RCI HOSPITALITY HOLDINGS INC (RICK) Stock Fundamental Analysis
NASDAQ:RICK - Nasdaq - US74934Q1085 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RICK. RICK was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of RICK get a neutral evaluation. Nothing too spectacular is happening here. 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.
Each year in the past 5 years RICK had a positive operating cash flow.
1.2 Ratios
RICK has a Return On Assets (1.23%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.70%, RICK is in line with its industry, outperforming 57.14% 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 64.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RICK is below the industry average of 13.97%.
| 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
With a Profit Margin value of 2.53%, RICK perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
RICK's Profit Margin has declined in the last couple of years.
RICK has a better Operating Margin (17.90%) than 75.19% of its industry peers.
RICK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 57.62%, RICK is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RICK is creating some value.
Compared to 1 year ago, RICK has less shares outstanding
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 1.94. 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 (1.94) 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's Debt to FCF ratio of 7.34 is fine compared to the rest of the industry. RICK outperforms 70.68% of its industry peers.
A Debt/Equity ratio of 0.82 indicates that RICK is somewhat dependend on debt financing.
The Debt to Equity ratio of RICK (0.82) is better than 66.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 7.34 | ||
| Altman-Z | 1.94 |
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.
RICK has a Current ratio (0.98) which is in line with 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
The earnings per share for RICK have decreased strongly by -46.65% in the last year.
The Earnings Per Share has been growing slightly by 4.22% on average over the past years.
Looking at the last year, RICK shows a decrease in Revenue. The Revenue has decreased by -3.93% in the last 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
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
With a Price/Earnings ratio of 18.69, RICK is valued on the expensive side.
Based on the Price/Earnings ratio, RICK is valued a bit cheaper than the industry average as 72.93% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.52, RICK is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 6.69, the valuation of RICK can be described as very cheap.
Based on the Price/Forward Earnings ratio, RICK is valued cheaper than 95.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.25. RICK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 6.69 |
4.2 Price Multiples
76.69% 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 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.15 | ||
| EV/EBITDA | 8.51 |
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)0.33
PEG (5Y)4.43
EPS Next 2Y48.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RICK has a yearly dividend return of 0.69%, which is pretty low.
RICK's Dividend Yield is a higher than the industry average which is at 3.80.
Compared to an average S&P500 Dividend Yield of 2.38, RICK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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
41.68
+1.28 (+3.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners51.59%
Inst Owner Change-0.2%
Ins Owners8.33%
Ins Owner Change0.35%
Market Cap366.78M
Analysts82.86
Price Target99.96 (139.83%)
Short Float %6.48%
Short Ratio9.29
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)-10.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 6.69 | ||
| P/S | 1.28 | ||
| P/FCF | 11.15 | ||
| P/OCF | 6.88 | ||
| P/B | 1.36 | ||
| P/tB | 9.43 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)2.23
EY5.35%
EPS(NY)6.23
Fwd EY14.95%
FCF(TTM)3.74
FCFY8.97%
OCF(TTM)6.06
OCFY14.53%
SpS32.59
BVpS30.54
TBVpS4.42
PEG (NY)0.33
PEG (5Y)4.43
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 | 1.94 |
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%