24.98 USD
-0.06 (-0.24%)
24.98 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RICK. RICK was compared to 132 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year RICK was profitable.
- In the past year RICK had a positive cash flow from operations.
- RICK had positive earnings in 4 of the past 5 years.
- RICK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 2.77%, RICK perfoms like the industry average, outperforming 53.38% of the companies in the same industry.
- RICK has a better Return On Equity (6.14%) than 62.41% of its industry peers.
- RICK has a Return On Invested Capital of 6.89%. This is comparable to the rest of the industry: RICK outperforms 59.40% of its industry peers.
- RICK had an Average Return On Invested Capital over the past 3 years of 9.91%. This is in line with the industry average of 10.36%.
| 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
- With a decent Profit Margin value of 5.88%, RICK is doing good in the industry, outperforming 60.90% of the companies in the same industry.
- In the last couple of years the Profit Margin of RICK has declined.
- Looking at the Operating Margin, with a value of 16.56%, RICK is in the better half of the industry, outperforming 75.19% of the companies in the same industry.
- In the last couple of years the Operating Margin of RICK has declined.
- RICK has a Gross Margin of 57.38%. This is in the better half of the industry: RICK outperforms 69.92% 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.
- 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
- Based on the Altman-Z score of 1.63, we must say that RICK is in the distress zone and has some risk of bankruptcy.
- RICK has a Altman-Z score (1.63) which is comparable to the rest of the industry.
- The Debt to FCF ratio of RICK is 7.17, which is on the high side as it means it would take RICK, 7.17 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RICK (7.17) is better than 72.18% of its industry peers.
- A Debt/Equity ratio of 0.83 indicates that RICK is somewhat dependend on debt financing.
- The Debt to Equity ratio of RICK (0.83) is better than 62.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 7.17 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.82
WACC8.44%
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 48.87% of its industry peers.
- RICK has a Quick 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 Quick ratio of 0.83 is in line compared to the rest of the industry. RICK outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 40.09% over the past year.
- RICK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.22% yearly.
- RICK shows a decrease in Revenue. In the last year, the revenue decreased by -5.34%.
- 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
- RICK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.14% yearly.
- The Revenue is expected to grow by 5.20% on average over the next years.
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.
- 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
- Based on the Price/Earnings ratio of 7.69, the valuation of RICK can be described as very cheap.
- Based on the Price/Earnings ratio, RICK is valued cheaper than 97.74% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. RICK is valued rather cheaply when compared to this.
- RICK is valuated cheaply with a Price/Forward Earnings ratio of 4.01.
- RICK's Price/Forward Earnings ratio is rather cheap when compared to the industry. RICK is cheaper than 99.25% of the companies in the same industry.
- RICK is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.69 | ||
| Fwd PE | 4.01 |
4.2 Price Multiples
- 87.22% of the companies in the same industry are more expensive than RICK, based on the Enterprise Value to EBITDA ratio.
- RICK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RICK is cheaper than 97.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.47 | ||
| EV/EBITDA | 6.97 |
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.
- A more expensive valuation may be justified as RICK's earnings are expected to grow with 48.14% in the coming years.
PEG (NY)0.14
PEG (5Y)1.82
EPS Next 2Y48.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- RICK has a Yearly Dividend Yield of 1.12%.
- RICK's Dividend Yield is a higher than the industry average which is at 1.21.
- RICK's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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.
- RICK has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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
RCI HOSPITALITY HOLDINGS INC / RICK FAQ
Can you provide the ChartMill fundamental rating for RCI HOSPITALITY HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to RICK.
What is the valuation status of RCI HOSPITALITY HOLDINGS INC (RICK) stock?
ChartMill assigns a valuation rating of 9 / 10 to RCI HOSPITALITY HOLDINGS INC (RICK). This can be considered as Undervalued.
What is the profitability of RICK stock?
RCI HOSPITALITY HOLDINGS INC (RICK) has a profitability rating of 5 / 10.
How financially healthy is RCI HOSPITALITY HOLDINGS INC?
The financial health rating of RCI HOSPITALITY HOLDINGS INC (RICK) is 3 / 10.
Can you provide the expected EPS growth for RICK stock?
The Earnings per Share (EPS) of RCI HOSPITALITY HOLDINGS INC (RICK) is expected to grow by 56.23% in the next year.