Soho House & Co Inc. (SHCO)
Valuation Overview•Is Soho House & Co Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Fragile underlying quality score of 36/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
SHCO struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is driving exceptional top-line expansion (29.0% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (1.4%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $370.8M | +6.0% | +29.0% | +13.4% | — | |
| EBITDA | $20.6M | — | — | — | — | |
| Net Income | -$18.7M | -38.2% | +15.0% | — | — | |
| EPS (Diluted) | $-0.10 | -38.3% | — | — | — | |
| Free Cash Flow | -$2.8M | +121.0% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 51.2% | 46.9% | 45.7% | 35.7% |
| Operating Margin | 1.4% | -7.8% | -19.4% | -15.1% |
| Net Margin | -6.0% | -15.6% | -30.7% | -27.1% |
| FCF Margin | 2.0% | -3.7% | -19.7% | -19.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'25Latest | $0.02 | $-0.10 | -600.0% | ||
| Q3'25 | $-0.08 | $0.13 | +262.5% | ||
| Q2'25 | $-0.14 | $0.04 | +128.6% | ||
| Q1'25 | $-0.07 | $-0.10 | -42.9% | ||
| Q4'24 | $-0.01 | $0.07 | +800.0% | ||
| Q3'24 | $-0.11 | $-0.17 | -54.5% | ||
| Q2'24 | $-0.22 | $-0.24 | -9.1% | ||
| Q1'24 | $-0.07 | $-0.10 | -42.9% |
Total return is +25.9% (1Y), outperforming the benchmark by +5.1%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +0.3% | -7.0% | — |
| 1Y | +25.9% | +5.1% | — |
| 3YCAGR | +14.2% | -5.2% | — |
| 5YCAGR | -6.6% | -18.1% | — |
| 10YCAGR | -3.4% | -17.1% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Soho House & Co Inc. (SHCO) valuation, health, and returns.
Based on peer relative multiples, Soho House & Co Inc. appears Expensive versus peers compared to industry peers.
Soho House & Co Inc. has multiple valuation anchors: Peer Relative Fair Value: $2.84. A convergence of these signals offers higher conviction.
Soho House & Co Inc. displays weak financial health with a composite quality score of 36/100, supported by a Altman Z-Score of -1.5 (distress zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -2.7%.
Soho House & Co Inc. returns capital via buybacks instead of dividends, carrying a 3.6% buyback yield and reducing outstanding shares by -0.2% in the last 12 months.
Soho House & Co Inc.'s current growth trajectory is Decelerating. The company achieved +6.0% 1Y revenue growth and -38.3% 1Y EPS growth, compared to its 3Y revenue CAGR of +29.0%.
Wall Street consensus is Buy based on 8 analysts, beating EPS expectations in 50% of recent quarters with a -1-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Soho House & Co Inc. include: -18.3% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.31x.
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.