RCI Hospitality Holdings, Inc. (NASDAQ:RICK) is a prominent player in the leisure and recreation services industry. The company operates a range of adult nightclubs and restaurants across the United States. RICK competes with other entertainment and hospitality businesses, striving to deliver unique experiences to its customers.
On February 13, 2025, RICK reported earnings per share (EPS) of $0.80, surpassing the estimated $0.52. This performance aligns with the company's recent trend of exceeding expectations.
RICK's revenue for the quarter was approximately $71.5 million, slightly above the estimated $71.1 million. This achievement is consistent with the company's history of outperforming revenue estimates. According to Zacks, RICK generated $71.48 million in revenue for the quarter ending December 2024, exceeding expectations by 0.51%. However, this figure reflects a slight decrease from the $73.91 million reported in the same period the previous year.
The company's financial metrics provide further insight into its valuation. RICK's price-to-earnings (P/E) ratio is approximately 93.51, indicating that investors are willing to pay $93.51 for every dollar of earnings. The price-to-sales ratio stands at about 1.52, suggesting the market values the company at 1.52 times its annual sales. Additionally, the enterprise value to sales ratio is around 1.57, reflecting the company's total valuation relative to its sales.
RICK maintains a conservative capital structure, with a debt-to-equity ratio of 0.18, indicating limited reliance on debt. The current ratio of approximately 1.02 suggests a stable liquidity position, as the company has a slightly higher level of current assets compared to its current liabilities. This financial stability supports RICK's ability to continue delivering strong performance in the leisure and recreation services industry.
