RCI Hospitality Holdings, Inc.
RCI Hospitality Holdings, Inc. Fundamental Analysis
RCI Hospitality Holdings, Inc. (RICK) shows weak financial fundamentals with a PE ratio of 11.78, profit margin of 5.88%, and ROE of 6.19%. The company generates $0.3B in annual revenue with weak year-over-year growth of 0.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RICK's fundamental strength across five key dimensions:
Efficiency Score
WeakRICK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRICK trades at attractive valuation levels.
Growth Score
WeakRICK faces weak or negative growth trends.
Financial Health Score
WeakRICK carries high financial risk with limited liquidity.
Profitability Score
WeakRICK struggles to sustain strong margins.
Key Financial Metrics
Is RICK Expensive or Cheap?
P/E Ratio
RICK trades at 11.78 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RICK's PEG of 0.10 indicates potential undervaluation.
Price to Book
The market values RCI Hospitality Holdings, Inc. at 0.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.98 times EBITDA. This is generally considered low.
How Well Does RICK Make Money?
Net Profit Margin
For every $100 in sales, RCI Hospitality Holdings, Inc. keeps $5.88 as profit after all expenses.
Operating Margin
Core operations generate 12.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.19 in profit for every $100 of shareholder equity.
ROA
RCI Hospitality Holdings, Inc. generates $2.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RCI Hospitality Holdings, Inc. produces operating cash flow of $50.91M, showing steady but balanced cash generation.
Free Cash Flow
RCI Hospitality Holdings, Inc. generates strong free cash flow of $33.38M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.83 in free cash annually.
FCF Yield
RICK converts 17.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How RICK Stacks Against Its Sector Peers
| Metric | RICK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.78 | 24.85 | Better (Cheaper) |
| ROE | 6.19% | 1165.00% | Weak |
| Net Margin | 5.88% | 749.00% | Weak |
| Debt/Equity | 1.01 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.92 | 9.23 | Weak Liquidity |
| ROA | 2.77% | 1271.00% | Weak |
RICK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RCI Hospitality Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
70.44%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-84.51%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
56.94%
Industry Style: Cyclical, Growth, Discretionary
High Growth