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ARHAUS INC (ARHS) Stock Fundamental Analysis

NASDAQ:ARHS - Nasdaq - US04035M1027 - Common Stock - Currency: USD

9.33  +0.36 (+4.01%)

After market: 9.0082 -0.32 (-3.45%)

Fundamental Rating

6

Overall ARHS gets a fundamental rating of 6 out of 10. We evaluated ARHS against 121 industry peers in the Specialty Retail industry. ARHS scores excellent on profitability, but there are some minor concerns on its financial health. ARHS has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

ARHS had positive earnings in the past year.
In the past year ARHS had a positive cash flow from operations.
ARHS had positive earnings in each of the past 5 years.
ARHS had a positive operating cash flow in each of the past 5 years.
ARHS Yearly Net Income VS EBIT VS OCF VS FCFARHS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 50M 100M 150M

1.2 Ratios

ARHS has a better Return On Assets (5.68%) than 72.73% of its industry peers.
ARHS's Return On Equity of 19.94% is fine compared to the rest of the industry. ARHS outperforms 77.69% of its industry peers.
The Return On Invested Capital of ARHS (7.99%) is better than 67.77% of its industry peers.
ARHS had an Average Return On Invested Capital over the past 3 years of 16.29%. This is in line with the industry average of 14.32%.
The last Return On Invested Capital (7.99%) 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 RankSector Rank
ROA 5.68%
ROE 19.94%
ROIC 7.99%
ROA(3y)10.56%
ROA(5y)7.82%
ROE(3y)40.63%
ROE(5y)N/A
ROIC(3y)16.29%
ROIC(5y)17.01%
ARHS Yearly ROA, ROE, ROICARHS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 100 200 300

1.3 Margins

ARHS has a better Profit Margin (5.39%) than 79.34% of its industry peers.
ARHS's Profit Margin has improved in the last couple of years.
ARHS has a better Operating Margin (6.75%) than 74.38% of its industry peers.
ARHS's Operating Margin has improved in the last couple of years.
ARHS's Gross Margin of 39.43% is fine compared to the rest of the industry. ARHS outperforms 61.16% of its industry peers.
ARHS's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 6.75%
PM (TTM) 5.39%
GM 39.43%
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%
ARHS Yearly Profit, Operating, Gross MarginsARHS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 10 20 30 40

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5

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.
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.
ARHS Yearly Shares OutstandingARHS Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 50M 100M
ARHS Yearly Total Debt VS Total AssetsARHS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 2.46 indicates that ARHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARHS has a Altman-Z score (2.46) which is in line with its industry peers.
ARHS has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
ARHS's Debt to FCF ratio of 1.37 is fine compared to the rest of the industry. ARHS outperforms 76.86% of its industry peers.
ARHS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
ARHS has a Debt to Equity ratio of 0.16. This is in the better half of the industry: ARHS outperforms 65.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 1.37
Altman-Z 2.46
ROIC/WACC0.81
WACC9.84%
ARHS Yearly LT Debt VS Equity VS FCFARHS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 1.32 indicates that ARHS should not have too much problems paying its short term obligations.
ARHS's Current ratio of 1.32 is in line compared to the rest of the industry. ARHS outperforms 46.28% of its industry peers.
A Quick Ratio of 0.58 indicates that ARHS may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.58, ARHS is doing good in the industry, outperforming 61.98% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 0.58
ARHS Yearly Current Assets VS Current LiabilitesARHS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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5

3. Growth

3.1 Past

ARHS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.67%.
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 decrease in Revenue. In the last year, the revenue decreased by -1.29%.
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)-46.67%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%-36.36%
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%0.87%

3.2 Future

ARHS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.63% yearly.
The Revenue is expected to grow by 8.24% on average over the next years. This is quite good.
EPS Next Y10.74%
EPS Next 2Y17.79%
EPS Next 3Y9.63%
EPS Next 5YN/A
Revenue Next Year8.19%
Revenue Next 2Y8.23%
Revenue Next 3Y8.24%
Revenue Next 5YN/A

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.
ARHS Yearly Revenue VS EstimatesARHS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
ARHS Yearly EPS VS EstimatesARHS Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 19.44, which indicates a rather expensive current valuation of ARHS.
ARHS's Price/Earnings ratio is a bit cheaper when compared to the industry. ARHS is cheaper than 70.25% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ARHS is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.55, which indicates a rather expensive current valuation of ARHS.
Based on the Price/Forward Earnings ratio, ARHS is valued a bit cheaper than the industry average as 66.12% of the companies are valued more expensively.
ARHS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.44
Fwd PE 17.55
ARHS Price Earnings VS Forward Price EarningsARHS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

71.90% of the companies in the same industry are more expensive than ARHS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ARHS is valued a bit cheaper than 62.81% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.99
EV/EBITDA 6.9
ARHS Per share dataARHS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARHS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ARHS may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)0.45
EPS Next 2Y17.79%
EPS Next 3Y9.63%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.36%, ARHS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.91, ARHS pays a better dividend. On top of this ARHS pays more dividend than 91.74% of the companies listed in the same industry.
ARHS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 5.36%

5.2 History

ARHS does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
ARHS Yearly Dividends per shareARHS Yearly Dividends per shareYearly Dividends per share 2024 0.1 0.2 0.3 0.4

5.3 Sustainability

102.49% of the earnings are spent on dividend by ARHS. This is not a sustainable payout ratio.
DP102.49%
EPS Next 2Y17.79%
EPS Next 3Y9.63%
ARHS Yearly Income VS Free CF VS DividendARHS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ARHS Dividend Payout.ARHS Dividend Payout, showing the Payout Ratio.ARHS Dividend Payout.PayoutRetained Earnings

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ARHAUS INC

NASDAQ:ARHS (3/7/2025, 8:05:30 PM)

After market: 9.0082 -0.32 (-3.45%)

9.33

+0.36 (+4.01%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-26 2025-02-26/bmo
Earnings (Next)05-07 2025-05-07/bmo
Inst Owners111.71%
Inst Owner Change-19.11%
Ins Owners4.77%
Ins Owner Change4.88%
Market Cap1.31B
Analysts77
Price Target12.28 (31.62%)
Short Float %13.51%
Short Ratio3.7
Dividend
Industry RankSector Rank
Dividend Yield 5.36%
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP102.49%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.23%
Min EPS beat(2)-16.62%
Max EPS beat(2)12.17%
EPS beat(4)3
Avg EPS beat(4)137.5%
Min EPS beat(4)-16.62%
Max EPS beat(4)521.22%
EPS beat(8)7
Avg EPS beat(8)79.25%
EPS beat(12)11
Avg EPS beat(12)79.02%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.06%
Min Revenue beat(2)-4.97%
Max Revenue beat(2)-3.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)9.49%
Revenue beat(8)3
Avg Revenue beat(8)-1.15%
Revenue beat(12)7
Avg Revenue beat(12)1.5%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.63%
PT rev (3m)7.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)55.95%
EPS NY rev (1m)0%
EPS NY rev (3m)10.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.47%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)2.45%
Valuation
Industry RankSector Rank
PE 19.44
Fwd PE 17.55
P/S 1.03
P/FCF 32.99
P/OCF 8.91
P/B 3.81
P/tB 3.94
EV/EBITDA 6.9
EPS(TTM)0.48
EY5.14%
EPS(NY)0.53
Fwd EY5.7%
FCF(TTM)0.28
FCFY3.03%
OCF(TTM)1.05
OCFY11.22%
SpS9.05
BVpS2.45
TBVpS2.37
PEG (NY)1.81
PEG (5Y)0.45
Profitability
Industry RankSector Rank
ROA 5.68%
ROE 19.94%
ROCE 10.67%
ROIC 7.99%
ROICexc 10.59%
ROICexgc 10.78%
OM 6.75%
PM (TTM) 5.39%
GM 39.43%
FCFM 3.13%
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-Score4
Asset Turnover1.05
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 1.37
Debt/EBITDA 0.33
Cap/Depr 141.23%
Cap/Sales 8.45%
Interest Coverage 18.37
Cash Conversion 90.91%
Profit Quality 57.97%
Current Ratio 1.32
Quick Ratio 0.58
Altman-Z 2.46
F-Score4
WACC9.84%
ROIC/WACC0.81
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)-46.67%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%-36.36%
EPS Next Y10.74%
EPS Next 2Y17.79%
EPS Next 3Y9.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%0.87%
Revenue Next Year8.19%
Revenue Next 2Y8.23%
Revenue Next 3Y8.24%
Revenue Next 5YN/A
EBIT growth 1Y-47.8%
EBIT growth 3Y36.28%
EBIT growth 5Y23.47%
EBIT Next Year88.02%
EBIT Next 3Y33.01%
EBIT Next 5YN/A
FCF growth 1Y-47.19%
FCF growth 3Y-26.06%
FCF growth 5Y27.06%
OCF growth 1Y-12.79%
OCF growth 3Y0.21%
OCF growth 5Y46.37%