ARHAUS INC (ARHS) Stock Fundamental Analysis
USA - NASDAQ:ARHS - US04035M1027 - Common Stock
9.84 USD
+0.44 (+4.68%)
9.84 USD
0 (0%)
ARHS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. ARHS has an excellent profitability rating, 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.
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 5.40%, ARHS is in the better half of the industry, outperforming 71.90% of the companies in the same industry.
ARHS has a Return On Equity of 18.46%. This is in the better half of the industry: ARHS outperforms 79.34% of its industry peers.
The Return On Invested Capital of ARHS (7.65%) is better than 67.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARHS is above the industry average of 11.82%.
The 3 year average ROIC (16.29%) for ARHS is well above the current ROIC(7.65%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of ARHS (5.33%) is better than 77.69% of its industry peers.
ARHS's Profit Margin has improved in the last couple of years.
ARHS has a Operating Margin of 6.76%. This is in the better half of the industry: ARHS outperforms 73.55% of its industry peers.
In the last couple of years the Operating Margin of ARHS has grown nicely.
ARHS's Gross Margin of 39.34% is fine compared to the rest of the industry. ARHS outperforms 61.16% of its industry peers.
In the last couple of years the Gross Margin of ARHS has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARHS is still creating some value.
ARHS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARHS has been increased compared to 5 years ago.
Compared to 1 year ago, ARHS has an improved debt to assets ratio.
2.2 Solvency
ARHS has an Altman-Z score of 2.42. 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 2.42, ARHS perfoms like the industry average, outperforming 53.72% 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.
ARHS has a better Debt to FCF ratio (0.93) than 80.99% of its industry peers.
ARHS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
ARHS's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. ARHS outperforms 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.82
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.33 indicates that ARHS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.33, ARHS is in line with its industry, outperforming 52.07% of the companies in the same industry.
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
ARHS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.14%.
Measured over the past years, ARHS shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.52% on average per year.
Looking at the last year, ARHS shows a decrease in Revenue. The Revenue has decreased by -1.29% in the last year.
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)-1.29%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%7.97%
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.
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 18.92, ARHS is valued on the expensive side.
Based on the Price/Earnings ratio, ARHS is valued a bit cheaper than the industry average as 73.55% of the companies are valued more expensively.
ARHS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
With a Price/Forward Earnings ratio of 19.05, ARHS is valued on the expensive side.
ARHS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ARHS is cheaper than 60.33% of the companies in the same industry.
ARHS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 19.05 |
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 69.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.17 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
The excellent profitability rating of ARHS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.43
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 |
9.84
+0.44 (+4.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners111.65%
Inst Owner Change0.19%
Ins Owners5.32%
Ins Owner Change2.72%
Market Cap1.39B
Revenue(TTM)1.27B
Net Income(TTM)71.17M
Analysts75
Price Target12.33 (25.3%)
Short Float %8.53%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP0.67%
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)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 | 18.92 | ||
| Fwd PE | 19.05 | ||
| P/S | 1.04 | ||
| P/FCF | 24.17 | ||
| P/OCF | 9.62 | ||
| P/B | 3.6 | ||
| P/tB | 3.7 | ||
| EV/EBITDA | 9.8 |
EPS(TTM)0.52
EY5.28%
EPS(NY)0.52
Fwd EY5.25%
FCF(TTM)0.41
FCFY4.14%
OCF(TTM)1.02
OCFY10.4%
SpS9.48
BVpS2.74
TBVpS2.66
PEG (NY)N/A
PEG (5Y)0.43
Graham Number5.66
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 | 2.42 |
F-Score5
WACC9.28%
ROIC/WACC0.82
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)-1.29%
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-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%
ARHAUS INC / ARHS FAQ
Can you provide the ChartMill fundamental rating for ARHAUS INC?
ChartMill assigns a fundamental rating of 5 / 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 18.92 and the Price/Book (PB) ratio is 3.6.
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.