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 131 industry peers in the Hotels, Restaurants & Leisure industry. RICK has only an average score on both its financial health and profitability. RICK is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
RICK had positive earnings in the past year.
In the past year RICK had a positive cash flow from operations.
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 of 1.23%. This is comparable to the rest of the industry: RICK outperforms 42.75% of its industry peers.
Looking at the Return On Equity, with a value of 2.70%, RICK is in line with its industry, outperforming 55.73% of the companies in the same industry.
RICK's Return On Invested Capital of 7.65% is fine compared to the rest of the industry. RICK outperforms 61.83% of its industry peers.
RICK had an Average Return On Invested Capital over the past 3 years of 9.91%. This is significantly below the industry average of 15.81%.
| 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's Profit Margin of 2.53% is in line compared to the rest of the industry. RICK outperforms 48.09% of its industry peers.
RICK's Profit Margin has declined in the last couple of years.
RICK has a better Operating Margin (17.90%) than 74.81% 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 71.76% 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.
The number of shares outstanding for RICK has been reduced compared to 5 years ago.
The debt/assets ratio for RICK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.86 indicates that RICK is not a great score, but indicates only limited risk for bankruptcy at the moment.
RICK has a Altman-Z score (1.86) 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.
RICK has a better Debt to FCF ratio (7.34) than 70.99% of its industry peers.
RICK has a Debt/Equity ratio of 0.82. This is a neutral value indicating 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 63.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.34 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.82
WACC9.33%
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.
RICK has a Current ratio of 0.98. This is comparable to the rest of the industry: RICK outperforms 54.20% of its industry peers.
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.
The Quick ratio of RICK (0.88) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
RICK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.65%.
Measured over the past 5 years, RICK shows a small growth in Earnings Per Share. The EPS has been growing by 4.22% on average per year.
The Revenue has decreased by -3.93% in the past year.
The Revenue has been growing by 10.30% on average over the past years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 15.71, which indicates a correct valuation of RICK.
Compared to the rest of the industry, the Price/Earnings ratio of RICK indicates a rather cheap valuation: RICK is cheaper than 80.15% of the companies listed in the same industry.
RICK is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 5.62, which indicates a rather cheap valuation of RICK.
Based on the Price/Forward Earnings ratio, RICK is valued cheaply inside the industry as 95.42% of the companies are valued more expensively.
RICK is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 5.62 |
4.2 Price Multiples
RICK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RICK is cheaper than 79.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RICK is valued cheaper than 93.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.33 | ||
| EV/EBITDA | 7.86 |
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)0.28
PEG (5Y)3.73
EPS Next 2Y48.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, RICK is not a good candidate for dividend investing.
RICK's Dividend Yield is a higher than the industry average which is at 3.98.
Compared to an average S&P500 Dividend Yield of 2.39, RICK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of RICK is nicely growing with an annual growth rate of 14.14%!
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
RICK pays out 33.33% of its income as dividend. This is a sustainable payout ratio.
The dividend of RICK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.33%
EPS Next 2Y48.14%
EPS Next 3YN/A
35.04
-0.64 (-1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners51.04%
Inst Owner Change0.15%
Ins Owners8.46%
Ins Owner Change0.34%
Market Cap306.95M
Analysts82.86
Price Target99.96 (185.27%)
Short Float %7.17%
Short Ratio10.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)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 | 15.71 | ||
| Fwd PE | 5.62 | ||
| P/S | 1.07 | ||
| P/FCF | 9.33 | ||
| P/OCF | 5.76 | ||
| P/B | 1.14 | ||
| P/tB | 7.9 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)2.23
EY6.36%
EPS(NY)6.23
Fwd EY17.79%
FCF(TTM)3.76
FCFY10.72%
OCF(TTM)6.09
OCFY17.37%
SpS32.74
BVpS30.68
TBVpS4.44
PEG (NY)0.28
PEG (5Y)3.73
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 | 1.86 |
F-Score5
WACC9.33%
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%