ARHAUS INC (ARHS) Stock Fundamental Analysis
USA - NASDAQ:ARHS - US04035M1027 - Common Stock
9.03 USD
-0.14 (-1.53%)
9.03 USD
0 (0%)
Overall ARHS gets a fundamental rating of 6 out of 10. We evaluated ARHS against 122 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ARHS was profitable.
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
The Return On Assets of ARHS (5.33%) is better than 71.31% of its industry peers.
ARHS has a Return On Equity of 18.35%. This is in the better half of the industry: ARHS outperforms 78.69% of its industry peers.
ARHS has a better Return On Invested Capital (7.88%) than 68.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARHS is above the industry average of 11.80%.
The last Return On Invested Capital (7.88%) for ARHS is well below the 3 year average (16.29%), which needs to be investigated, but indicates that ARHS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 18.35% | ||
| ROIC | 7.88% |
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 5.40% is fine compared to the rest of the industry. ARHS outperforms 77.87% of its industry peers.
ARHS's Profit Margin has improved in the last couple of years.
ARHS has a Operating Margin of 7.06%. This is in the better half of the industry: ARHS outperforms 75.41% of its industry peers.
ARHS's Operating Margin has improved in the last couple of years.
ARHS has a Gross Margin of 39.37%. This is in the better half of the industry: ARHS outperforms 60.66% of its industry peers.
ARHS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.06% | ||
| PM (TTM) | 5.4% | ||
| GM | 39.37% |
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.
ARHS has more shares outstanding than it did 1 year ago.
ARHS has more shares outstanding than it did 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 has a Altman-Z score of 2.35. This is comparable to the rest of the industry: ARHS outperforms 52.46% of its industry peers.
ARHS has a debt to FCF ratio of 0.66. This is a very positive value and a sign of high solvency as it would only need 0.66 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.66, ARHS belongs to the top of the industry, outperforming 83.61% of the companies in the same industry.
ARHS has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ARHS (0.13) is better than 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.66 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.85
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.34 indicates that ARHS should not have too much problems paying its short term obligations.
ARHS has a Current ratio (1.34) which is in line with its industry peers.
ARHS has a Quick Ratio of 1.34. 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 has a Quick ratio of 0.64. This is comparable to the rest of the industry: ARHS outperforms 57.38% 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 | 1.34 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for ARHS have decreased by -7.14% 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.
ARHS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.36%.
The Revenue has been growing by 20.78% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-7.14%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%28.57%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%7.97%
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.
Based on estimates for the next years, ARHS will show a small growth in Revenue. The Revenue will grow by 7.58% on average per year.
EPS Next Y-3.66%
EPS Next 2Y3.74%
EPS Next 3Y8.13%
EPS Next 5Y6.67%
Revenue Next Year6.56%
Revenue Next 2Y6.8%
Revenue Next 3Y7.28%
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 17.37, the valuation of ARHS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ARHS indicates a somewhat cheap valuation: ARHS is cheaper than 73.77% of the companies listed in the same industry.
ARHS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 17.48, which indicates a rather expensive current valuation of ARHS.
60.66% of the companies in the same industry are more expensive than ARHS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.59. ARHS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARHS is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, ARHS is valued a bit cheaper than 75.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.76 | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
The excellent profitability rating of ARHS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y3.74%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
ARHS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.03
-0.14 (-1.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners111.65%
Inst Owner Change-0.17%
Ins Owners5.32%
Ins Owner Change2.72%
Market Cap1.27B
Revenue(TTM)1.36B
Net Income(TTM)73.46M
Analysts75
Price Target12.33 (36.54%)
Short Float %8.53%
Short Ratio2.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.5
Dividend Growth(5Y)N/A
DP0.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.75%
Min EPS beat(2)11.39%
Max EPS beat(2)64.1%
EPS beat(4)3
Avg EPS beat(4)12.85%
Min EPS beat(4)-36.28%
Max EPS beat(4)64.1%
EPS beat(8)6
Avg EPS beat(8)77.53%
EPS beat(12)10
Avg EPS beat(12)61.45%
EPS beat(16)14
Avg EPS beat(16)75.68%
Revenue beat(2)1
Avg Revenue beat(2)2.6%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)5.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)5.32%
Revenue beat(8)3
Avg Revenue beat(8)0.13%
Revenue beat(12)5
Avg Revenue beat(12)-0.56%
Revenue beat(16)9
Avg Revenue beat(16)1.92%
PT rev (1m)0%
PT rev (3m)22.36%
EPS NQ rev (1m)1.83%
EPS NQ rev (3m)14.32%
EPS NY rev (1m)0%
EPS NY rev (3m)10.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 17.48 | ||
| P/S | 0.94 | ||
| P/FCF | 15.76 | ||
| P/OCF | 7.99 | ||
| P/B | 3.18 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 9.46 |
EPS(TTM)0.52
EY5.76%
EPS(NY)0.52
Fwd EY5.72%
FCF(TTM)0.57
FCFY6.35%
OCF(TTM)1.13
OCFY12.51%
SpS9.66
BVpS2.84
TBVpS2.76
PEG (NY)N/A
PEG (5Y)0.4
Graham Number5.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.33% | ||
| ROE | 18.35% | ||
| ROCE | 10.53% | ||
| ROIC | 7.88% | ||
| ROICexc | 11.06% | ||
| ROICexgc | 11.25% | ||
| OM | 7.06% | ||
| PM (TTM) | 5.4% | ||
| GM | 39.37% | ||
| FCFM | 5.93% |
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%
ROICexgc growth 3Y-40.08%
ROICexgc 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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.66 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 424.55% | ||
| Cap/Sales | 5.76% | ||
| Interest Coverage | 19.06 | ||
| Cash Conversion | 138.98% | ||
| Profit Quality | 109.97% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 2.35 |
F-Score5
WACC9.31%
ROIC/WACC0.85
Cap/Depr(3y)267.91%
Cap/Depr(5y)216.12%
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)-7.14%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%28.57%
EPS Next Y-3.66%
EPS Next 2Y3.74%
EPS Next 3Y8.13%
EPS Next 5Y6.67%
Revenue 1Y (TTM)7.36%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%7.97%
Revenue Next Year6.56%
Revenue Next 2Y6.8%
Revenue Next 3Y7.28%
Revenue Next 5Y7.58%
EBIT growth 1Y-3.33%
EBIT growth 3Y36.28%
EBIT growth 5Y23.47%
EBIT Next Year70.62%
EBIT Next 3Y29.08%
EBIT Next 5Y21.19%
FCF growth 1Y-9.94%
FCF growth 3Y-26.06%
FCF growth 5Y27.06%
OCF growth 1Y7.8%
OCF growth 3Y0.21%
OCF growth 5Y46.37%
ARHAUS INC / ARHS FAQ
Can you provide the ChartMill fundamental rating for ARHAUS INC?
ChartMill assigns a fundamental rating of 6 / 10 to ARHS.
Can you provide the valuation status for ARHAUS INC?
ChartMill assigns a valuation rating of 4 / 10 to ARHAUS INC (ARHS). This can be considered as Fairly Valued.
Can you provide the profitability details for ARHAUS INC?
ARHAUS INC (ARHS) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ARHS stock?
The Price/Earnings (PE) ratio for ARHAUS INC (ARHS) is 17.37 and the Price/Book (PB) ratio is 3.18.
What is the expected EPS growth for ARHAUS INC (ARHS) stock?
The Earnings per Share (EPS) of ARHAUS INC (ARHS) is expected to decline by -3.66% in the next year.