RCI HOSPIT HOLDI : Analyse de RICK'S (à lire)

jdestail

31 déc. 2008 •17:45

Rick's results were solid. For all of fiscal 2008, which ended in September, revenue soared 87% to $32.01 million. Earnings grew even faster, surging 151% to $7.7 million or $0.91 a share.

So how did that fourth quarter turn out? Well, revenue more than doubled, but earnings clocked in at just $0.15 a share. Rick's profit was lower than last year's $0.18-a-share showing and well shy of the $0.23 analysts expected.

Mr. Market isn't going to like the miss, but the stock has already shed 83% of its value this year. The stock is now trading at just five times trailing earnings, and the company remains firmly profitable.

The revenue is clearly inflated by acquisitions and new club openings, but comps rose a healthy 14.6% during the fiscal year.

However, at these prices, it's hard not to warm up to Rick's Cabaret if it can jiggle through your morality filter. The company's long-term debt may have tripled over the past year, but it's at a manageable level given the company's earnings power.

As long as comps hold up and the company can get its bottom line pointing in the right direction, Rick's Cabaret is unlikely to stay in the single digits for long.