ARHAUS INC (ARHS) Stock Fundamental Analysis
NASDAQ:ARHS - Nasdaq - US04035M1027 - Common Stock - Currency: USD
Taking everything into account, ARHS scores 6 out of 10 in our fundamental rating. ARHS was compared to 121 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 correct valuation and a medium 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.
Each year in the past 5 years ARHS has been profitable.
ARHS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.61%, ARHS is doing good in the industry, outperforming 66.94% of the companies in the same industry.
With a decent Return On Equity value of 16.72%, ARHS is doing good in the industry, outperforming 74.38% of the companies in the same industry.
ARHS has a Return On Invested Capital of 6.60%. This is in the better half of the industry: ARHS outperforms 63.64% 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 13.07%.
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 better Profit Margin (4.53%) than 75.21% of its industry peers.
ARHS's Profit Margin has improved in the last couple of years.
ARHS has a better Operating Margin (5.67%) than 72.73% of its industry peers.
ARHS's Operating Margin has improved in the last couple of years.
ARHS has a Gross Margin (38.98%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARHS is creating some value.
ARHS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ARHS has been increased compared to 5 years ago.
The debt/assets ratio for ARHS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.35 indicates that ARHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARHS's Altman-Z score of 2.35 is in line compared to the rest of the industry. ARHS outperforms 52.89% of its industry peers.
ARHS has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
ARHS's Debt to FCF ratio of 1.11 is amongst the best of the industry. ARHS outperforms 80.99% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that ARHS is not too dependend on debt financing.
ARHS's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. ARHS outperforms 68.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.7
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.26 indicates that ARHS should not have too much problems paying its short term obligations.
ARHS's Current ratio of 1.26 is in line compared to the rest of the industry. ARHS outperforms 45.45% of its industry peers.
A Quick Ratio of 0.57 indicates that ARHS may have some problems paying its short term obligations.
ARHS's Quick ratio of 0.57 is in line compared to the rest of the industry. ARHS outperforms 57.85% of its industry peers.
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 | 1.26 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for ARHS have decreased strongly by -46.05% in the last year.
The Earnings Per Share has been growing by 43.52% on average over the past years. This is a very strong growth
ARHS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.71%.
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
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 7.21% 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 5Y7.21%
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
With a Price/Earnings ratio of 22.90, ARHS is valued on the expensive side.
66.12% 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 27.45. ARHS is around the same levels.
The Price/Forward Earnings ratio is 19.07, which indicates a rather expensive current valuation of ARHS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARHS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.90. ARHS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 19.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARHS indicates a somewhat cheap valuation: ARHS is cheaper than 70.25% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ARHS is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.72 | ||
| EV/EBITDA | 7.59 |
4.3 Compensation for Growth
ARHS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
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 |
9.39
-0.16 (-1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.33%
Inst Owner Change2.12%
Ins Owners5.31%
Ins Owner Change7.77%
Market Cap1.32B
Analysts75
Price Target10.07 (7.24%)
Short Float %10.41%
Short Ratio3.46
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)-12.97%
PT rev (3m)-17.97%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)-0.56%
EPS NY rev (3m)-13.68%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 19.07 | ||
| P/S | 1.03 | ||
| P/FCF | 27.72 | ||
| P/OCF | 8.44 | ||
| P/B | 3.79 | ||
| P/tB | 3.92 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)0.41
EY4.37%
EPS(NY)0.49
Fwd EY5.24%
FCF(TTM)0.34
FCFY3.61%
OCF(TTM)1.11
OCFY11.85%
SpS9.13
BVpS2.48
TBVpS2.4
PEG (NY)N/A
PEG (5Y)0.53
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 | 2.35 |
F-Score5
WACC9.49%
ROIC/WACC0.7
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-12.94%
EPS Next 2Y1.27%
EPS Next 3Y6.39%
EPS Next 5Y6.67%
Revenue 1Y (TTM)0.71%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%5.49%
Revenue Next Year5.1%
Revenue Next 2Y6.36%
Revenue Next 3Y6.97%
Revenue Next 5Y7.21%
EBIT growth 1Y-46.83%
EBIT growth 3Y36.28%
EBIT growth 5Y23.47%
EBIT Next Year61.4%
EBIT Next 3Y28.16%
EBIT Next 5Y21.16%
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%