ARHAUS INC (ARHS) Stock Fundamental Analysis
USA - NASDAQ:ARHS - US04035M1027 - Common Stock
10.77 USD
-0.47 (-4.18%)
10.77 USD
0 (0%)
ARHS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 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
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.
Each year in the past 5 years ARHS had a positive operating cash flow.
1.2 Ratios
ARHS's Return On Assets of 5.40% is fine compared to the rest of the industry. ARHS outperforms 72.36% of its industry peers.
With a decent Return On Equity value of 18.46%, ARHS is doing good in the industry, outperforming 79.67% of the companies in the same industry.
ARHS's Return On Invested Capital of 7.65% is fine compared to the rest of the industry. ARHS outperforms 68.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARHS is above the industry average of 11.93%.
The last Return On Invested Capital (7.65%) 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 | 5.4% | ||
| 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 has a Profit Margin of 5.33%. This is in the better half of the industry: ARHS outperforms 78.05% of its industry peers.
ARHS's Profit Margin has improved in the last couple of years.
ARHS has a better Operating Margin (6.76%) than 75.61% of its industry peers.
In the last couple of years the Operating Margin of ARHS has grown nicely.
The Gross Margin of ARHS (39.34%) is better than 60.98% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ARHS is creating some value.
Compared to 1 year ago, ARHS has more shares outstanding
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 2.54 indicates that ARHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.54, ARHS is in line with its industry, outperforming 54.47% of the companies in the same industry.
ARHS has a debt to FCF ratio of 0.93. This is a very positive value and a sign of high solvency as it would only need 0.93 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.93, ARHS is doing good in the industry, outperforming 79.67% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that ARHS is not too dependend on debt financing.
ARHS's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. ARHS outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.8
WACC9.53%
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 in line with its industry peers.
ARHS has a Quick Ratio of 1.33. 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 0.61. This is in the better half of the industry: ARHS outperforms 60.98% of its industry peers.
| 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.
ARHS shows a small growth in Revenue. In the last year, the Revenue has grown by 4.77%.
The Revenue has been growing by 20.78% on average over the past years. This is a very strong growth!
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
ARHS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.67% yearly.
The Revenue is expected to grow by 7.58% on average over the next years.
EPS Next Y-5.18%
EPS Next 2Y3.37%
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
With a Price/Earnings ratio of 21.54, ARHS is valued on the expensive side.
Based on the Price/Earnings ratio, ARHS is valued a bit cheaper than 71.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, ARHS is valued a bit cheaper.
The Price/Forward Earnings ratio is 21.00, which indicates a rather expensive current 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 22.73, ARHS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.54 | ||
| Fwd PE | 21 |
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 69.92% of the companies listed in the same industry.
69.11% of the companies in the same industry are more expensive than ARHS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.45 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
The excellent profitability rating of ARHS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y3.37%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
ARHS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.77
-0.47 (-4.18%)
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 Change7.76%
Market Cap1.52B
Analysts75
Price Target12.33 (14.48%)
Short Float %8.46%
Short Ratio2.05
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)22.36%
PT rev (3m)22.36%
EPS NQ rev (1m)5.84%
EPS NQ rev (3m)12.27%
EPS NY rev (1m)8.91%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)1.4%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.54 | ||
| Fwd PE | 21 | ||
| P/S | 1.14 | ||
| P/FCF | 26.45 | ||
| P/OCF | 10.53 | ||
| P/B | 3.94 | ||
| P/tB | 4.05 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)0.5
EY4.64%
EPS(NY)0.51
Fwd EY4.76%
FCF(TTM)0.41
FCFY3.78%
OCF(TTM)1.02
OCFY9.5%
SpS9.48
BVpS2.74
TBVpS2.66
PEG (NY)N/A
PEG (5Y)0.49
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 | 2.54 |
F-Score5
WACC9.53%
ROIC/WACC0.8
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-5.18%
EPS Next 2Y3.37%
EPS Next 3Y8.13%
EPS Next 5Y6.67%
Revenue 1Y (TTM)4.77%
Revenue growth 3Y16.84%
Revenue growth 5Y20.78%
Sales Q2Q%15.7%
Revenue Next Year6.56%
Revenue Next 2Y6.8%
Revenue Next 3Y7.28%
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%