RCI Hospitality Holdings, Inc. (RICK) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

RCI Hospitality's EV/EBITDA of 9.8 is below its 5-year median of 11.4.

P/B below the industry

RCI Hospitality's price-to-book of 0.89 is below the Eating and Drinking Places median of 3.13.

Trading below fair value

The share price of $27.31 is below our fair value estimate of $48.88.

Margin of safety over 20%

The price is 44.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -37.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.0% over the last twelve months; the Eating and Drinking Places median is 5.9%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was -1.7% over the last twelve months and averaged 11.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 2.9%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

RCI Hospitality's return on equity of -1.7% is below the Eating and Drinking Places median of 7.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -1.5% over the last twelve months, against a 5-year average of 9.5%.

Net margin below the industry

RCI Hospitality's net margin of -1.5% is below the Eating and Drinking Places median of 1.9%.

High debt

Debt is 102% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 92.6% five years ago to 102%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 17.8% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.6 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.56 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.48; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

RCI Hospitality paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; RCI Hospitality yields 1.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 6.9% of free cash flow.