ARHAUS INC (ARHS) Stock Fundamental Analysis
NASDAQ:ARHS - Nasdaq - US04035M1027 - Common Stock - Currency: USD
Taking everything into account, ARHS scores 5 out of 10 in our fundamental rating. ARHS was compared to 120 industry peers in the Specialty Retail industry. While ARHS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ARHS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ARHS had positive earnings in the past year.
ARHS had a positive operating cash flow in the past year.
In the past 5 years ARHS has always 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 4.61%, ARHS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of ARHS (16.72%) is better than 73.33% of its industry peers.
ARHS has a better Return On Invested Capital (6.60%) than 60.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARHS is above the industry average of 13.01%.
The 3 year average ROIC (16.29%) for ARHS is well above the current ROIC(6.60%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 16.72% | ||
| ROIC | 6.6% |
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 Profit Margin of 4.53%. This is in the better half of the industry: ARHS outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of ARHS has grown nicely.
The Operating Margin of ARHS (5.67%) is better than 70.83% 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 38.98%, ARHS is in line with its industry, outperforming 58.33% of the companies in the same industry.
ARHS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.67% | ||
| PM (TTM) | 4.53% | ||
| GM | 38.98% |
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
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.
Compared to 5 years ago, ARHS has more shares outstanding
ARHS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.31 indicates that ARHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARHS has a Altman-Z score (2.31) which is comparable to the rest of the industry.
The Debt to FCF ratio of ARHS is 1.11, which is an excellent value as it means it would take ARHS, only 1.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARHS (1.11) is better than 78.33% of its industry peers.
ARHS has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
ARHS has a Debt to Equity ratio of 0.15. This is in the better half of the industry: ARHS outperforms 65.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.68
WACC9.77%
2.3 Liquidity
A Current Ratio of 1.26 indicates that ARHS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, ARHS is in line with its industry, outperforming 43.33% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that ARHS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, ARHS is in line with its industry, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
ARHS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.05%.
The Earnings Per Share has been growing by 43.52% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.71% in the past year.
The Revenue has been growing by 20.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-46.05%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%-63.64%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%5.49%
3.2 Future
ARHS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.22% yearly.
ARHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.04% yearly.
EPS Next Y-12.45%
EPS Next 2Y1.46%
EPS Next 3Y7.22%
EPS Next 5YN/A
Revenue Next Year5.1%
Revenue Next 2Y6.4%
Revenue Next 3Y7.04%
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 decreasing.
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
The Price/Earnings ratio is 21.90, which indicates a rather expensive current valuation of ARHS.
65.83% of the companies in the same industry are more expensive than ARHS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.25. ARHS is around the same levels.
With a Price/Forward Earnings ratio of 18.18, ARHS is valued on the expensive side.
ARHS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ARHS to the average of the S&P500 Index (22.15), we can say ARHS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 18.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARHS is valued a bit cheaper than 70.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARHS is valued a bit cheaper than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.51 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
The excellent profitability rating of ARHS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y1.46%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
No dividends for ARHS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.98
+0.23 (+2.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners111.71%
Inst Owner Change2.14%
Ins Owners4.77%
Ins Owner Change7.77%
Market Cap1.27B
Analysts75
Price Target11.57 (28.84%)
Short Float %13.41%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP120.85%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.05%
Min EPS beat(2)-36.28%
Max EPS beat(2)12.17%
EPS beat(4)2
Avg EPS beat(4)-1.88%
Min EPS beat(4)-36.28%
Max EPS beat(4)33.22%
EPS beat(8)6
Avg EPS beat(8)71.61%
EPS beat(12)10
Avg EPS beat(12)73.06%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.07%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)-3%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)-3%
Revenue beat(8)3
Avg Revenue beat(8)-1.24%
Revenue beat(12)6
Avg Revenue beat(12)1.03%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.99%
PT rev (3m)-7.81%
EPS NQ rev (1m)-4.95%
EPS NQ rev (3m)-8.56%
EPS NY rev (1m)-14.76%
EPS NY rev (3m)-20.94%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-2.86%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 18.18 | ||
| P/S | 0.98 | ||
| P/FCF | 26.51 | ||
| P/OCF | 8.07 | ||
| P/B | 3.63 | ||
| P/tB | 3.75 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)0.41
EY4.57%
EPS(NY)0.49
Fwd EY5.5%
FCF(TTM)0.34
FCFY3.77%
OCF(TTM)1.11
OCFY12.39%
SpS9.13
BVpS2.48
TBVpS2.4
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 16.72% | ||
| ROCE | 8.82% | ||
| ROIC | 6.6% | ||
| ROICexc | 8.9% | ||
| ROICexgc | 9.07% | ||
| OM | 5.67% | ||
| PM (TTM) | 4.53% | ||
| GM | 38.98% | ||
| FCFM | 3.71% |
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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 136.17% | ||
| Cap/Sales | 8.47% | ||
| Interest Coverage | 14.34 | ||
| Cash Conversion | 102.44% | ||
| Profit Quality | 81.84% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 2.31 |
F-Score5
WACC9.77%
ROIC/WACC0.68
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)-46.05%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%-63.64%
EPS Next Y-12.45%
EPS Next 2Y1.46%
EPS Next 3Y7.22%
EPS Next 5YN/A
Revenue 1Y (TTM)0.71%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%5.49%
Revenue Next Year5.1%
Revenue Next 2Y6.4%
Revenue Next 3Y7.04%
Revenue Next 5YN/A
EBIT growth 1Y-46.83%
EBIT growth 3Y36.28%
EBIT growth 5Y23.47%
EBIT Next Year61.4%
EBIT Next 3Y28.16%
EBIT Next 5YN/A
FCF growth 1Y1293.43%
FCF growth 3Y-26.06%
FCF growth 5Y27.06%
OCF growth 1Y233.61%
OCF growth 3Y0.21%
OCF growth 5Y46.37%