(ARHS) Arhaus - Overview
Sector: Consumer Cyclical | Industry: Specialty Retail | Exchange: NASDAQ (USA) | Market Cap: 875m USD | Total Return: -23.2% in 12m
Avg Turnover: 9.20M
EPS Trend: -47.2%
Qual. Beats: 0
Rev. Trend: 74.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Arhaus, Inc. (ARHS) is a premium home furnishings retailer headquartered in Boston Heights, Ohio. Founded in 1986, the company designs and sells high-end furniture and decor across multiple categories, including living, dining, bedroom, home office, and outdoor spaces. Its product suite extends to lighting, textiles, bath vanities, and decorative accessories.
The company operates an omnichannel business model, integrating physical showrooms with e-commerce, catalogs, and specialized services for interior designers. In the premium home furnishings sector, companies often utilize vertically integrated supply chains and exclusive artisan partnerships to justify higher price points and maintain brand exclusivity. This model relies heavily on a high-touch customer experience where physical showrooms serve as design hubs to drive both in-person and digital sales.
Investors can evaluate the companys valuation metrics and growth trajectory further on ValueRay. Arhaus continues to expand its footprint through a mix of traditional showrooms and Design Studios to capture market share in the luxury domestic retail segment.
- Showroom expansion strategy drives physical footprint growth and market share gains
- High interest rates and housing market slowdown reduce luxury furniture demand
- Vertical integration and domestic manufacturing capacity stabilize gross profit margins
- Omni-channel sales growth relies on high-net-worth consumer discretionary spending resilience
- Supply chain optimization and distribution center efficiency impact operational leverage
| Net Income: 64.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -2.79 > 1.0 |
| NWC/Revenue: 8.35% < 20% (prev 8.97%; Δ -0.61% < -1%) |
| CFO/TA 0.06 > 3% & CFO 80.6m > Net Income 64.6m |
| Net Debt (422.6m) to EBITDA (181.8m): 2.32 < 3 |
| Current Ratio: 1.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (141.7m) vs 12m ago 0.46% < -2% |
| Gross Margin: 38.69% > 18% (prev 0.39%; Δ 3.83k% > 0.5%) |
| Asset Turnover: 104.6% > 50% (prev 101.8%; Δ 2.84% > 0%) |
| Interest Coverage Ratio: 35.02 > 6 (EBITDA TTM 181.8m / Interest Expense TTM 2.55m) |
| A: 0.08 (Total Current Assets 581.8m - Total Current Liabilities 466.4m) / Total Assets 1.38b |
| B: 0.12 (Retained Earnings 162.2m / Total Assets 1.38b) |
| C: 0.07 (EBIT TTM 89.4m / Avg Total Assets 1.32b) |
| D: 0.16 (Book Value of Equity 162.2m / Total Liabilities 1.00b) |
| Altman-Z'' = 1.56 = BB |
| DSRI: 0.38 (Receivables 432k/1.05m, Revenue 1.38b/1.29b) |
| GMI: 1.01 (GM 38.69% / 38.98%) |
| AQI: 0.86 (AQ_t 0.02 / AQ_t-1 0.03) |
| SGI: 1.07 (Revenue 1.38b / 1.29b) |
| TATA: -0.01 (NI 64.6m - CFO 80.6m) / TA 1.38b) |
| Beneish M = -3.57 (Cap -4..+1) = AAA |
As of May 27, 2026, the stock is trading at USD 6.44 with a total of 1,379,202 shares traded.
Over the past week, the price has changed by +9.71%,
over one month by -14.48%,
over three months by -27.03% and
over the past year by -23.21%.
Arhaus has received a consensus analysts rating of 3.69. Therefore, it is recommended to hold ARHS.
- StrongBuy: 4
- Buy: 1
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 8.9 | 38.8% |
P/E Trailing = 13.1596
P/E Forward = 15.2207
P/S = 0.6334
P/B = 2.2749
Revenue TTM = 1.38b USD
EBIT TTM = 89.4m USD
EBITDA TTM = 181.8m USD
Long Term Debt = 534.3m USD (estimated: total debt 599.7m - short term 65.4m)
Short Term Debt = 65.4m USD (from shortTermDebt, last quarter)
Debt = 599.7m USD (from shortLongTermDebtTotal, last quarter) (leases 599.7m already included)
Net Debt = 422.6m USD (calculated: Debt 599.7m - CCE 177.1m)
Enterprise Value = 1.30b USD (875.4m + Debt 599.7m - CCE 177.1m)
Interest Coverage Ratio = 35.02 (Ebit TTM 89.4m / Interest Expense TTM 2.55m)
EV/FCF = 96.15x (Enterprise Value 1.30b / FCF TTM 13.5m)
FCF Yield = 1.04% (FCF TTM 13.5m / Enterprise Value 1.30b)
FCF Margin = 0.98% (FCF TTM 13.5m / Revenue TTM 1.38b)
Net Margin = 4.67% (Net Income TTM 64.6m / Revenue TTM 1.38b)
Gross Margin = 38.69% ((Revenue TTM 1.38b - Cost of Revenue TTM 847.4m) / Revenue TTM)
Gross Margin QoQ = 36.41% (prev 38.15%)
Tobins Q-Ratio = 0.94 (Enterprise Value 1.30b / Total Assets 1.38b)
Interest Expense / Debt = 0.43% (Interest Expense 2.55m / Debt 599.7m)
Taxrate = 35.32% (1.21m / 3.44m)
NOPAT = 57.8m (EBIT 89.4m * (1 - 35.32%))
Current Ratio = 1.25 (Total Current Assets 581.8m / Total Current Liabilities 466.4m)
Debt / Equity = 1.61 (Debt 599.7m / totalStockholderEquity, last quarter 372.7m)
Debt / EBITDA = 2.32 (Net Debt 422.6m / EBITDA 181.8m)
Debt / FCF = 31.30 (Net Debt 422.6m / FCF TTM 13.5m)
Total Stockholder Equity = 394.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.89% (Net Income 64.6m / Total Assets 1.38b)
RoE = 16.39% (Net Income TTM 64.6m / Total Stockholder Equity 394.2m)
RoCE = 9.63% (EBIT 89.4m / Capital Employed (Equity 394.2m + L.T.Debt 534.3m))
RoIC = 7.23% (NOPAT 57.8m / Invested Capital 799.5m)
WACC = 6.63% (E(875.4m)/V(1.48b) * Re(10.98%) + D(599.7m)/V(1.48b) * Rd(0.43%) * (1-Tc(0.35)))
Discount Rate = 10.98% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 82.22 | Cagr: 0.45%
[DCF] Terminal Value 73.10% ; FCFF base≈27.2m ; Y1≈23.8m ; Y5≈19.3m
[DCF] Fair Price = N/A (negative equity: EV 309.3m - Net Debt 422.6m = -113.3m; debt exceeds intrinsic value)
EPS Correlation: -47.17 | EPS CAGR: -15.24% | SUE: 0.03 | # QB: 0
Revenue Correlation: 74.08 | Revenue CAGR: 2.69% | SUE: 0.04 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.16 | Chg30d=-29.29% | Revisions=-78% | Analysts=15
EPS next Quarter (2026-09-30): EPS=0.13 | Chg30d=+9.40% | Revisions=+60% | Analysts=15
EPS current Year (2026-12-31): EPS=0.48 | Chg30d=-6.38% | Revisions=-78% | GrowthEPS=-0.6% | GrowthRev=+4.8%
EPS next Year (2027-12-31): EPS=0.55 | Chg30d=-5.04% | Revisions=-44% | GrowthEPS=+16.0% | GrowthRev=+6.4%
[Analyst] Revisions Ratio: -78%