the companies in the same industry are more expensive than ARHS, based on the Price/Earnings ratio.
ARHS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 19.07, ARHS is valued on the expensive side.
ARHS's Price/Forward Earnings ratio is in line with the industry average.
ARHS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 19.07 |
4.2 Price Multiples
ARHS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARHS is cheaper than 70.25% of the companies in the same industry.
63.64% of the companies in the same industry are more expensive than ARHS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.72 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
ARHS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y1.27%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
No dividends for ARHS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.39
-0.16 (-1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.33%
Inst Owner Change2.12%
Ins Owners5.31%
Ins Owner Change7.77%
Market Cap1.32B
Analysts75
Price Target10.07 (7.24%)
Short Float %10.41%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP120.85%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.05%
Min EPS beat(2)-36.28%
Max EPS beat(2)12.17%
EPS beat(4)2
Avg EPS beat(4)-1.88%
Min EPS beat(4)-36.28%
Max EPS beat(4)33.22%
EPS beat(8)6
Avg EPS beat(8)71.61%
EPS beat(12)10
Avg EPS beat(12)73.06%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)-3%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)-3%
Revenue beat(8)3
Avg Revenue beat(8)-1.24%
Revenue beat(12)6
Avg Revenue beat(12)1.03%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-12.97%
PT rev (3m)-17.97%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)-0.56%
EPS NY rev (3m)-13.68%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 19.07 | ||
| P/S | 1.03 | ||
| P/FCF | 27.72 | ||
| P/OCF | 8.44 | ||
| P/B | 3.79 | ||
| P/tB | 3.92 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)0.41
EY4.37%
EPS(NY)0.49
Fwd EY5.24%
FCF(TTM)0.34
FCFY3.61%
OCF(TTM)1.11
OCFY11.85%
SpS9.13
BVpS2.48
TBVpS2.4
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 16.72% | ||
| ROCE | 8.82% | ||
| ROIC | 6.6% | ||
| ROICexc | 8.9% | ||
| ROICexgc | 9.07% | ||
| OM | 5.67% | ||
| PM (TTM) | 4.53% | ||
| GM | 38.98% | ||
| FCFM | 3.71% |
ROA(3y)10.56%
ROA(5y)7.82%
ROE(3y)40.63%
ROE(5y)N/A
ROIC(3y)16.29%
ROIC(5y)17.01%
ROICexc(3y)22.28%
ROICexc(5y)30.4%
ROICexgc(3y)22.81%
ROICexgc(5y)34.8%
ROCE(3y)21.77%
ROCE(5y)22.73%
ROICexcg growth 3Y-40.08%
ROICexcg growth 5Y-10.67%
ROICexc growth 3Y-36.41%
ROICexc growth 5Y-9.4%
OM growth 3Y16.64%
OM growth 5Y2.23%
PM growth 3Y26.76%
PM growth 5Y18.12%
GM growth 3Y-1.61%
GM growth 5Y2.07%
F-Score5
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 136.17% | ||
| Cap/Sales | 8.47% | ||
| Interest Coverage | 14.34 | ||
| Cash Conversion | 102.44% | ||
| Profit Quality | 81.84% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 2.35 |
F-Score5
WACC9.49%
ROIC/WACC0.7
Cap/Depr(3y)167.27%
Cap/Depr(5y)155.74%
Cap/Sales(3y)6.66%
Cap/Sales(5y)5.71%
Profit Quality(3y)44.67%
Profit Quality(5y)347.09%
High Growth Momentum
Growth
EPS 1Y (TTM)-46.05%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%-63.64%
EPS Next Y-12.94%
EPS Next 2Y1.27%
EPS Next 3Y6.39%
EPS Next 5Y6.67%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%5.49%
Revenue Next Year5.1%
Revenue Next 2Y6.36%
Revenue Next 3Y6.97%
Revenue Next 5Y7.21%
EBIT growth 1Y-46.83%
EBIT growth 3Y36.28%
EBIT growth 5Y23.47%
EBIT Next Year61.4%
EBIT Next 3Y28.16%
EBIT Next 5Y21.16%
FCF growth 1Y1293.43%
FCF growth 3Y-26.06%
FCF growth 5Y27.06%
OCF growth 1Y233.61%
OCF growth 3Y0.21%
OCF growth 5Y46.37%