ARHAUS INC (ARHS) Stock Fundamental Analysis
NASDAQ:ARHS - Nasdaq - US04035M1027 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ARHS. ARHS was compared to 121 industry peers in the Specialty Retail industry. ARHS has an excellent profitability rating, but 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.
ARHS had positive earnings in each of the past 5 years.
Each year in the past 5 years ARHS had a positive operating cash flow.
1.2 Ratios
ARHS's Return On Assets of 4.61% is fine compared to the rest of the industry. ARHS outperforms 66.94% of its industry peers.
Looking at the Return On Equity, with a value of 16.72%, ARHS is in the better half of the industry, outperforming 74.38% of the companies in the same industry.
ARHS has a better Return On Invested Capital (6.60%) than 62.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARHS is above the industry average of 13.03%.
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
Looking at the Profit Margin, with a value of 4.53%, ARHS is in the better half of the industry, outperforming 75.21% of the companies in the same industry.
ARHS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 5.67%, ARHS is doing good in the industry, outperforming 71.90% of the companies in the same industry.
In the last couple of years the Operating Margin of ARHS has grown nicely.
The Gross Margin of ARHS (38.98%) is comparable to the rest of the 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARHS is still creating some value.
The number of shares outstanding for ARHS has been increased compared to 1 year ago.
ARHS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARHS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.29 indicates that ARHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
ARHS has a Altman-Z score of 2.29. This is comparable to the rest of the industry: ARHS outperforms 51.24% 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.
The Debt to FCF ratio of ARHS (1.11) is better than 79.34% 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's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. ARHS outperforms 66.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.69
WACC9.52%
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 45.45% of the companies in the same industry.
ARHS has a Quick Ratio of 1.26. This is a bad value and indicates that ARHS is not financially healthy enough and could expect problems in meeting 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.
| 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%.
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 0.71% 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)-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.
Based on estimates for the next years, ARHS will show a small growth in Revenue. The Revenue will grow by 7.04% on average per year.
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
Based on the Price/Earnings ratio of 21.32, the valuation of ARHS can be described as rather expensive.
65.29% 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 (26.34), we can say ARHS is valued inline with the index average.
A Price/Forward Earnings ratio of 17.69 indicates a rather expensive valuation of ARHS.
The rest of the industry has a similar Price/Forward Earnings ratio as ARHS.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, ARHS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 17.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARHS is valued a bit cheaper than 72.73% 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 62.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.8 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
ARHS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
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 |
8.74
+0.12 (+1.39%)
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 Cap1.23B
Analysts75.79
Price Target10.07 (15.22%)
Short Float %10.7%
Short Ratio3.17
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%
EPS NY rev (3m)-20.94%
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 | 21.32 | ||
| Fwd PE | 17.69 | ||
| P/S | 0.96 | ||
| P/FCF | 25.8 | ||
| P/OCF | 7.86 | ||
| P/B | 3.53 | ||
| P/tB | 3.65 | ||
| EV/EBITDA | 6.99 |
EPS(TTM)0.41
EY4.69%
EPS(NY)0.49
Fwd EY5.65%
FCF(TTM)0.34
FCFY3.88%
OCF(TTM)1.11
OCFY12.73%
SpS9.13
BVpS2.48
TBVpS2.4
PEG (NY)N/A
PEG (5Y)0.49
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 | 2.29 |
F-Score5
WACC9.52%
ROIC/WACC0.69
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%