RCI HOSPITALITY HOLDINGS INC (RICK) Stock Fundamental Analysis
NASDAQ:RICK - Nasdaq - US74934Q1085 - Common Stock - Currency: USD
RICK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. RICK has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on RICK.
1. Profitability
1.1 Basic Checks
RICK had positive earnings in the past year.
In the past year RICK had a positive cash flow from operations.
Of the past 5 years RICK 4 years were profitable.
RICK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.82%, RICK is not doing good in the industry: 61.07% of the companies in the same industry are doing better.
RICK's Return On Equity of 1.79% is in line compared to the rest of the industry. RICK outperforms 51.91% of its industry peers.
RICK has a better Return On Invested Capital (8.08%) than 64.12% of its industry peers.
RICK had an Average Return On Invested Capital over the past 3 years of 9.91%. This is in line with the industry average of 10.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 1.79% | ||
| ROIC | 8.08% |
ROA(3y)4.66%
ROA(5y)4.12%
ROE(3y)10.2%
ROE(5y)8.69%
ROIC(3y)9.91%
ROIC(5y)9.06%
1.3 Margins
RICK has a Profit Margin (1.64%) which is in line with its industry peers.
In the last couple of years the Profit Margin of RICK has declined.
RICK has a Operating Margin of 18.38%. This is in the better half of the industry: RICK outperforms 73.28% of its industry peers.
In the last couple of years the Operating Margin of RICK has declined.
With a decent Gross Margin value of 57.87%, RICK is doing good in the industry, outperforming 67.94% of the companies in the same industry.
RICK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.38% | ||
| PM (TTM) | 1.64% | ||
| GM | 57.87% |
OM growth 3Y-10.94%
OM growth 5Y-1.88%
PM growth 3Y-59.66%
PM growth 5Y-38.1%
GM growth 3Y-0.58%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RICK is creating some value.
RICK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RICK has been reduced compared to 5 years ago.
The debt/assets ratio for RICK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.18 indicates that RICK is not a great score, but indicates only limited risk for bankruptcy at the moment.
RICK's Altman-Z score of 2.18 is fine compared to the rest of the industry. RICK outperforms 61.83% of its industry peers.
The Debt to FCF ratio of RICK is 7.75, which is on the high side as it means it would take RICK, 7.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RICK (7.75) is better than 65.65% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that RICK is somewhat dependend on debt financing.
The Debt to Equity ratio of RICK (0.81) is better than 64.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.75 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.85
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.02 indicates that RICK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, RICK perfoms like the industry average, outperforming 57.25% of the companies in the same industry.
A Quick Ratio of 0.92 indicates that RICK may have some problems paying its short term obligations.
With a Quick ratio value of 0.92, RICK perfoms like the industry average, outperforming 55.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for RICK have decreased strongly by -39.52% in the last year.
RICK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.22% yearly.
Looking at the last year, RICK shows a decrease in Revenue. The Revenue has decreased by -1.53% in the last year.
The Revenue has been growing by 10.30% on average over the past years. This is quite good.
EPS 1Y (TTM)-39.52%
EPS 3Y-11.38%
EPS 5Y4.22%
EPS Q2Q%-8.05%
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y14.82%
Revenue growth 5Y10.3%
Sales Q2Q%-3.28%
3.2 Future
RICK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.02% yearly.
RICK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.68% yearly.
EPS Next Y63.42%
EPS Next 2Y51.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.55%
Revenue Next 2Y5.68%
Revenue Next 3YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.80, the valuation of RICK can be described as rather expensive.
73.28% of the companies in the same industry are more expensive than RICK, based on the Price/Earnings ratio.
RICK is valuated rather cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.04, the valuation of RICK can be described as very reasonable.
RICK's Price/Forward Earnings ratio is rather cheap when compared to the industry. RICK is cheaper than 96.18% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. RICK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 8.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RICK indicates a somewhat cheap valuation: RICK is cheaper than 72.52% of the companies listed in the same industry.
84.73% of the companies in the same industry are more expensive than RICK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.2 | ||
| EV/EBITDA | 9.61 |
4.3 Compensation for Growth
RICK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as RICK's earnings are expected to grow with 51.02% in the coming years.
PEG (NY)0.3
PEG (5Y)4.46
EPS Next 2Y51.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RICK has a yearly dividend return of 0.52%, which is pretty low.
RICK's Dividend Yield is a higher than the industry average which is at 3.13.
Compared to an average S&P500 Dividend Yield of 2.27, RICK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
The dividend of RICK is nicely growing with an annual growth rate of 14.14%!
RICK has been paying a dividend for over 5 years, so it has already some track record.
As RICK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)14.14%
Div Incr Years5
Div Non Decr Years7
5.3 Sustainability
49.14% of the earnings are spent on dividend by RICK. This is a bit on the high side, but may be sustainable.
RICK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.14%
EPS Next 2Y51.02%
EPS Next 3YN/A
52.07
-1.5 (-2.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners51.59%
Inst Owner Change-99.43%
Ins Owners8.33%
Ins Owner Change0.25%
Market Cap461.86M
Analysts82.86
Price Target99.96 (91.97%)
Short Float %6.15%
Short Ratio5.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.25
Dividend Growth(5Y)14.14%
DP49.14%
Div Incr Years5
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)191.37%
Min EPS beat(2)50.83%
Max EPS beat(2)331.9%
EPS beat(4)2
Avg EPS beat(4)50.79%
Min EPS beat(4)-166.95%
Max EPS beat(4)331.9%
EPS beat(8)3
Avg EPS beat(8)23.46%
EPS beat(12)5
Avg EPS beat(12)16.97%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.11%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-1.77%
Revenue beat(12)1
Avg Revenue beat(12)-1.76%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-51.68%
EPS NQ rev (3m)-51.68%
EPS NY rev (1m)8.85%
EPS NY rev (3m)8.85%
Revenue NQ rev (1m)-15.9%
Revenue NQ rev (3m)-15.9%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-4.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 8.04 | ||
| P/S | 1.58 | ||
| P/FCF | 15.2 | ||
| P/OCF | 8.31 | ||
| P/B | 1.72 | ||
| P/tB | 10.45 | ||
| EV/EBITDA | 9.61 |
EPS(TTM)2.77
EY5.32%
EPS(NY)6.48
Fwd EY12.44%
FCF(TTM)3.42
FCFY6.58%
OCF(TTM)6.27
OCFY12.04%
SpS33.05
BVpS30.32
TBVpS4.98
PEG (NY)0.3
PEG (5Y)4.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 1.79% | ||
| ROCE | 9.98% | ||
| ROIC | 8.08% | ||
| ROICexc | 8.63% | ||
| ROICexgc | 15.56% | ||
| OM | 18.38% | ||
| PM (TTM) | 1.64% | ||
| GM | 57.87% | ||
| FCFM | 10.36% |
ROA(3y)4.66%
ROA(5y)4.12%
ROE(3y)10.2%
ROE(5y)8.69%
ROIC(3y)9.91%
ROIC(5y)9.06%
ROICexc(3y)10.52%
ROICexc(5y)9.75%
ROICexgc(3y)19.33%
ROICexgc(5y)16.95%
ROCE(3y)12.24%
ROCE(5y)11.19%
ROICexcg growth 3Y-8.64%
ROICexcg growth 5Y-1.17%
ROICexc growth 3Y-13.42%
ROICexc growth 5Y-2.02%
OM growth 3Y-10.94%
OM growth 5Y-1.88%
PM growth 3Y-59.66%
PM growth 5Y-38.1%
GM growth 3Y-0.58%
GM growth 5Y-0.36%
F-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.75 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 166.89% | ||
| Cap/Sales | 8.6% | ||
| Interest Coverage | 3.32 | ||
| Cash Conversion | 80.59% | ||
| Profit Quality | 631.65% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 2.18 |
F-Score6
WACC9.49%
ROIC/WACC0.85
Cap/Depr(3y)206.68%
Cap/Depr(5y)169.79%
Cap/Sales(3y)10.35%
Cap/Sales(5y)8.46%
Profit Quality(3y)397.05%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-39.52%
EPS 3Y-11.38%
EPS 5Y4.22%
EPS Q2Q%-8.05%
EPS Next Y63.42%
EPS Next 2Y51.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.53%
Revenue growth 3Y14.82%
Revenue growth 5Y10.3%
Sales Q2Q%-3.28%
Revenue Next Year2.55%
Revenue Next 2Y5.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.86%
EBIT growth 3Y2.25%
EBIT growth 5Y8.22%
EBIT Next Year236.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-16.66%
FCF growth 3Y3.18%
FCF growth 5Y13.7%
OCF growth 1Y-11.96%
OCF growth 3Y10%
OCF growth 5Y8.5%