ARHAUS INC (ARHS) Stock Fundamental Analysis
USA - NASDAQ:ARHS - US04035M1027 - Common Stock
11.03 USD
+0.01 (+0.09%)
11.03 USD
0 (0%)
Overall ARHS gets a fundamental rating of 6 out of 10. We evaluated ARHS against 121 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making ARHS a very profitable company, without any liquidiy or solvency issues. ARHS has a decent growth rate and is not valued too expensively. These ratings could make ARHS a good candidate for quality investing.
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.
In the past 5 years ARHS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.40%, ARHS is doing good in the industry, outperforming 71.90% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.46%, ARHS is in the better half of the industry, outperforming 79.34% of the companies in the same industry.
ARHS's Return On Invested Capital of 7.65% is fine compared to the rest of the industry. ARHS outperforms 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 12.11%.
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
ARHS has a better Profit Margin (5.33%) than 77.69% of its industry peers.
In the last couple of years the Profit Margin of ARHS has grown nicely.
Looking at the Operating Margin, with a value of 6.76%, ARHS is in the better half of the industry, outperforming 75.21% of the companies in the same industry.
ARHS's Operating Margin has improved in the last couple of years.
ARHS's Gross Margin of 39.34% 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 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 2.56 indicates that ARHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ARHS (2.56) is comparable to the rest of the 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's Debt to FCF ratio of 0.93 is amongst the best of the industry. ARHS outperforms 80.17% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that ARHS is not too dependend on debt financing.
ARHS has a Debt to Equity ratio of 0.14. This is in the better half of the industry: ARHS outperforms 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.79
WACC9.64%
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.
Looking at the Current ratio, with a value of 1.33, ARHS is in line with its industry, outperforming 51.24% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that ARHS may have some problems paying its short term obligations.
ARHS has a Quick ratio of 0.61. This is in the better half of the industry: ARHS outperforms 61.16% of its industry peers.
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 | 1.33 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
ARHS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.63%.
ARHS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.52% yearly.
The Revenue has been growing slightly by 4.77% in the past year.
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
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-5.18%
EPS Next 2Y3.37%
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
With a Price/Earnings ratio of 22.06, ARHS is valued on the expensive side.
ARHS's Price/Earnings ratio is a bit cheaper when compared to the industry. ARHS is cheaper than 71.90% of the companies in the same industry.
ARHS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
ARHS is valuated rather expensively with a Price/Forward Earnings ratio of 21.50.
ARHS's Price/Forward Earnings ratio is in line with the industry average.
ARHS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 21.5 |
4.2 Price Multiples
ARHS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARHS is cheaper than 71.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARHS indicates a somewhat cheap valuation: ARHS is cheaper than 69.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.09 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
The excellent profitability rating of ARHS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y3.37%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
No dividends for ARHS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.03
+0.01 (+0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.32%
Inst Owner Change-0.58%
Ins Owners5.31%
Ins Owner Change7.76%
Market Cap1.55B
Analysts75
Price Target12.33 (11.79%)
Short Float %8.88%
Short Ratio2.12
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)22.36%
PT rev (3m)22.36%
EPS NQ rev (1m)5.84%
EPS NQ rev (3m)12.27%
EPS NY rev (1m)8.91%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 21.5 | ||
| P/S | 1.16 | ||
| P/FCF | 27.09 | ||
| P/OCF | 10.78 | ||
| P/B | 4.03 | ||
| P/tB | 4.15 | ||
| EV/EBITDA | 7.88 |
EPS(TTM)0.5
EY4.53%
EPS(NY)0.51
Fwd EY4.65%
FCF(TTM)0.41
FCFY3.69%
OCF(TTM)1.02
OCFY9.28%
SpS9.48
BVpS2.74
TBVpS2.66
PEG (NY)N/A
PEG (5Y)0.51
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%
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-Score5
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.93 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 103.79% | ||
| Cap/Sales | 6.5% | ||
| Interest Coverage | 17.93 | ||
| Cash Conversion | 82.88% | ||
| Profit Quality | 80.66% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.56 |
F-Score5
WACC9.64%
ROIC/WACC0.79
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)-20.63%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%56.25%
EPS Next Y-5.18%
EPS Next 2Y3.37%
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 Year61.11%
EBIT Next 3Y27.47%
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%