Soho House & Co (SHCO) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 7.89%
• EPS Growth: 67.07%
• Country: US
• Employees: 8,038
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Travel Lodging
• EPS (TTM): 0.13
• Shares Outstanding: 53,604,733
• 10 Day Avg. Volume: 988,925
• 30 Day Avg. Volume: 1,736,167
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.15
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: 22.67
• 1Y Price Target: $9.00
• Price Target Upside: 1.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $9.00 ▲(1.69% Upside)

The overall stock score is primarily influenced by the positive corporate event of a merger, which offers a significant premium to shareholders and is supported by major financial backers. However, financial performance and valuation concerns, including high leverage and negative equity, weigh down the score. Technical analysis shows bullish momentum, but caution is advised due to overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market reach and enhance its service offerings, supporting long-term business sustainability.

Merger Agreement

The merger provides strategic growth opportunities and financial backing, potentially enhancing operational capabilities and market positioning in the long term.

CFO Appointment

The appointment of an experienced CFO can strengthen financial management and strategic planning, crucial for navigating post-merger integration and future growth.

Negative Factors

High Leverage

High leverage poses risks to financial stability, potentially limiting the company's ability to invest in growth and weather economic downturns.

Negative Profitability

Sustained negative profitability can hinder the company's ability to reinvest in its operations and maintain competitive advantages, impacting long-term viability.

Negative Equity Position

A negative equity position reflects a precarious financial state, which can constrain strategic options and deter potential investors or partners.

Soho House & Co Business Overview & Revenue Model

Company Description

Soho House & Co (SHCO) is a global private members' club organization and hospitality company that operates exclusive clubs, hotels, and restaurants in key cities around the world. Founded in 1995 in London, the company caters primarily to individuals in the creative industries, offering a unique blend of luxury accommodations, dining, and social spaces designed to foster community and collaboration among its members. With a commitment to maintaining a high standard of service and exclusivity, Soho House & Co has expanded its footprint to include numerous locations globally, providing tailored experiences for its discerning clientele.

How the Company Makes Money

Soho House & Co generates revenue through multiple streams, primarily centered around its membership model. The company charges annual membership fees for access to its exclusive clubs, which serve as a significant source of recurring income. In addition to membership fees, Soho House & Co earns money through its hospitality operations, including hotel accommodations, dining services, and events hosted at its venues. The company also benefits from ancillary services such as retail offerings and branded merchandise. Strategic partnerships and collaborations with brands in the luxury and lifestyle sectors further enhance its revenue potential by creating unique experiences and offerings for members. The combination of these diverse revenue streams allows Soho House & Co to maintain its position as a leader in the private members' club and hospitality industry.

Soho House & Co Financial Statement Overview

Summary

Soho House & Co demonstrates some revenue growth and improvements in cash flow, but it faces significant challenges with profitability and financial stability. The high leverage and negative equity position pose substantial risks, while operational efficiency remains an area for improvement.

Income Statement

Soho House & Co shows a modest revenue growth rate of 2.01% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by a negative net profit margin of -4.67% and a declining gross profit margin from previous periods. The EBIT and EBITDA margins are positive but low, suggesting limited operational efficiency improvements.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative debt-to-equity ratio due to negative stockholders' equity, indicating high financial risk. The return on equity is positive but misleading due to negative equity. The equity ratio is also negative, reflecting a precarious financial position.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 17.76% TTM, which is a positive sign. However, the operating cash flow to net income ratio is low, and the free cash flow to net income ratio is modest, indicating challenges in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.20B	1.14B	972.21M	560.55M	384.38M
Gross Profit	497.00M	565.47M	546.52M	97.02M	357.71M	164.34M
EBITDA	164.07M	34.80M	85.98M	-43.22M	-113.95M	-88.46M
Net Income	-58.46M	-162.97M	-117.95M	-220.58M	-265.39M	-228.46M
Balance Sheet
Total Assets	2.59B	2.44B	2.54B	2.47B	2.38B	2.10B
Cash, Cash Equivalents and Short-Term Investments	150.31M	155.09M	162.98M	190.04M	213.71M	59.97M
Total Debt	1.52B	2.34B	2.31B	2.12B	1.90B	2.03B
Total Liabilities	2.94B	2.77B	2.70B	2.48B	2.20B	2.48B
Stockholders Equity	-346.26M	-335.06M	-174.89M	-22.44M	176.13M	-432.42M
Cash Flow
Free Cash Flow	33.81M	7.75M	-36.89M	-80.72M	-230.50M	-177.67M
Operating Cash Flow	108.52M	89.68M	46.99M	14.68M	-127.42M	-38.23M
Investing Cash Flow	-89.20M	-71.24M	-82.36M	-94.14M	-119.14M	-139.87M
Financing Cash Flow	-21.34M	-19.91M	4.91M	52.84M	408.16M	179.70M

Soho House & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHCO, the sentiment is Positive. The current price of 8.85 is above the 20-day moving average (MA) of 8.72, above the 50-day MA of 7.63, and above the 200-day MA of 6.81, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 75.16 is Negative, neither overbought nor oversold. The STOCH value of 34.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHCO.

Soho House & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATAT	77 Outperform	$5.53B	28.55	46.30%	3.23%	37.98%	32.17%
HTHT	77 Outperform	$11.16B	23.09	30.38%	7.01%	4.43%	1.61%
WH	74 Outperform	$6.43B	19.74	56.16%	1.79%	3.65%	38.50%
H	69 Neutral	$13.62B	33.64	11.66%	0.42%	0.74%	-54.42%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
CHH	59 Neutral	$5.33B	17.26	-661.94%	1.02%	1.67%	35.34%
SHCO	54 Neutral	$1.73B	―	49.70%	―	7.89%	67.07%

Soho House & Co Corporate Events

Soho House & Co Appoints New CFO Amid Merger

On August 15, 2025, Soho House & Co entered into a merger agreement with EH Parent LLC and affiliates, with the company continuing as the surviving corporation. The merger, recommended by a special committee, offers $9.00 per share to stockholders, representing an 83% premium over the unaffected share price. The transaction, supported by significant shareholders and financial backers like Apollo and Goldman Sachs, aims to take the company private, delist it from the NYSE, and leverage new investments for growth. Additionally, on August 18, 2025, Neil Thomson was appointed as the new CFO, succeeding Thomas Allen, to lead the company’s financial strategies post-merger.

Soho House & Co Holds Virtual Annual Meeting

On June 18, 2025, Soho House & Co Inc. held its Annual Meeting of Stockholders virtually, where two key proposals were addressed. The election of directors resulted in Ron Burkle, Nick Jones, Andrew Carnie, and Richard Caring being elected as Class I directors until 2028, while Alice Delahunt and Dasha Zhukova were elected as Class II directors until 2026. Additionally, the stockholders ratified the appointment of BDO LLP as the independent registered public accounting firm for the 2025 fiscal year.