RCI HOSPITALITY HOLDINGS INC (RICK) Stock Fundamental Analysis
NASDAQ:RICK - US74934Q1085 - Common Stock
36.16 USD
-0.01 (-0.03%)
36.16 USD
0 (0%)
RICK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. While RICK is still in line with the averages on profitability rating, there are concerns on its financial health. RICK may be a bit undervalued, certainly considering the very reasonable score on growth
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.
RICK had positive earnings in 4 of the past 5 years.
In the past 5 years RICK always reported a positive cash flow from operatings.
1.2 Ratios
RICK has a Return On Assets (2.77%) which is comparable to the rest of the industry.
RICK has a Return On Equity (6.14%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.89%, RICK perfoms like the industry average, outperforming 59.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RICK is significantly below the industry average of 15.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 6.14% | ||
| ROIC | 6.89% |
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 (5.88%) which is comparable to the rest of the industry.
RICK's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 16.56%, RICK is doing good in the industry, outperforming 72.39% of the companies in the same industry.
RICK's Operating Margin has declined in the last couple of years.
RICK has a Gross Margin of 57.38%. This is in the better half of the industry: RICK outperforms 70.15% 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 | 16.56% | ||
| PM (TTM) | 5.88% | ||
| GM | 57.38% |
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
RICK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RICK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RICK has been reduced compared to 5 years ago.
RICK has a worse debt/assets ratio than last year.
2.2 Solvency
RICK has an Altman-Z score of 1.81. This is a bad value and indicates that RICK is not financially healthy and even has some risk of bankruptcy.
RICK has a Altman-Z score (1.81) which is in line with its industry peers.
RICK has a debt to FCF ratio of 7.17. This is a slightly negative value and a sign of low solvency as RICK would need 7.17 years to pay back of all of its debts.
The Debt to FCF ratio of RICK (7.17) is better than 70.15% of its industry peers.
RICK has a Debt/Equity ratio of 0.83. This is a neutral value indicating RICK is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.83, RICK is doing good in the industry, outperforming 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.76
WACC9.06%
2.3 Liquidity
RICK has a Current Ratio of 0.92. 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's Current ratio of 0.92 is in line compared to the rest of the industry. RICK outperforms 52.99% of its industry peers.
A Quick Ratio of 0.83 indicates that RICK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.83, RICK is in line with its industry, outperforming 50.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
RICK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.09%, which is quite impressive.
RICK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.22% yearly.
Looking at the last year, RICK shows a decrease in Revenue. The Revenue has decreased by -5.34% in the last year.
The Revenue has been growing by 10.30% on average over the past years. This is quite good.
EPS 1Y (TTM)40.09%
EPS 3Y-11.38%
EPS 5Y4.22%
EPS Q2Q%182.14%
Revenue 1Y (TTM)-5.34%
Revenue growth 3Y14.82%
Revenue growth 5Y10.3%
Sales Q2Q%-6.6%
3.2 Future
The Earnings Per Share is expected to grow by 48.14% on average over the next years. This is a very strong growth
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 11.13, the valuation of RICK can be described as very reasonable.
Based on the Price/Earnings ratio, RICK is valued cheaper than 91.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of RICK to the average of the S&P500 Index (27.06), we can say RICK is valued rather cheaply.
The Price/Forward Earnings ratio is 5.80, which indicates a rather cheap valuation of RICK.
RICK's Price/Forward Earnings ratio is rather cheap when compared to the industry. RICK is cheaper than 97.01% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, RICK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.13 | ||
| Fwd PE | 5.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RICK is valued a bit cheaper than the industry average as 79.10% of the companies are valued more expensively.
RICK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RICK is cheaper than 93.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.37 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
The 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)0.2
PEG (5Y)2.64
EPS Next 2Y48.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, RICK is not a good candidate for dividend investing.
RICK's Dividend Yield is a higher than the industry average which is at 4.01.
Compared to an average S&P500 Dividend Yield of 2.45, RICK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
On average, the dividend of RICK grows each year by 14.14%, which is quite nice.
RICK has been paying a dividend for at least 10 years, so it has 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
RICK pays out 15.00% of its income as dividend. This is a sustainable payout ratio.
RICK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15%
EPS Next 2Y48.14%
EPS Next 3YN/A
36.16
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners51.04%
Inst Owner Change-3.02%
Ins Owners8.46%
Ins Owner Change0.33%
Market Cap315.32M
Analysts82.86
Price Target99.96 (176.44%)
Short Float %6.83%
Short Ratio7.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend0.25
Dividend Growth(5Y)14.14%
DP15%
Div Incr Years6
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-24.89%
Min EPS beat(2)-63.63%
Max EPS beat(2)13.85%
EPS beat(4)3
Avg EPS beat(4)83.24%
Min EPS beat(4)-63.63%
Max EPS beat(4)331.9%
EPS beat(8)3
Avg EPS beat(8)16.87%
EPS beat(12)5
Avg EPS beat(12)11.69%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.42%
Min Revenue beat(2)-10.8%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-3.98%
Min Revenue beat(4)-10.8%
Max Revenue beat(4)-1.46%
Revenue beat(8)0
Avg Revenue beat(8)-2.9%
Revenue beat(12)1
Avg Revenue beat(12)-2.35%
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)0%
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 | 11.13 | ||
| Fwd PE | 5.8 | ||
| P/S | 1.12 | ||
| P/FCF | 9.37 | ||
| P/OCF | 6.14 | ||
| P/B | 1.17 | ||
| P/tB | 9.74 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)3.25
EY8.99%
EPS(NY)6.23
Fwd EY17.24%
FCF(TTM)3.86
FCFY10.68%
OCF(TTM)5.89
OCFY16.28%
SpS32.31
BVpS30.91
TBVpS3.71
PEG (NY)0.2
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 6.14% | ||
| ROCE | 8.51% | ||
| ROIC | 6.89% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 13.4% | ||
| OM | 16.56% | ||
| PM (TTM) | 5.88% | ||
| GM | 57.38% | ||
| FCFM | 11.95% |
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-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.17 | ||
| Debt/EBITDA | 3.61 | ||
| Cap/Depr | 117.85% | ||
| Cap/Sales | 6.27% | ||
| Interest Coverage | 2.92 | ||
| Cash Conversion | 83.26% | ||
| Profit Quality | 203.33% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.81 |
F-Score6
WACC9.06%
ROIC/WACC0.76
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)40.09%
EPS 3Y-11.38%
EPS 5Y4.22%
EPS Q2Q%182.14%
EPS Next Y56.23%
EPS Next 2Y48.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.34%
Revenue growth 3Y14.82%
Revenue growth 5Y10.3%
Sales Q2Q%-6.6%
Revenue Next Year1.67%
Revenue Next 2Y5.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-18.18%
EBIT growth 3Y2.25%
EBIT growth 5Y8.22%
EBIT Next Year236.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y20.19%
FCF growth 3Y3.18%
FCF growth 5Y13.7%
OCF growth 1Y-20.73%
OCF growth 3Y10%
OCF growth 5Y8.5%