ARHAUS INC (ARHS)
US04035M1027 - Common Stock
We assign a fundamental rating of 6 out of 10 to ARHS. ARHS was compared to 126 industry peers in the Specialty Retail industry. ARHS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ARHS has a correct valuation and a medium growth rate. This makes ARHS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ARHS was profitable.
ARHS had a positive operating cash flow in the past year.
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.
1.2 Ratios
The Return On Assets of ARHS (11.24%) is better than 86.51% of its industry peers.
ARHS has a Return On Equity of 36.80%. This is amongst the best in the industry. ARHS outperforms 87.30% of its industry peers.
ARHS has a Return On Invested Capital of 16.07%. This is amongst the best in the industry. ARHS outperforms 84.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARHS is above the industry average of 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 36.8% | ||
| ROIC | 16.07% |
ROA(3y)9.83%
ROA(5y)7.53%
ROE(3y)44.06%
ROE(5y)N/A
ROIC(3y)18.12%
ROIC(5y)18.51%
1.3 Margins
The Profit Margin of ARHS (9.72%) is better than 91.27% of its industry peers.
In the last couple of years the Profit Margin of ARHS has grown nicely.
ARHS has a Operating Margin of 12.77%. This is amongst the best in the industry. ARHS outperforms 88.89% of its industry peers.
In the last couple of years the Operating Margin of ARHS has grown nicely.
Looking at the Gross Margin, with a value of 41.97%, ARHS is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
ARHS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.77% | ||
| PM (TTM) | 9.72% | ||
| GM | 41.97% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARHS is creating value.
ARHS has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, ARHS has an improved debt to assets ratio.
2.2 Solvency
ARHS has an Altman-Z score of 3.50. This indicates that ARHS is financially healthy and has little risk of bankruptcy at the moment.
ARHS has a Altman-Z score of 3.50. This is in the better half of the industry: ARHS outperforms 70.63% of its industry peers.
ARHS has a debt to FCF ratio of 0.73. This is a very positive value and a sign of high solvency as it would only need 0.73 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.73, ARHS belongs to the best of the industry, outperforming 81.75% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that ARHS is not too dependend on debt financing.
The Debt to Equity ratio of ARHS (0.16) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.77
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.50 indicates that ARHS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.50, ARHS is in line with its industry, outperforming 50.79% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that ARHS may have some problems paying its short term obligations.
ARHS's Quick ratio of 0.78 is in line compared to the rest of the industry. ARHS outperforms 58.73% 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 | 1.5 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
ARHS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.89%.
The Earnings Per Share has been growing by 114.96% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 4.79% in the past 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)-10.89%
EPS 3Y114.96%
EPS 5YN/A
EPS growth Q2Q-35.29%
Revenue 1Y (TTM)4.79%
Revenue growth 3Y36.4%
Revenue growth 5YN/A
Revenue growth Q2Q-3.45%
3.2 Future
ARHS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.47% yearly.
The Revenue is expected to grow by 8.43% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 15.12, the valuation of ARHS can be described as correct.
76.19% of the companies in the same industry are more expensive than ARHS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ARHS to the average of the S&P500 Index (28.02), we can say ARHS is valued slightly cheaper.
ARHS is valuated rather expensively with a Price/Forward Earnings ratio of 18.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARHS indicates a somewhat cheap valuation: ARHS is cheaper than 63.49% of the companies listed in the same industry.
ARHS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARHS is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
ARHS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.39 | ||
| EV/EBITDA | 8.99 |
4.3 Compensation for Growth
ARHS has an outstanding profitability rating, which 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
ARHS has a Yearly Dividend Yield of 3.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.55, ARHS pays a better dividend. On top of this ARHS pays more dividend than 91.27% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ARHS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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 (5/6/2024, 7:00:00 PM)
After market: 13.42 -0.19 (-1.4%)13.61
+0.45 (+3.42%)
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 Cap1.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 18.01 | ||
| 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 | 11.24% | ||
| ROE | 36.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.77% | ||
| PM (TTM) | 9.72% | ||
| GM | 41.97% | ||
| 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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.78 | ||
| 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)-10.89%
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)4.79%
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
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OCF growth 3Y
OCF growth 5Y