RCI Hospitality Holdings (RICK) AI Stock Analysis

• Market Cap: $210.34M
• Dividend Yield: 1.21%
• Average Volume (3M): 83.37K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.89
• Revenue Growth: -5.34%
• EPS Growth: 256.61%
• Country: US
• Employees: 3,613
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 8,720,461
• 10 Day Avg. Volume: 72,252
• 30 Day Avg. Volume: 83,366
• PEG Ratio: -1.53
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 13.17
• Enterprise Value/Market Cap: 2.18
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 2.83
• Enterprise Value/Ebitda: 9.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $28.00 ▲(13.68% Upside)

RCI Hospitality Holdings shows strong operational efficiency and cash flow management, with a reasonable valuation. However, the stock is facing bearish technical indicators and challenges in revenue growth, which weigh on the overall score. The company's strategic initiatives and focus on profitability provide some optimism for future performance.

Positive Factors

Strong Cash Flow Management

Effective cash flow management ensures RCI can fund operations, acquisitions, and shareholder returns, supporting long-term financial health.

Improved Leverage

Reduced leverage decreases financial risk, enhancing RCI's ability to invest in growth opportunities and withstand economic fluctuations.

Strategic Acquisitions

Strategic acquisitions expand RCI's market presence and revenue base, aligning with long-term growth objectives in the nightclub sector.

Negative Factors

Revenue Decline

Declining revenues indicate potential challenges in market demand or operational efficiency, which could impact long-term growth prospects.

Challenges in Bombshells Segment

Persistent challenges in the Bombshells segment highlight operational inefficiencies, potentially affecting overall profitability and growth.

High Insurance Reserves

High insurance reserves increase noncash expenses, potentially straining financial resources and affecting profitability over the long term.

RCI Hospitality Holdings Business Overview & Revenue Model

Company Description

RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. The company operates through Nightclubs, Bombshells, and Other segments. It owns and/or operates upscale adult nightclubs serving primarily businessmen and professionals under the Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett's Cabaret, Temptations Adult Cabaret, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, and Kappa Men's Club. The company also operates restaurants and sports bars under the Bombshells Restaurant & Bar brand, as well as a dance club under the Studio 80 brand. In addition, it owns two national industry trade publications serving the adult nightclubs industry and the adult retail products industry; a national industry convention and tradeshow; and two national industry award shows, as well as approximately a dozen industry and social media Websites. Further, RCI Hospitality Holdings, Inc. holds license to sell Robust Energy Drink in the United States. The company was formerly known as Rick's Cabaret International, Inc. and changed its name to RCI Hospitality Holdings, Inc. in August 2014. RCI Hospitality Holdings, Inc. was founded in 1983 and is based in Houston, Texas.

How the Company Makes Money

RCI Hospitality Holdings generates revenue primarily through the operation of its nightclubs and restaurants, which include admissions, food and beverage sales, and private events. The company also earns income from the sale of merchandise and through partnerships with various entertainment and hospitality vendors. Significant revenue streams include cover charges at their venues, drink sales, and special event hosting, which contribute to a robust earnings model. Additionally, RCI's investment in the acquisition of new locations and properties enhances its market presence and revenue potential, positioning the company for growth in the competitive adult entertainment sector.

RCI Hospitality Holdings Financial Statement Overview

Summary

RCI Hospitality Holdings exhibits strong operational efficiency and cash flow management, with significant improvements in leverage. However, challenges in revenue growth and net profitability remain areas for improvement.

Income Statement

RCI Hospitality Holdings shows a strong gross profit margin of 86.8% in TTM, indicating efficient cost management. However, the net profit margin is relatively low at 5.9%, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, suggesting potential market or operational challenges. The EBIT and EBITDA margins are healthy, indicating good operational efficiency.

Balance Sheet

The company has significantly improved its debt-to-equity ratio to 0.19 in TTM, showcasing reduced leverage and financial risk. However, the return on equity is modest at 6.2%, indicating limited profitability from shareholder investments. The equity ratio of 45.1% suggests a balanced capital structure.

Cash Flow

RCI Hospitality Holdings demonstrates strong cash flow management with a free cash flow growth rate of 24.6% in TTM. The operating cash flow to net income ratio is slightly above 1, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong, suggesting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	281.74M	295.60M	293.79M	267.62M	195.26M	132.33M
Gross Profit	161.66M	170.44M	175.29M	163.16M	114.58M	73.82M
EBITDA	50.87M	34.68M	67.02M	84.47M	52.37M	11.84M
Net Income	16.56M	3.01M	29.25M	46.04M	30.34M	-6.08M
Balance Sheet
Total Assets	597.41M	584.36M	610.88M	530.74M	364.62M	360.93M
Cash, Cash Equivalents and Short-Term Investments	29.35M	32.35M	21.02M	35.98M	35.69M	15.61M
Total Debt	272.68M	272.25M	277.90M	241.26M	151.10M	168.50M
Total Liabilities	328.11M	321.25M	329.56M	288.98M	185.40M	208.63M
Stockholders Equity	269.55M	263.36M	281.58M	241.27M	179.82M	152.72M
Cash Flow
Free Cash Flow	33.66M	31.28M	18.75M	40.51M	28.48M	9.90M
Operating Cash Flow	51.34M	55.88M	59.13M	64.51M	41.99M	15.63M
Investing Cash Flow	-26.01M	-21.02M	-64.82M	-67.80M	-6.81M	-994.00K
Financing Cash Flow	-30.67M	-23.54M	-9.26M	3.58M	-15.10M	-13.13M

RCI Hospitality Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RICK, the sentiment is Negative. The current price of 24.63 is below the 20-day moving average (MA) of 24.82, above the 50-day MA of 24.60, and below the 200-day MA of 32.67, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 16.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RICK.

RCI Hospitality Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BJRI	71 Outperform	$873.71M	31.20	8.44%	―	3.85%	7.57%
RICK	62 Neutral	$210.34M	12.94	―	1.21%	-5.34%	256.61%
BDL	62 Neutral	$62.45M	12.41	7.97%	1.89%	8.99%	49.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
STKS	48 Neutral	$68.43M	-0.56	-51.90%	―	51.57%	-367.14%
CBRL	45 Neutral	$657.12M	39.58	3.89%	3.54%	-1.61%	-58.09%
TWNP	38 Underperform	$21.22M	-0.22	―	―	-4.93%	-39.52%

RCI Hospitality Holdings Corporate Events

RCI Hospitality Announces Leadership Changes with Interim Appointments

On November 25, 2025, RCI Hospitality Holdings announced that Eric Langan and Bradley Chhay would step down from their roles as President and CEO, and CFO, respectively, effective November 28, 2025. Travis Reese and Albert Molina were appointed as interim replacements. Langan and Chhay will continue to advise the company on strategic transactions and financial matters. Reese has been with the company since 1999, contributing to technology and concept development, while Molina has extensive experience in financial reporting and accounting. The changes are not expected to impact the compensation of the new interim executives.

The most recent analyst rating on (RICK) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on RCI Hospitality Holdings stock, see the RICK Stock Forecast page.

RCI Hospitality Stock Repurchase Agreement with ADW Capital

On November 21, 2025, RCI Hospitality Holdings, Inc. entered into a Stock Repurchase Agreement with ADW Capital Partners, L.P., purchasing 821,000 shares for $30 million. The payment included $8 million in cash and a $22 million promissory note with a 12% annual interest rate, payable over two years. Centennial Bank consented to this additional indebtedness and temporarily adjusted RCI’s debt service coverage requirement, reducing it from 1.40X to 1.25X until June 30, 2026.

The most recent analyst rating on (RICK) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on RCI Hospitality Holdings stock, see the RICK Stock Forecast page.