RCI Hospitality Holdings, Inc. (RICK)
Valuation Overview•Is RCI Hospitality Holdings, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 44/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
RICK demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company exhibits steady, low-single-digit revenue growth however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 12.3%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $68.7M | -5.5% | +1.5% | +16.1% | +7.5% | |
| EBITDA | $15.5M | — | -15.1% | — | — | |
| Net Income | -$326K | +259.1% | -38.3% | — | +1.6% | |
| EPS (Diluted) | $-0.04 | +272.7% | -37.0% | — | +3.3% | |
| Free Cash Flow | $12.2M | +11.5% | -4.9% | +28.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 55.2% | 58.1% | 58.8% | 58.3% |
| Operating Margin | 12.3% | 12.3% | 16.7% | 15.2% |
| Net Margin | -2.3% | 4.9% | 9.5% | 8.1% |
| FCF Margin | 14.0% | 9.8% | 11.8% | 7.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $-0.04 | — | ||
| Q2'26 | — | $-0.57 | — | ||
| Q1'26 | — | $-0.63 | — | ||
| Q1'26 | — | — | — | ||
| Q4'25 | — | $0.03 | — | ||
| Q3'25 | $1.24 | $0.46 | -62.9% | ||
| Q2'25 | $0.31 | $0.36 | +16.1% | ||
| Q1'25 | $0.52 | $1.01 | +94.2% |
Total return is -27.7% (1Y), lagging the benchmark by -52.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +21.3% | +12.0% | — |
| 1Y | -27.7% | -52.6% | +0.8% |
| 3YCAGR | -27.7% | -47.9% | +1.1% |
| 5YCAGR | -14.2% | -27.8% | +1.9% |
| 10YCAGR | +11.2% | -2.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about RCI Hospitality Holdings, Inc. (RICK) valuation, health, and returns.
Based on peer relative multiples, RCI Hospitality Holdings, Inc. appears Limited: Slightly cheap versus peers compared to industry peers.
RCI Hospitality Holdings, Inc. has multiple valuation anchors: Peer Relative Fair Value: $32.72 | Wall Street Analyst Target: $98.00 (implying +246.7% upside). A convergence of these signals offers higher conviction.
RCI Hospitality Holdings, Inc. displays fair financial health with a composite quality score of 44/100, supported by a Altman Z-Score of 1.0 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 5.5%.
RCI Hospitality Holdings, Inc. pays a 1.0% dividend yield, covered by a 23% payout ratio with 7 years of growth, supplemented by a 5.5% buyback yield.
RCI Hospitality Holdings, Inc.'s current growth trajectory is Decelerating. The company achieved -5.5% 1Y revenue growth and +272.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +1.5%.
Wall Street consensus is Buy based on 3 analysts, beating EPS expectations in 33% of recent quarters with a -1-quarter streak. The consensus price target represents a +246.7% change from current levels.
Investment risks for RCI Hospitality Holdings, Inc. include: -49.3% 1-year max drawdown, high beta (1.33x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 1.33x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.