ARHAUS INC (ARHS) Fundamental Analysis & Valuation
NASDAQ:ARHS • US04035M1027
Current stock price
6.78 USD
-0.31 (-4.37%)
At close:
6.78 USD
0 (0%)
After Hours:
This ARHS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ARHS Profitability Analysis
1.1 Basic Checks
- In the past year ARHS was profitable.
- ARHS had a positive operating cash flow in the past year.
- Each year in the past 5 years ARHS has been profitable.
- ARHS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.82%, ARHS is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
- With a decent Return On Equity value of 16.08%, ARHS is doing good in the industry, outperforming 76.61% of the companies in the same industry.
- The Return On Invested Capital of ARHS (7.02%) is better than 66.94% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ARHS is below the industry average of 13.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 16.08% | ||
| ROIC | 7.02% |
ROA(3y)7.28%
ROA(5y)8.02%
ROE(3y)24.28%
ROE(5y)33.64%
ROIC(3y)10.31%
ROIC(5y)13.82%
1.3 Margins
- With a decent Profit Margin value of 4.88%, ARHS is doing good in the industry, outperforming 75.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of ARHS has grown nicely.
- ARHS has a better Operating Margin (6.45%) than 75.00% of its industry peers.
- ARHS's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 38.89%, ARHS perfoms like the industry average, outperforming 58.87% of the companies in the same industry.
- In the last couple of years the Gross Margin of ARHS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.45% | ||
| PM (TTM) | 4.88% | ||
| GM | 38.89% |
OM growth 3Y-24.57%
OM growth 5Y0.96%
PM growth 3Y-24.02%
PM growth 5Y15.38%
GM growth 3Y-3.09%
GM growth 5Y-0.22%
2. ARHS Health Analysis
2.1 Basic Checks
- ARHS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for ARHS has been increased compared to 1 year ago.
- ARHS has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ARHS has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.17 indicates that ARHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ARHS has a Altman-Z score (2.17) which is in line with its industry peers.
- ARHS has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
- ARHS's Debt to FCF ratio of 0.90 is amongst the best of the industry. ARHS outperforms 81.45% of its industry peers.
- ARHS has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
- ARHS has a Debt to Equity ratio of 0.13. This is in the better half of the industry: ARHS outperforms 69.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.7
WACC9.99%
2.3 Liquidity
- ARHS has a Current Ratio of 1.37. 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 (1.37) which is in line with its industry peers.
- A Quick Ratio of 0.62 indicates that ARHS may have some problems paying its short term obligations.
- The Quick ratio of ARHS (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.62 |
3. ARHS Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 2.08% over the past year.
- ARHS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.51% yearly.
- Looking at the last year, ARHS shows a quite strong growth in Revenue. The Revenue has grown by 8.51% in the last year.
- Measured over the past years, ARHS shows a very strong growth in Revenue. The Revenue has been growing by 22.14% on average per year.
EPS 1Y (TTM)2.08%
EPS 3Y-21.42%
EPS 5Y39.51%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)8.51%
Revenue growth 3Y3.92%
Revenue growth 5Y22.14%
Sales Q2Q%5.14%
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 11.82% yearly.
- Based on estimates for the next years, ARHS will show a small growth in Revenue. The Revenue will grow by 7.85% on average per year.
EPS Next Y5.73%
EPS Next 2Y10.58%
EPS Next 3Y10.46%
EPS Next 5Y11.82%
Revenue Next Year6.32%
Revenue Next 2Y6.6%
Revenue Next 3Y6.82%
Revenue Next 5Y7.85%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. ARHS Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.84, ARHS is valued correctly.
- Based on the Price/Earnings ratio, ARHS is valued a bit cheaper than 76.61% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.23, ARHS is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 13.09, the valuation of ARHS can be described as correct.
- Based on the Price/Forward Earnings ratio, ARHS is valued a bit cheaper than the industry average as 73.39% of the companies are valued more expensively.
- ARHS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
- ARHS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARHS is cheaper than 81.45% of the companies in the same industry.
- 69.35% 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 | 16.22 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ARHS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.41
PEG (5Y)0.35
EPS Next 2Y10.58%
EPS Next 3Y10.46%
5. ARHS Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 5.16%, ARHS is a good candidate for dividend investing.
- The stock price of ARHS dropped by -41.40% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- ARHS's Dividend Yield is rather good when compared to the industry average which is at 2.42. ARHS pays more dividend than 88.71% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, ARHS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
5.2 History
- ARHS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 0.54% of the earnings are spent on dividend by ARHS. This is a low number and sustainable payout ratio.
DP0.54%
EPS Next 2Y10.58%
EPS Next 3Y10.46%
ARHS Fundamentals: All Metrics, Ratios and Statistics
6.78
-0.31 (-4.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-26 2026-02-26/bmo
Earnings (Next)05-06 2026-05-06
Inst Owners104.82%
Inst Owner Change1.46%
Ins Owners4.06%
Ins Owner Change1.75%
Market Cap956.79M
Revenue(TTM)1.38B
Net Income(TTM)67.26M
Analysts74.29
Price Target11.57 (70.65%)
Short Float %7.82%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-18 2026-03-18 (0.35)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.18%
Min EPS beat(2)11.39%
Max EPS beat(2)14.97%
EPS beat(4)3
Avg EPS beat(4)13.55%
Min EPS beat(4)-36.28%
Max EPS beat(4)64.1%
EPS beat(8)6
Avg EPS beat(8)75.52%
EPS beat(12)10
Avg EPS beat(12)57.35%
EPS beat(16)14
Avg EPS beat(16)62.65%
Revenue beat(2)1
Avg Revenue beat(2)0.82%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.75%
Revenue beat(4)2
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-3%
Max Revenue beat(4)5.32%
Revenue beat(8)3
Avg Revenue beat(8)0.25%
Revenue beat(12)5
Avg Revenue beat(12)-0.44%
Revenue beat(16)9
Avg Revenue beat(16)1.37%
PT rev (1m)-1.34%
PT rev (3m)2.37%
EPS NQ rev (1m)-60.84%
EPS NQ rev (3m)-60.84%
EPS NY rev (1m)1.59%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-4.32%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 13.09 | ||
| P/S | 0.69 | ||
| P/FCF | 16.22 | ||
| P/OCF | 6.99 | ||
| P/B | 2.29 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)0.49
EY7.23%
EPS(NY)0.52
Fwd EY7.64%
FCF(TTM)0.42
FCFY6.16%
OCF(TTM)0.97
OCFY14.3%
SpS9.77
BVpS2.96
TBVpS2.89
PEG (NY)2.41
PEG (5Y)0.35
Graham Number5.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.82% | ||
| ROE | 16.08% | ||
| ROCE | 9.45% | ||
| ROIC | 7.02% | ||
| ROICexc | 9.6% | ||
| ROICexgc | 9.76% | ||
| OM | 6.45% | ||
| PM (TTM) | 4.88% | ||
| GM | 38.89% | ||
| FCFM | 4.28% |
ROA(3y)7.28%
ROA(5y)8.02%
ROE(3y)24.28%
ROE(5y)33.64%
ROIC(3y)10.31%
ROIC(5y)13.82%
ROICexc(3y)14.24%
ROICexc(5y)23.36%
ROICexgc(3y)14.51%
ROICexgc(5y)25.48%
ROCE(3y)13.89%
ROCE(5y)18.61%
ROICexgc growth 3Y-34.13%
ROICexgc growth 5Y-29.25%
ROICexc growth 3Y-33.89%
ROICexc growth 5Y-26.12%
OM growth 3Y-24.57%
OM growth 5Y0.96%
PM growth 3Y-24.02%
PM growth 5Y15.38%
GM growth 3Y-3.09%
GM growth 5Y-0.22%
F-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 166.41% | ||
| Cap/Sales | 5.65% | ||
| Interest Coverage | 17.67 | ||
| Cash Conversion | 100.8% | ||
| Profit Quality | 87.69% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 2.17 |
F-Score5
WACC9.99%
ROIC/WACC0.7
Cap/Depr(3y)252.83%
Cap/Depr(5y)234.11%
Cap/Sales(3y)7.12%
Cap/Sales(5y)6.33%
Profit Quality(3y)68.58%
Profit Quality(5y)137.52%
High Growth Momentum
Growth
EPS 1Y (TTM)2.08%
EPS 3Y-21.42%
EPS 5Y39.51%
EPS Q2Q%-21.43%
EPS Next Y5.73%
EPS Next 2Y10.58%
EPS Next 3Y10.46%
EPS Next 5Y11.82%
Revenue 1Y (TTM)8.51%
Revenue growth 3Y3.92%
Revenue growth 5Y22.14%
Sales Q2Q%5.14%
Revenue Next Year6.32%
Revenue Next 2Y6.6%
Revenue Next 3Y6.82%
Revenue Next 5Y7.85%
EBIT growth 1Y3.69%
EBIT growth 3Y-21.61%
EBIT growth 5Y23.31%
EBIT Next Year84.72%
EBIT Next 3Y32.48%
EBIT Next 5Y24.06%
FCF growth 1Y48.41%
FCF growth 3Y39.34%
FCF growth 5Y-15.56%
OCF growth 1Y-6.98%
OCF growth 3Y22.47%
OCF growth 5Y-1.87%
ARHAUS INC / ARHS Fundamental Analysis 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 5 / 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 6 / 10.
Can you provide the PE and PB ratios for ARHS stock?
The Price/Earnings (PE) ratio for ARHAUS INC (ARHS) is 13.84 and the Price/Book (PB) ratio is 2.29.
What is the earnings growth outlook for ARHAUS INC?
The Earnings per Share (EPS) of ARHAUS INC (ARHS) is expected to grow by 5.73% in the next year.