ARHAUS INC (ARHS) Stock Fundamental Analysis
NASDAQ:ARHS - US04035M1027 - Common Stock
12.41 USD
+0.54 (+4.55%)
12.41 USD
0 (0%)
Overall ARHS gets a fundamental rating of 6 out of 10. We evaluated ARHS against 124 industry peers in the Specialty Retail industry. ARHS scores excellent on profitability, but there are some minor concerns on its financial health. ARHS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ARHS was profitable.
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
Looking at the Return On Assets, with a value of 5.40%, ARHS is in the better half of the industry, outperforming 69.35% of the companies in the same industry.
The Return On Equity of ARHS (18.46%) is better than 78.23% of its industry peers.
ARHS has a better Return On Invested Capital (7.65%) than 67.74% of its industry peers.
ARHS had an Average Return On Invested Capital over the past 3 years of 16.29%. This is above the industry average of 11.78%.
The 3 year average ROIC (16.29%) for ARHS is well above the current ROIC(7.65%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 18.46% | ||
| ROIC | 7.65% |
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's Profit Margin of 5.33% is fine compared to the rest of the industry. ARHS outperforms 78.23% of its industry peers.
ARHS's Profit Margin has improved in the last couple of years.
ARHS has a Operating Margin of 6.76%. This is in the better half of the industry: ARHS outperforms 75.00% of its industry peers.
ARHS's Operating Margin has improved in the last couple of years.
ARHS's Gross Margin of 39.34% is fine compared to the rest of the industry. ARHS outperforms 61.29% of its industry peers.
In the last couple of years the Gross Margin of ARHS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.76% | ||
| PM (TTM) | 5.33% | ||
| GM | 39.34% |
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.
Compared to 1 year ago, ARHS has more shares outstanding
Compared to 5 years ago, ARHS has more shares outstanding
The debt/assets ratio for ARHS has been reduced compared to a year ago.
2.2 Solvency
ARHS has an Altman-Z score of 2.64. This is not the best score and indicates that ARHS is in the grey zone with still only limited risk for bankruptcy at the moment.
ARHS has a Altman-Z score (2.64) which is in line with its industry peers.
The Debt to FCF ratio of ARHS is 0.93, which is an excellent value as it means it would take ARHS, only 0.93 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.93, ARHS belongs to the best of the industry, outperforming 81.45% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that ARHS is not too dependend on debt financing.
The Debt to Equity ratio of ARHS (0.14) is better than 68.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.81
WACC9.4%
2.3 Liquidity
ARHS has a Current Ratio of 1.33. 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 (1.33) which is comparable to the rest of the industry.
A Quick Ratio of 0.61 indicates that ARHS may have some problems paying its short term obligations.
The Quick ratio of ARHS (0.61) is comparable to the rest of the industry.
The current and quick ratio evaluation for ARHS is rather negative, while it does have 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 | 1.33 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for ARHS have decreased strongly by -20.63% in the last year.
ARHS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.52% yearly.
Looking at the last year, ARHS shows a small growth in Revenue. The Revenue has grown by 4.77% in the last year.
ARHS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.78% yearly.
EPS 1Y (TTM)-20.63%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%56.25%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%15.7%
3.2 Future
Based on estimates for the next years, ARHS will show a small growth in Earnings Per Share. The EPS will grow by 6.67% on average per year.
ARHS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.58% yearly.
EPS Next Y-12.94%
EPS Next 2Y1.27%
EPS Next 3Y6.39%
EPS Next 5Y6.67%
Revenue Next Year5.1%
Revenue Next 2Y6.36%
Revenue Next 3Y6.97%
Revenue Next 5Y7.58%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.82, the valuation of ARHS can be described as rather expensive.
ARHS's Price/Earnings ratio is a bit cheaper when compared to the industry. ARHS is cheaper than 67.74% of the companies in the same industry.
ARHS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 25.21, the valuation of ARHS can be described as expensive.
ARHS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ARHS to the average of the S&P500 Index (35.82), we can say ARHS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 25.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARHS is valued a bit cheaper than 65.32% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ARHS indicates a somewhat cheap valuation: ARHS is cheaper than 62.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.47 | ||
| EV/EBITDA | 8.57 |
4.3 Compensation for Growth
ARHS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y1.27%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
No dividends for ARHS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.41
+0.54 (+4.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.32%
Inst Owner Change-0.58%
Ins Owners5.31%
Ins Owner Change8.04%
Market Cap1.75B
Analysts75
Price Target10.07 (-18.86%)
Short Float %12.06%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP0.67%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.91%
Min EPS beat(2)-36.28%
Max EPS beat(2)64.1%
EPS beat(4)2
Avg EPS beat(4)5.84%
Min EPS beat(4)-36.28%
Max EPS beat(4)64.1%
EPS beat(8)6
Avg EPS beat(8)78.22%
EPS beat(12)10
Avg EPS beat(12)67.47%
EPS beat(16)14
Avg EPS beat(16)74.98%
Revenue beat(2)1
Avg Revenue beat(2)1.16%
Min Revenue beat(2)-3%
Max Revenue beat(2)5.32%
Revenue beat(4)1
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)5.32%
Revenue beat(8)4
Avg Revenue beat(8)0.22%
Revenue beat(12)6
Avg Revenue beat(12)0.02%
Revenue beat(16)9
Avg Revenue beat(16)1.87%
PT rev (1m)0%
PT rev (3m)-12.97%
EPS NQ rev (1m)6.08%
EPS NQ rev (3m)-18.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)1.2%
Revenue NQ rev (3m)-3.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 25.21 | ||
| P/S | 1.31 | ||
| P/FCF | 30.47 | ||
| P/OCF | 12.13 | ||
| P/B | 4.54 | ||
| P/tB | 4.67 | ||
| EV/EBITDA | 8.57 |
EPS(TTM)0.5
EY4.03%
EPS(NY)0.49
Fwd EY3.97%
FCF(TTM)0.41
FCFY3.28%
OCF(TTM)1.02
OCFY8.25%
SpS9.48
BVpS2.74
TBVpS2.66
PEG (NY)N/A
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 18.46% | ||
| ROCE | 10.23% | ||
| ROIC | 7.65% | ||
| ROICexc | 10.42% | ||
| ROICexgc | 10.6% | ||
| OM | 6.76% | ||
| PM (TTM) | 5.33% | ||
| GM | 39.34% | ||
| FCFM | 4.3% |
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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.93 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 103.79% | ||
| Cap/Sales | 6.5% | ||
| Interest Coverage | 17.93 | ||
| Cash Conversion | 82.88% | ||
| Profit Quality | 80.66% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.64 |
F-Score5
WACC9.4%
ROIC/WACC0.81
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)-20.63%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%56.25%
EPS Next Y-12.94%
EPS Next 2Y1.27%
EPS Next 3Y6.39%
EPS Next 5Y6.67%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%15.7%
Revenue Next Year5.1%
Revenue Next 2Y6.36%
Revenue Next 3Y6.97%
Revenue Next 5Y7.58%
EBIT growth 1Y-19.78%
EBIT growth 3Y36.28%
EBIT growth 5Y23.47%
EBIT Next Year61.11%
EBIT Next 3Y27.47%
EBIT Next 5Y21.19%
FCF growth 1Y90.69%
FCF growth 3Y-26.06%
FCF growth 5Y27.06%
OCF growth 1Y51.51%
OCF growth 3Y0.21%
OCF growth 5Y46.37%