ARHAUS INC (ARHS) Stock Fundamental Analysis
USA - NASDAQ:ARHS - US04035M1027 - Common Stock
10.53 USD
-0.07 (-0.66%)
ARHS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 119 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 decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years ARHS had a positive operating cash flow.
1.2 Ratios
ARHS has a better Return On Assets (5.40%) than 72.27% of its industry peers.
ARHS's Return On Equity of 18.46% is fine compared to the rest of the industry. ARHS outperforms 78.99% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.65%, ARHS is in the better half of the industry, outperforming 67.23% of the companies in the same industry.
ARHS had an Average Return On Invested Capital over the past 3 years of 16.29%. This is above the industry average of 12.29%.
The last Return On Invested Capital (7.65%) 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 | 5.4% | ||
| ROE | 18.46% | ||
| ROIC | 7.65% |
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
Looking at the Profit Margin, with a value of 5.33%, ARHS is in the better half of the industry, outperforming 77.31% of the companies in the same industry.
In the last couple of years the Profit Margin of ARHS has grown nicely.
The Operating Margin of ARHS (6.76%) is better than 73.95% of its industry peers.
In the last couple of years the Operating Margin of ARHS has grown nicely.
The Gross Margin of ARHS (39.34%) is better than 60.50% of its industry peers.
ARHS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.76% | ||
| PM (TTM) | 5.33% | ||
| GM | 39.34% |
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.
Compared to 1 year ago, ARHS has more shares outstanding
Compared to 5 years ago, ARHS has more shares outstanding
The debt/assets ratio for ARHS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.53 indicates that ARHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.53, ARHS is in line with its industry, outperforming 56.30% of the companies in the same industry.
The Debt to FCF ratio of ARHS is 0.93, which is an excellent value as it means it would take ARHS, only 0.93 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARHS (0.93) is better than 80.67% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that ARHS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, ARHS is in the better half of the industry, outperforming 68.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.81
WACC9.47%
2.3 Liquidity
ARHS has a Current Ratio of 1.33. This is a normal value and indicates that ARHS is financially healthy and should not expect problems in meeting its short term obligations.
ARHS has a Current ratio (1.33) which is in line with its industry peers.
ARHS has a Quick Ratio of 1.33. This is a bad value and indicates that ARHS is not financially healthy enough and could expect problems in meeting its short term obligations.
ARHS has a Quick ratio (0.61) which is comparable to the rest of the industry.
ARHS does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.33 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for ARHS have decreased strongly by -20.63% in the last year.
The Earnings Per Share has been growing by 43.52% on average over the past years. This is a very strong growth
ARHS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
ARHS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.78% yearly.
EPS 1Y (TTM)-20.63%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%56.25%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%15.7%
3.2 Future
Based on estimates for the next years, ARHS will show a small growth in Earnings Per Share. The EPS will grow by 6.67% on average per year.
Based on estimates for the next years, ARHS will show a small growth in Revenue. The Revenue will grow by 7.58% on average per year.
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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.06, which indicates a rather expensive current valuation of ARHS.
Based on the Price/Earnings ratio, ARHS is valued a bit cheaper than 70.59% of the companies in the same industry.
ARHS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.77.
The Price/Forward Earnings ratio is 20.38, which indicates a rather expensive current valuation of ARHS.
ARHS's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, ARHS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.06 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
ARHS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ARHS is valued a bit cheaper than the industry average as 68.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.86 | ||
| EV/EBITDA | 11.24 |
4.3 Compensation for Growth
ARHS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y3.74%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
No dividends for ARHS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ARHS (10/22/2025, 10:40:43 AM)
10.53
-0.07 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners111.65%
Inst Owner Change1.46%
Ins Owners5.32%
Ins Owner Change2.72%
Market Cap1.48B
Revenue(TTM)1.34B
Net Income(TTM)71.17M
Analysts75
Price Target12.33 (17.09%)
Short Float %9.55%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP0.67%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.91%
Min EPS beat(2)-36.28%
Max EPS beat(2)64.1%
EPS beat(4)2
Avg EPS beat(4)5.84%
Min EPS beat(4)-36.28%
Max EPS beat(4)64.1%
EPS beat(8)6
Avg EPS beat(8)78.22%
EPS beat(12)10
Avg EPS beat(12)67.47%
EPS beat(16)14
Avg EPS beat(16)74.98%
Revenue beat(2)1
Avg Revenue beat(2)1.16%
Min Revenue beat(2)-3%
Max Revenue beat(2)5.32%
Revenue beat(4)1
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)5.32%
Revenue beat(8)4
Avg Revenue beat(8)0.22%
Revenue beat(12)6
Avg Revenue beat(12)0.02%
Revenue beat(16)9
Avg Revenue beat(16)1.87%
PT rev (1m)0%
PT rev (3m)22.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.27%
EPS NY rev (1m)1.6%
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 | 21.06 | ||
| Fwd PE | 20.38 | ||
| P/S | 1.11 | ||
| P/FCF | 25.86 | ||
| P/OCF | 10.29 | ||
| P/B | 3.85 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 11.24 |
EPS(TTM)0.5
EY4.75%
EPS(NY)0.52
Fwd EY4.91%
FCF(TTM)0.41
FCFY3.87%
OCF(TTM)1.02
OCFY9.72%
SpS9.48
BVpS2.74
TBVpS2.66
PEG (NY)N/A
PEG (5Y)0.48
Graham Number5.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 18.46% | ||
| ROCE | 10.23% | ||
| ROIC | 7.65% | ||
| ROICexc | 10.42% | ||
| ROICexgc | 10.6% | ||
| OM | 6.76% | ||
| PM (TTM) | 5.33% | ||
| GM | 39.34% | ||
| FCFM | 4.3% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.93 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 328.99% | ||
| Cap/Sales | 6.5% | ||
| Interest Coverage | 17.93 | ||
| Cash Conversion | 123.54% | ||
| Profit Quality | 80.66% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.53 |
F-Score5
WACC9.47%
ROIC/WACC0.81
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)-20.63%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%56.25%
EPS Next Y-3.66%
EPS Next 2Y3.74%
EPS Next 3Y8.13%
EPS Next 5Y6.67%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%15.7%
Revenue Next Year6.56%
Revenue Next 2Y6.8%
Revenue Next 3Y7.28%
Revenue Next 5Y7.58%
EBIT growth 1Y-19.78%
EBIT growth 3Y36.28%
EBIT growth 5Y23.47%
EBIT Next Year70.62%
EBIT Next 3Y29.08%
EBIT Next 5Y21.19%
FCF growth 1Y90.69%
FCF growth 3Y-26.06%
FCF growth 5Y27.06%
OCF growth 1Y51.51%
OCF growth 3Y0.21%
OCF growth 5Y46.37%