ARHS

Arhaus, Inc.

Fundamental data last updated:June 4, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Home Improvement

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/06/2026

Business Summary

Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market. 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 and modular storage, etc.; and outdoor products include outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It also offers lighting products, such as various distinct and artistic lighting fixtures, including chandeliers, pendants, table and floor lamps, and sconces; textile products comprising 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, catalog, and in-home designer services. As of December 31, 2021, it operated through a network of 71 traditional showrooms, 5 Design Studios, and 3 Outlets, as well as 58 showrooms with in-home interior designers. The company was founded in 1986 and is headquartered in Boston Heights, Ohio.

 


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VALUATION

P/E

14.97

Market Cap ($M USD)

$970.96M

Forward P/E

8.37

PEG

0.11

PRICE TO SALES

0.70

PRICE TO BOOK

2.59

EV / EBITDA

7.66

5-Year Average P/E

Free Cash Flow Yield

1.39%

DCF Value

$10.43

Graham Number

$5.22

Price to FCF

71.92

EV to FCF

103.23

Earnings Yield

6.68%

FCF Yield

1.39%

DIVIDEND

Yield

5.10%

Annual Payout

$0.35

Payout Ratio

76.83%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.46

Next Year EPS Growth Estimate

$0.82

Next Year Revenue Growth Estimate

$199.45B

Return on Equity (ROE)

16.39%

FREE CASH FLOW

Operating Margin

6.20%

Debt-to-Equity

1.39

Piotroski F-Score

4

Altman Z-Score

2.05

Return on Invested Capital (ROIC)

9.41%

Current Ratio

1.25

Quick Ratio

0.46

Net Debt to EBITDA

2.32

Interest Coverage

33.57

Gross Profit margin

38.69%

FCF PER SHARE

$0.10

REVENUE PER SHARE

$9.80

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Gainseekers Quantitative Analysis

Summary

The market appears to be undervaluing Arhaus, Inc., with its snapshot price trading below the DCF value and Graham Number. The Forward P/E of 7.93 suggests a bargain relative to its earnings potential, while the Earnings Yield of 7.04% indicates a decent return for investors. However, the Altman Z-score of 2.03 raises concerns about financial stability, hinting at moderate distress. Despite these risks, the stock’s valuation metrics suggest a potential opportunity for value investors willing to stomach some volatility.

AI Exposure / Tech Reliance

Operating in the Home Improvement industry, Arhaus is positioned to leverage AI in optimizing supply chains and enhancing customer experiences through personalized marketing. As the sector increasingly integrates smart home technologies, Arhaus could capitalize on these trends to stay competitive. However, the company's adaptability will depend on its ability to innovate and integrate these technologies effectively.

The Bull Case

For GARP investors, Arhaus presents a compelling case with a robust ROIC of 9.39%, indicating efficient capital use. The FCF Yield, although low, suggests potential for improvement, while the Piotroski F-Score of 4 highlights moderate financial health. With a Gross Profit Margin of 38.69%, the company demonstrates strong pricing power, which could drive future profitability. These metrics collectively paint a picture of a company with solid fundamentals and room for growth.

The Bear Case

Despite its strengths, Arhaus faces significant structural risks. The Price to FCF ratio of 68.20 and an EV to FCF of 99.51 indicate poor cash flow generation relative to its valuation. The Quick Ratio of 0.46 suggests liquidity concerns, potentially limiting operational flexibility. Additionally, the stock's proximity to its 52-week high raises questions about its current valuation being stretched, posing a risk for investors seeking immediate upside.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$9.79

Institutional Ownership %

1-Year Beta

2.42

Insider Buying % (6 Mo)

Distance to 52-Week High

89.21%

Distance to 52-Week Low

18.80%

EARNINGS SURPRISE %

0.00%

50-DAY SMA

$6.82

200-DAY SMA

$9.47

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.