RCI HOSPITALITY HOLDINGS INC (RICK) Stock Fundamental Analysis
NASDAQ:RICK - Nasdaq - US74934Q1085 - Common Stock - Currency: USD
Taking everything into account, RICK scores 5 out of 10 in our fundamental rating. RICK was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. RICK has only an average score on both its financial health and profitability. RICK scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
RICK had positive earnings in the past year.
RICK had a positive operating cash flow in the past year.
Of the past 5 years RICK 4 years were profitable.
RICK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RICK's Return On Assets of 1.23% is in line compared to the rest of the industry. RICK outperforms 43.94% of its industry peers.
RICK has a Return On Equity (2.70%) which is comparable to the rest of the industry.
RICK has a Return On Invested Capital of 7.65%. This is in the better half of the industry: RICK outperforms 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RICK is below the industry average of 13.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.7% | ||
| ROIC | 7.65% |
ROA(3y)4.66%
ROA(5y)4.12%
ROE(3y)10.2%
ROE(5y)8.69%
ROIC(3y)9.91%
ROIC(5y)9.06%
1.3 Margins
RICK has a Profit Margin (2.53%) which is in line with its industry peers.
RICK's Profit Margin has declined in the last couple of years.
The Operating Margin of RICK (17.90%) is better than 75.00% of its industry peers.
RICK's Operating Margin has declined in the last couple of years.
The Gross Margin of RICK (57.62%) is better than 71.21% of its industry peers.
In the last couple of years the Gross Margin of RICK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.9% | ||
| PM (TTM) | 2.53% | ||
| GM | 57.62% |
OM growth 3Y-10.94%
OM growth 5Y-1.88%
PM growth 3Y-59.66%
PM growth 5Y-38.1%
GM growth 3Y-0.58%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RICK is still creating some value.
The number of shares outstanding for RICK has been reduced compared to 1 year ago.
Compared to 5 years ago, RICK has less shares outstanding
RICK has a worse debt/assets ratio than last year.
2.2 Solvency
RICK has an Altman-Z score of 1.90. This is not the best score and indicates that RICK is in the grey zone with still only limited risk for bankruptcy at the moment.
RICK has a Altman-Z score (1.90) which is in line with its industry peers.
RICK has a debt to FCF ratio of 7.34. This is a slightly negative value and a sign of low solvency as RICK would need 7.34 years to pay back of all of its debts.
The Debt to FCF ratio of RICK (7.34) is better than 71.97% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that RICK is somewhat dependend on debt financing.
RICK has a Debt to Equity ratio of 0.82. This is in the better half of the industry: RICK outperforms 62.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.34 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.82
WACC9.34%
2.3 Liquidity
RICK has a Current Ratio of 0.98. This is a bad value and indicates that RICK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RICK (0.98) is comparable to the rest of the industry.
RICK has a Quick Ratio of 0.98. This is a bad value and indicates that RICK is not financially healthy enough and could expect problems in meeting its short term obligations.
RICK has a Quick ratio (0.88) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for RICK have decreased strongly by -46.65% in the last year.
RICK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.22% yearly.
The Revenue has decreased by -3.93% in the past year.
Measured over the past years, RICK shows a quite strong growth in Revenue. The Revenue has been growing by 10.30% on average per year.
EPS 1Y (TTM)-46.65%
EPS 3Y-11.38%
EPS 5Y4.22%
EPS Q2Q%-60%
Revenue 1Y (TTM)-3.93%
Revenue growth 3Y14.82%
Revenue growth 5Y10.3%
Sales Q2Q%-8.86%
3.2 Future
Based on estimates for the next years, RICK will show a very strong growth in Earnings Per Share. The EPS will grow by 48.14% on average per year.
RICK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.20% yearly.
EPS Next Y56.23%
EPS Next 2Y48.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.67%
Revenue Next 2Y5.2%
Revenue Next 3YN/A
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 accelerating.
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 16.77, RICK is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of RICK indicates a somewhat cheap valuation: RICK is cheaper than 78.79% of the companies listed in the same industry.
RICK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.00 indicates a rather cheap valuation of RICK.
Based on the Price/Forward Earnings ratio, RICK is valued cheaper than 96.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RICK to the average of the S&P500 Index (36.44), we can say RICK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 6 |
4.2 Price Multiples
RICK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RICK is cheaper than 81.82% of the companies in the same industry.
93.18% of the companies in the same industry are more expensive than RICK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.96 | ||
| EV/EBITDA | 8.16 |
4.3 Compensation for Growth
RICK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RICK's earnings are expected to grow with 48.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)3.98
EPS Next 2Y48.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, RICK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.47, RICK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, RICK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of RICK grows each year by 14.14%, which is quite nice.
RICK has paid a dividend for at least 10 years, which is a reliable track record.
As RICK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)14.14%
Div Incr Years6
Div Non Decr Years8
5.3 Sustainability
33.33% of the earnings are spent on dividend by RICK. This is a low number and sustainable payout ratio.
RICK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.33%
EPS Next 2Y48.14%
EPS Next 3YN/A
37.39
-0.56 (-1.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners51.41%
Inst Owner Change0%
Ins Owners8.42%
Ins Owner Change0.34%
Market Cap327.54M
Analysts82.86
Price Target99.96 (167.34%)
Short Float %7.1%
Short Ratio11.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.25
Dividend Growth(5Y)14.14%
DP33.33%
Div Incr Years6
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.34%
Min EPS beat(2)13.85%
Max EPS beat(2)50.83%
EPS beat(4)3
Avg EPS beat(4)57.41%
Min EPS beat(4)-166.95%
Max EPS beat(4)331.9%
EPS beat(8)3
Avg EPS beat(8)24.58%
EPS beat(12)6
Avg EPS beat(12)18.48%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-1.79%
Revenue beat(12)1
Avg Revenue beat(12)-1.68%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 6 | ||
| P/S | 1.14 | ||
| P/FCF | 9.96 | ||
| P/OCF | 6.14 | ||
| P/B | 1.22 | ||
| P/tB | 8.42 | ||
| EV/EBITDA | 8.16 |
EPS(TTM)2.23
EY5.96%
EPS(NY)6.23
Fwd EY16.67%
FCF(TTM)3.76
FCFY10.04%
OCF(TTM)6.09
OCFY16.27%
SpS32.74
BVpS30.68
TBVpS4.44
PEG (NY)0.3
PEG (5Y)3.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.23% | ||
| ROE | 2.7% | ||
| ROCE | 9.45% | ||
| ROIC | 7.65% | ||
| ROICexc | 8.14% | ||
| ROICexgc | 14.81% | ||
| OM | 17.9% | ||
| PM (TTM) | 2.53% | ||
| GM | 57.62% | ||
| FCFM | 11.47% |
ROA(3y)4.66%
ROA(5y)4.12%
ROE(3y)10.2%
ROE(5y)8.69%
ROIC(3y)9.91%
ROIC(5y)9.06%
ROICexc(3y)10.52%
ROICexc(5y)9.75%
ROICexgc(3y)19.33%
ROICexgc(5y)16.95%
ROCE(3y)12.24%
ROCE(5y)11.19%
ROICexcg growth 3Y-8.64%
ROICexcg growth 5Y-1.17%
ROICexc growth 3Y-13.42%
ROICexc growth 5Y-2.02%
OM growth 3Y-10.94%
OM growth 5Y-1.88%
PM growth 3Y-59.66%
PM growth 5Y-38.1%
GM growth 3Y-0.58%
GM growth 5Y-0.36%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.34 | ||
| Debt/EBITDA | 3.34 | ||
| Cap/Depr | 136.01% | ||
| Cap/Sales | 7.12% | ||
| Interest Coverage | 3.17 | ||
| Cash Conversion | 80.37% | ||
| Profit Quality | 452.79% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.9 |
F-Score5
WACC9.34%
ROIC/WACC0.82
Cap/Depr(3y)206.68%
Cap/Depr(5y)169.79%
Cap/Sales(3y)10.35%
Cap/Sales(5y)8.46%
Profit Quality(3y)397.05%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.65%
EPS 3Y-11.38%
EPS 5Y4.22%
EPS Q2Q%-60%
EPS Next Y56.23%
EPS Next 2Y48.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.93%
Revenue growth 3Y14.82%
Revenue growth 5Y10.3%
Sales Q2Q%-8.86%
Revenue Next Year1.67%
Revenue Next 2Y5.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-13.62%
EBIT growth 3Y2.25%
EBIT growth 5Y8.22%
EBIT Next Year236.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.1%
FCF growth 3Y3.18%
FCF growth 5Y13.7%
OCF growth 1Y-21.99%
OCF growth 3Y10%
OCF growth 5Y8.5%