ARHAUS INC (ARHS) Stock Fundamental Analysis
USA - NASDAQ:ARHS - US04035M1027 - Common Stock
9.025 USD
-0.14 (-1.58%)
Taking everything into account, ARHS scores 6 out of 10 in our fundamental rating. ARHS was compared to 122 industry peers in the Specialty Retail industry. ARHS has an excellent profitability rating, but 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
ARHS had positive earnings in the past year.
ARHS had a positive operating cash flow in the past year.
ARHS had positive earnings in each of the past 5 years.
Each year in the past 5 years ARHS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.33%, ARHS is in the better half of the industry, outperforming 71.31% of the companies in the same industry.
ARHS's Return On Equity of 18.35% is fine compared to the rest of the industry. ARHS outperforms 78.69% of its industry peers.
ARHS has a better Return On Invested Capital (7.88%) than 68.85% of its industry peers.
ARHS had an Average Return On Invested Capital over the past 3 years of 16.29%. This is above the industry average of 11.80%.
The last Return On Invested Capital (7.88%) 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 | 5.33% | ||
| ROE | 18.35% | ||
| ROIC | 7.88% |
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 5.40%, ARHS is doing good in the industry, outperforming 77.87% of the companies in the same industry.
ARHS's Profit Margin has improved in the last couple of years.
ARHS has a Operating Margin of 7.06%. This is in the better half of the industry: ARHS outperforms 75.41% of its industry peers.
ARHS's Operating Margin has improved in the last couple of years.
ARHS has a better Gross Margin (39.37%) than 60.66% of its industry peers.
In the last couple of years the Gross Margin of ARHS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.06% | ||
| PM (TTM) | 5.4% | ||
| GM | 39.37% |
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
ARHS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ARHS has more shares outstanding
ARHS has more shares outstanding than it did 5 years ago.
ARHS has a better debt/assets ratio than last year.
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 has a Altman-Z score of 2.35. This is comparable to the rest of the industry: ARHS outperforms 52.46% of its industry peers.
ARHS has a debt to FCF ratio of 0.66. This is a very positive value and a sign of high solvency as it would only need 0.66 years to pay back of all of its debts.
The Debt to FCF ratio of ARHS (0.66) is better than 83.61% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that ARHS is not too dependend on debt financing.
ARHS's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. ARHS outperforms 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.85
WACC9.27%
2.3 Liquidity
ARHS has a Current Ratio of 1.34. This is a normal value and indicates that ARHS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.34, ARHS perfoms like the industry average, outperforming 52.46% of the companies in the same industry.
A Quick Ratio of 0.64 indicates that ARHS may have some problems paying its short term obligations.
ARHS has a Quick ratio (0.64) which 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 | 1.34 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
ARHS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.14%.
ARHS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.52% yearly.
ARHS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.36%.
Measured over the past years, ARHS shows a very strong growth in Revenue. The Revenue has been growing by 20.78% on average per year.
EPS 1Y (TTM)-7.14%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%28.57%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%7.97%
3.2 Future
ARHS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.67% yearly.
ARHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.58% yearly.
EPS Next Y-3.66%
EPS Next 2Y3.74%
EPS Next 3Y8.13%
EPS Next 5Y6.67%
Revenue Next Year6.56%
Revenue Next 2Y6.8%
Revenue Next 3Y7.28%
Revenue Next 5Y7.58%
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
A Price/Earnings ratio of 17.36 indicates a rather expensive valuation of ARHS.
Based on the Price/Earnings ratio, ARHS is valued a bit cheaper than 73.77% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, ARHS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.47, the valuation of ARHS can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARHS indicates a somewhat cheap valuation: ARHS is cheaper than 60.66% of the companies listed in the same industry.
ARHS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 17.47 |
4.2 Price Multiples
ARHS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ARHS is valued a bit cheaper than 75.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.75 | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
ARHS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y3.74%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
ARHS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ARHS (11/14/2025, 2:35:09 PM)
9.025
-0.14 (-1.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners111.65%
Inst Owner Change-0.17%
Ins Owners5.32%
Ins Owner Change2.72%
Market Cap1.27B
Revenue(TTM)1.36B
Net Income(TTM)73.46M
Analysts75
Price Target12.33 (36.62%)
Short Float %8.53%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP0.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.75%
Min EPS beat(2)11.39%
Max EPS beat(2)64.1%
EPS beat(4)3
Avg EPS beat(4)12.85%
Min EPS beat(4)-36.28%
Max EPS beat(4)64.1%
EPS beat(8)6
Avg EPS beat(8)77.53%
EPS beat(12)10
Avg EPS beat(12)61.45%
EPS beat(16)14
Avg EPS beat(16)75.68%
Revenue beat(2)1
Avg Revenue beat(2)2.6%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)5.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)5.32%
Revenue beat(8)3
Avg Revenue beat(8)0.13%
Revenue beat(12)5
Avg Revenue beat(12)-0.56%
Revenue beat(16)9
Avg Revenue beat(16)1.92%
PT rev (1m)0%
PT rev (3m)22.36%
EPS NQ rev (1m)1.83%
EPS NQ rev (3m)14.32%
EPS NY rev (1m)0%
EPS NY rev (3m)10.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 17.47 | ||
| P/S | 0.93 | ||
| P/FCF | 15.75 | ||
| P/OCF | 7.99 | ||
| P/B | 3.18 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 9.46 |
EPS(TTM)0.52
EY5.76%
EPS(NY)0.52
Fwd EY5.72%
FCF(TTM)0.57
FCFY6.35%
OCF(TTM)1.13
OCFY12.51%
SpS9.66
BVpS2.84
TBVpS2.76
PEG (NY)N/A
PEG (5Y)0.4
Graham Number5.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 18.35% | ||
| ROCE | 10.53% | ||
| ROIC | 7.88% | ||
| ROICexc | 11.06% | ||
| ROICexgc | 11.25% | ||
| OM | 7.06% | ||
| PM (TTM) | 5.4% | ||
| GM | 39.37% | ||
| FCFM | 5.93% |
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%
ROICexgc growth 3Y-40.08%
ROICexgc 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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.66 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 424.55% | ||
| Cap/Sales | 5.76% | ||
| Interest Coverage | 19.06 | ||
| Cash Conversion | 138.98% | ||
| Profit Quality | 109.97% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.35 |
F-Score5
WACC9.27%
ROIC/WACC0.85
Cap/Depr(3y)267.91%
Cap/Depr(5y)216.12%
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)-7.14%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%28.57%
EPS Next Y-3.66%
EPS Next 2Y3.74%
EPS Next 3Y8.13%
EPS Next 5Y6.67%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%7.97%
Revenue Next Year6.56%
Revenue Next 2Y6.8%
Revenue Next 3Y7.28%
Revenue Next 5Y7.58%
EBIT growth 1Y-3.33%
EBIT growth 3Y36.28%
EBIT growth 5Y23.47%
EBIT Next Year70.62%
EBIT Next 3Y29.08%
EBIT Next 5Y21.19%
FCF growth 1Y-9.94%
FCF growth 3Y-26.06%
FCF growth 5Y27.06%
OCF growth 1Y7.8%
OCF growth 3Y0.21%
OCF growth 5Y46.37%
ARHAUS INC / ARHS FAQ
Can you provide the ChartMill fundamental rating for ARHAUS INC?
ChartMill assigns a fundamental rating of 6 / 10 to ARHS.
Can you provide the valuation status for ARHAUS INC?
ChartMill assigns a valuation rating of 4 / 10 to ARHAUS INC (ARHS). This can be considered as Fairly Valued.
Can you provide the profitability details for ARHAUS INC?
ARHAUS INC (ARHS) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ARHS stock?
The Price/Earnings (PE) ratio for ARHAUS INC (ARHS) is 17.36 and the Price/Book (PB) ratio is 3.18.
What is the expected EPS growth for ARHAUS INC (ARHS) stock?
The Earnings per Share (EPS) of ARHAUS INC (ARHS) is expected to decline by -3.66% in the next year.