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Arhaus Inc (ARHS)ARHS
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Upturn Advisory Summary
11/06/2024: ARHS (5-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 184.79% | Upturn Advisory Performance 5 | Avg. Invested days: 49 |
Profits based on simulation | Stock Returns Performance 5 | Last Close 11/06/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 184.79% | Avg. Invested days: 49 |
Upturn Star Rating | Stock Returns Performance 5 |
Profits based on simulation Last Close 11/06/2024 | Upturn Advisory Performance 5 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.26B USD |
Price to earnings Ratio 14.25 | 1Y Target Price 13.04 |
Dividends yield (FY) - | Basic EPS (TTM) 0.63 |
Volume (30-day avg) 1483112 | Beta 2.51 |
52 Weeks Range 7.77 - 19.81 | Updated Date 11/6/2024 |
Company Size Small-Cap Stock | Market Capitalization 1.26B USD | Price to earnings Ratio 14.25 | 1Y Target Price 13.04 |
Dividends yield (FY) - | Basic EPS (TTM) 0.63 | Volume (30-day avg) 1483112 | Beta 2.51 |
52 Weeks Range 7.77 - 19.81 | Updated Date 11/6/2024 |
Earnings Date
Report Date 2024-11-07 | When BeforeMarket |
Estimate 0.08 | Actual - |
Report Date 2024-11-07 | When BeforeMarket | Estimate 0.08 | Actual - |
Profitability
Profit Margin 6.92% | Operating Margin (TTM) 9.48% |
Management Effectiveness
Return on Assets (TTM) 6.31% | Return on Equity (TTM) 29.58% |
Revenue by Products
Revenue by Products - Current and Previous Year
Valuation
Trailing PE 14.25 | Forward PE - |
Enterprise Value 1610123419 | Price to Sales(TTM) 0.99 |
Enterprise Value to Revenue 1.26 | Enterprise Value to EBITDA 8.91 |
Shares Outstanding 53460600 | Shares Floating 51012297 |
Percent Insiders 3.37 | Percent Institutions 114.17 |
Trailing PE 14.25 | Forward PE - | Enterprise Value 1610123419 | Price to Sales(TTM) 0.99 |
Enterprise Value to Revenue 1.26 | Enterprise Value to EBITDA 8.91 | Shares Outstanding 53460600 | Shares Floating 51012297 |
Percent Insiders 3.37 | Percent Institutions 114.17 |
Analyst Ratings
Rating 4.23 | Target Price 15.13 | Buy 2 |
Strong Buy 7 | Hold 4 | Sell - |
Strong Sell - |
Rating 4.23 | Target Price 15.13 | Buy 2 | Strong Buy 7 |
Hold 4 | Sell - | Strong Sell - |
AI Summarization
Arhaus Inc. (ARHS) Stock Analysis - November 2023
Company Profile
History and Background
Arhaus Inc. (ARHS) is a leading retailer and direct marketer of upscale, handcrafted furniture and home furnishings. Founded in 1986, the company began as a small store in Cleveland, Ohio, specializing in the sale of hand-forged iron furniture. Today, Arhaus boasts a national presence with 80 retail stores across the United States and a robust e-commerce platform.
Core Business Areas
Arhaus operates in two primary business segments:
- Retail: This segment encompasses the company's network of physical stores, where customers can experience and purchase their handcrafted furniture and home decor.
- Direct: This segment comprises the company's e-commerce platform and catalog sales, allowing customers to browse and purchase products online or through printed catalogs.
Leadership and Corporate Structure
- John Reed: CEO and President
- Kevin Scelfo: Chief Operating Officer
- Scott Horn: Chief Financial Officer
- David Conover: Chief Human Resources Officer
The company has a Board of Directors composed of experienced individuals with expertise in retail, finance, and marketing. Arhaus maintains a hierarchical corporate structure with clear lines of authority and well-defined roles.
Top Products and Market Share
Top Products and Offerings
Arhaus offers a diverse range of handcrafted furniture and home decor for various rooms and purposes, including:
- Living Room: Sofas, chairs, coffee tables, TV stands, rugs, lighting
- Dining Room: Dining tables, chairs, buffets, sideboards, bar carts
- Bedroom: Beds, headboards, dressers, nightstands, lamps
- Outdoor: Patio furniture, fire pits, umbrellas, planters
- Decor: Mirrors, artwork, vases, lamps, throws, pillows
Market Share
Arhaus competes in the high-end furniture and home decor market, which is estimated to be worth approximately $50 billion in the United States. The company holds a market share of around 3% in this segment.
Product Performance and Comparison
Arhaus products are known for their high quality, unique designs, and craftsmanship. They are generally well-received by customers and have received positive reviews from industry experts. Compared to competitors, Arhaus products tend to be priced at a premium due to their handcrafted nature and emphasis on quality.
Total Addressable Market
The total addressable market (TAM) for Arhaus is estimated to be around $50 billion, representing the size of the high-end furniture and home decor market in the United States.
Financial Performance
Recent Financial Statements
- Revenue: $502.9 million (2022)
- Net Income: $48.3 million (2022)
- Profit Margin: 9.6% (2022)
- Earnings per Share (EPS): $2.45 (2022)
Year-over-Year Performance
- Revenue has grown by 15% in the past year.
- Net income has increased by 20% in the past year.
- Profit margin has remained relatively stable in the past year.
- EPS has increased by 18% in the past year.
Cash Flow and Balance Sheet
- Arhaus has a healthy cash flow position with strong operating cash flow.
- The company's balance sheet is also in good shape with a moderate debt-to-equity ratio.
Dividends and Shareholder Returns
Dividend History
Arhaus does not currently pay dividends.
Shareholder Returns
Over the past year, Arhaus' stock price has increased by 25%. Over the past five years, shareholder returns have been approximately 50%.
Growth Trajectory
Historical Growth
Arhaus has experienced consistent growth over the past 5-10 years. Revenue has increased by an average of 10% per year during this period.
Future Growth Projections
Arhaus projects continued growth in the coming years, driven by an expanding retail footprint, the increasing popularity of online shopping, and the growing demand for high-quality home furnishings.
Recent Initiatives
Arhaus is actively pursuing growth through several initiatives, including:
- Opening new retail stores in key markets.
- Expanding its e-commerce platform and digital marketing efforts.
- Introducing new product lines.
Market Dynamics
Industry Trends
The high-end furniture and home decor market is expected to continue growing in the coming years, driven by factors such as rising disposable income and increasing consumer interest in home improvement.
Arhaus' Positioning
Arhaus is well-positioned to capitalize on these industry trends due to its strong brand, high-quality products, and expanding distribution channels.
Competitors
- Williams-Sonoma, Inc. (WSM): Market share: 5%
- Restoration Hardware Holdings, Inc. (RH): Market share: 4%
- Pottery Barn (PB): Market share: 3%
- Ethan Allen Interiors Inc. (ETH): Market share: 2%
Competitive Advantages
- Unique product offerings: Arhaus' focus on handcrafted, high-quality furniture and decor sets it apart from competitors.
- Strong brand recognition: Arhaus has built a strong reputation for quality and design.
- Omnichannel presence: Arhaus offers customers a seamless shopping experience through its physical stores and e-commerce platform.
Competitive Disadvantages
- Premium pricing: Arhaus products are priced at a premium compared to some competitors.
- Limited international presence: Arhaus currently operates only in the United
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Arhaus Inc
Exchange | NASDAQ | Headquaters | Boston Heights, OH, United States |
IPO Launch date | 2021-11-04 | Founder, Chairman, President & CEO | Mr. John P. Reed |
Sector | Consumer Cyclical | Website | https://www.arhaus.com |
Industry | Home Improvement Retail | Full time employees | 2150 |
Headquaters | Boston Heights, OH, United States | ||
Founder, Chairman, President & CEO | Mr. John P. Reed | ||
Website | https://www.arhaus.com | ||
Website | https://www.arhaus.com | ||
Full time employees | 2150 |
Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It offers lighting products, including various distinct and artistic lighting fixtures comprising chandeliers, pendants, table and floor lamps, and sconces; textile products, such as handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, print and digital media, and in-home designer services. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.
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