ARHAUS INC (ARHS)
US04035M1027 - Common Stock
We assign a fundamental rating of 6 out of 10 to ARHS. ARHS was compared to 125 industry peers in the Specialty Retail industry. ARHS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ARHS is not valued too expensively and it also shows a decent growth rate. These ratings would make ARHS suitable for quality investing!
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.
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
ARHS has a Return On Assets of 9.03%. This is amongst the best in the industry. ARHS outperforms 82.54% of its industry peers.
Looking at the Return On Equity, with a value of 37.18%, ARHS belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.03%, ARHS belongs to the best of the industry, outperforming 81.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ARHS is above the industry average of 13.93%.
The last Return On Invested Capital (14.03%) for ARHS is well below the 3 year average (18.12%), which needs to be investigated, but indicates that ARHS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 37.18% | ||
| ROIC | 14.03% |
ROA(3y)9.86%
ROA(5y)7.55%
ROE(3y)44.06%
ROE(5y)N/A
ROIC(3y)18.12%
ROIC(5y)18.51%
1.3 Margins
ARHS has a better Profit Margin (8.31%) than 86.51% of its industry peers.
ARHS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.74%, ARHS belongs to the top of the industry, outperforming 84.92% 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 41.25%, ARHS is in the better half of the industry, outperforming 61.90% 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 | 10.74% | ||
| PM (TTM) | 8.31% | ||
| GM | 41.25% |
OM growth 3Y27.55%
OM growth 5YN/A
PM growth 3Y59.77%
PM growth 5YN/A
GM growth 3Y2.2%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARHS is creating value.
Compared to 1 year 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 3.22. This indicates that ARHS is financially healthy and has little risk of bankruptcy at the moment.
ARHS has a better Altman-Z score (3.22) than 69.84% of its industry peers.
ARHS has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.63, ARHS belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that ARHS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, ARHS is in the better half of the industry, outperforming 62.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 3.22 |
ROIC/WACC1.56
WACC8.98%
2.3 Liquidity
ARHS has a Current Ratio of 1.21. This is a normal value and indicates that ARHS is financially healthy and should not expect problems in meeting its short term obligations.
ARHS's Current ratio of 1.21 is on the low side compared to the rest of the industry. ARHS is outperformed by 63.49% of its industry peers.
A Quick Ratio of 0.61 indicates that ARHS may have some problems paying its short term obligations.
ARHS's Quick ratio of 0.61 is in line compared to the rest of the industry. ARHS outperforms 50.00% of its industry peers.
ARHS does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.21 | ||
| 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 -33.33%.
The Earnings Per Share has been growing by 114.96% on average over the past years. This is a very strong growth
Looking at the last year, ARHS shows a decrease in Revenue. The Revenue has decreased by -0.69% in the last year.
Measured over the past years, ARHS shows a very strong growth in Revenue. The Revenue has been growing by 36.40% on average per year.
EPS 1Y (TTM)-33.33%
EPS 3Y114.96%
EPS 5YN/A
EPS growth Q2Q-56%
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y36.4%
Revenue growth 5YN/A
Revenue growth Q2Q-3.09%
3.2 Future
The Earnings Per Share is expected to grow by 3.47% on average over the next years.
ARHS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.43% yearly.
EPS Next Y-16.04%
EPS Next 2Y0.48%
EPS Next 3Y3.47%
EPS Next 5YN/A
Revenue Next Year6.07%
Revenue Next 2Y7.94%
Revenue Next 3Y8.43%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
ARHS is valuated rather expensively with a Price/Earnings ratio of 21.51.
Compared to the rest of the industry, the Price/Earnings ratio of ARHS indicates a somewhat cheap valuation: ARHS is cheaper than 67.46% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ARHS to the average of the S&P500 Index (28.60), we can say ARHS is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.99, which indicates a rather expensive current valuation of ARHS.
63.49% of the companies in the same industry are more expensive than ARHS, based on the Price/Forward Earnings ratio.
ARHS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 17.99 |
4.2 Price Multiples
ARHS's Enterprise Value to EBITDA is on the same level as the industry average.
ARHS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.4 | ||
| EV/EBITDA | 12.55 |
4.3 Compensation for Growth
The excellent profitability rating of ARHS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.48%
EPS Next 3Y3.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, ARHS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.25, ARHS pays a better dividend. On top of this ARHS pays more dividend than 89.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, ARHS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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
5.3 Sustainability
DP0%
EPS Next 2Y0.48%
EPS Next 3Y3.47%
ARHAUS INC
NASDAQ:ARHS (5/17/2024, 7:00:01 PM)
After market: 16.35 0 (0%)16.35
-0.07 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.51 | ||
| Fwd PE | 17.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.03% | ||
| ROE | 37.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.74% | ||
| PM (TTM) | 8.31% | ||
| GM | 41.25% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-33.33%
EPS 3Y114.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y-16.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.69%
Revenue growth 3Y36.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y