10.3 USD
-0.06 (-0.58%)
10.3 USD
0 (0%)
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. 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.
- 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 70.49% 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.
- Looking at the Return On Invested Capital, with a value of 7.88%, ARHS is in the better half of the industry, outperforming 67.21% 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 12.24%.
- The 3 year average ROIC (16.29%) for ARHS is well above the current ROIC(7.88%). The reason for the recent decline needs to be investigated.
| 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
- ARHS's Profit Margin of 5.40% is fine compared to the rest of the industry. ARHS outperforms 77.87% of its industry peers.
- ARHS's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 7.06%, ARHS is doing good in the industry, outperforming 75.41% of the companies in the same industry.
- ARHS's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 39.37%, ARHS is in line with its industry, outperforming 59.02% of the companies in the same industry.
- 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
- 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.
- Compared to 5 years ago, ARHS has more shares outstanding
- ARHS has a better debt/assets ratio than last year.
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.
- ARHS has a Altman-Z score (2.45) which is comparable to the rest of the industry.
- The Debt to FCF ratio of ARHS is 0.66, which is an excellent value as it means it would take ARHS, only 0.66 years of fcf income to pay off all of its debts.
- ARHS's Debt to FCF ratio of 0.66 is amongst the best of the industry. ARHS outperforms 81.97% 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 68.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.81
WACC9.73%
2.3 Liquidity
- A Current Ratio of 1.34 indicates that ARHS should not have too much problems paying its short term obligations.
- ARHS has a Current ratio (1.34) which is comparable to the rest of the industry.
- A Quick Ratio of 0.64 indicates that ARHS may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.64, ARHS is in line with its industry, outperforming 59.02% of the companies in the same 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%.
- The Earnings Per Share has been growing by 43.52% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 7.36% in the past year.
- The Revenue has been growing by 20.78% on average over the past years. This is a very strong growth!
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
- Based on estimates for the next years, ARHS will show a small growth in Earnings Per Share. The EPS will grow by 7.32% on average per year.
- ARHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.64% yearly.
EPS Next Y-2.04%
EPS Next 2Y3.08%
EPS Next 3Y7.06%
EPS Next 5Y7.32%
Revenue Next Year7.57%
Revenue Next 2Y7.01%
Revenue Next 3Y7.26%
Revenue Next 5Y7.64%
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
- Based on the Price/Earnings ratio of 19.81, the valuation of ARHS can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of ARHS indicates a somewhat cheap valuation: ARHS is cheaper than 75.41% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. ARHS is valued slightly cheaper when compared to this.
- ARHS is valuated rather expensively with a Price/Forward Earnings ratio of 20.20.
- 63.93% of the companies in the same industry are more expensive than ARHS, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ARHS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 20.2 |
4.2 Price Multiples
- ARHS's Enterprise Value to EBITDA is on the same level as the industry average.
- 72.95% 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 | 17.98 | ||
| EV/EBITDA | 10.93 |
4.3 Compensation for Growth
- The excellent profitability rating of ARHS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y3.08%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
- ARHS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ARHAUS INC / ARHS FAQ
Can you provide the ChartMill fundamental rating for ARHAUS INC?
ChartMill assigns a fundamental rating of 6 / 10 to ARHS.
What is the valuation status of ARHAUS INC (ARHS) stock?
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 19.81 and the Price/Book (PB) ratio is 3.63.
What is the earnings growth outlook for ARHAUS INC?
The Earnings per Share (EPS) of ARHAUS INC (ARHS) is expected to decline by -2.04% in the next year.