ARHAUS INC (ARHS) Stock Fundamental Analysis
USA - NASDAQ:ARHS - US04035M1027 - Common Stock
11.03 USD
+0.11 (+1.01%)
11.2 USD
+0.17 (+1.54%)
We assign a fundamental rating of 6 out of 10 to ARHS. ARHS was compared to 122 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making ARHS a very profitable company, without any liquidiy or solvency issues. ARHS has a decent growth rate and is not valued too expensively. This makes ARHS very considerable for quality investing!
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.
In the past 5 years ARHS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.40%, ARHS is doing good in the industry, outperforming 73.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.46%, ARHS belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
ARHS has a Return On Invested Capital of 7.65%. This is in the better half of the industry: ARHS outperforms 68.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARHS is above the industry average of 11.64%.
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
The Profit Margin of ARHS (5.33%) is better than 78.69% of its industry peers.
In the last couple of years the Profit Margin of ARHS has grown nicely.
ARHS's Operating Margin of 6.76% is fine compared to the rest of the industry. ARHS outperforms 75.41% of its industry peers.
ARHS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.34%, ARHS is in line with its industry, outperforming 59.84% of the companies in the same industry.
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.
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
ARHS has an Altman-Z score of 2.56. 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.
Looking at the Altman-Z score, with a value of 2.56, ARHS is in line with its industry, outperforming 58.20% 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.
ARHS's Debt to FCF ratio of 0.93 is amongst the best of the industry. ARHS outperforms 80.33% of its industry peers.
ARHS has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.14, ARHS is in the better half of the industry, outperforming 68.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.79
WACC9.7%
2.3 Liquidity
A Current Ratio of 1.33 indicates that ARHS should not have too much problems paying 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.
ARHS has a Quick ratio of 0.61. This is in the better half of the industry: ARHS outperforms 60.66% 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 | 1.33 | ||
| 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.
The Revenue has been growing slightly by 4.77% in the past 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
The Earnings Per Share is expected to grow by 6.67% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
ARHS is valuated rather expensively with a Price/Earnings ratio of 22.06.
Based on the Price/Earnings ratio, ARHS is valued a bit cheaper than 70.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. ARHS is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 21.35, ARHS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARHS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, ARHS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ARHS.
Based on the Price/Free Cash Flow ratio, ARHS is valued a bit cheaper than the industry average as 66.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.09 | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
The excellent profitability rating of ARHS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y3.74%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
No dividends for ARHS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.03
+0.11 (+1.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners111.65%
Inst Owner Change0%
Ins Owners5.32%
Ins Owner Change2.93%
Market Cap1.55B
Analysts75
Price Target12.33 (11.79%)
Short Float %9.55%
Short Ratio2.4
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)22.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.27%
EPS NY rev (1m)1.6%
EPS NY rev (3m)10.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.06 | ||
| Fwd PE | 21.35 | ||
| P/S | 1.16 | ||
| P/FCF | 27.09 | ||
| P/OCF | 10.78 | ||
| P/B | 4.03 | ||
| P/tB | 4.15 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)0.5
EY4.53%
EPS(NY)0.52
Fwd EY4.68%
FCF(TTM)0.41
FCFY3.69%
OCF(TTM)1.02
OCFY9.28%
SpS9.48
BVpS2.74
TBVpS2.66
PEG (NY)N/A
PEG (5Y)0.51
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 | 0.45 | ||
| Cap/Depr | 328.99% | ||
| Cap/Sales | 6.5% | ||
| Interest Coverage | 17.93 | ||
| Cash Conversion | 123.54% | ||
| Profit Quality | 80.66% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.56 |
F-Score5
WACC9.7%
ROIC/WACC0.79
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)-20.63%
EPS 3Y48.09%
EPS 5Y43.52%
EPS Q2Q%56.25%
EPS Next Y-3.66%
EPS Next 2Y3.74%
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 Year70.62%
EBIT Next 3Y29.08%
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%