Soho House & Co Inc.
Soho House & Co Inc. Fundamental Analysis
Soho House & Co Inc. (SHCO) shows moderate financial fundamentals with a PE ratio of -22.69, profit margin of -6.00%, and ROE of 22.49%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 5.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 116.6/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze SHCO's fundamental strength across five key dimensions:
Efficiency Score
WeakSHCO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSHCO trades at attractive valuation levels.
Growth Score
ModerateSHCO shows steady but slowing expansion.
Financial Health Score
ModerateSHCO shows balanced financial health with some risks.
Profitability Score
ModerateSHCO maintains healthy but balanced margins.
Key Financial Metrics
Is SHCO Expensive or Cheap?
P/E Ratio
SHCO trades at -22.69 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SHCO's PEG of 0.68 indicates potential undervaluation.
Price to Book
The market values Soho House & Co Inc. at -4.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.29 times EBITDA. This is generally considered low.
How Well Does SHCO Make Money?
Net Profit Margin
For every $100 in sales, Soho House & Co Inc. keeps $-6.00 as profit after all expenses.
Operating Margin
Core operations generate 1.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.49 in profit for every $100 of shareholder equity.
ROA
Soho House & Co Inc. generates $-2.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Soho House & Co Inc. generates limited operating cash flow of $125.78M, signaling weaker underlying cash strength.
Free Cash Flow
Soho House & Co Inc. generates weak or negative free cash flow of $25.56M, restricting financial flexibility.
FCF Per Share
Each share generates $0.13 in free cash annually.
FCF Yield
SHCO converts 1.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-22.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-7.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How SHCO Stacks Against Its Sector Peers
| Metric | SHCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -22.69 | 24.97 | Better (Cheaper) |
| ROE | 22.49% | 1167.00% | Weak |
| Net Margin | -6.00% | 673.00% | Weak |
| Debt/Equity | -7.13 | 0.66 | Strong (Low Leverage) |
| Current Ratio | 0.72 | 4.01 | Weak Liquidity |
| ROA | -2.88% | -8477.00% (disorted) | Weak |
SHCO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Soho House & Co Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
97.36%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-34.28%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
4241.84%
Industry Style: Cyclical, Growth, Discretionary
High Growth