RCI Hospitality Holdings, Inc. (RICK) AI Stock Analysis

RCI Hospitality Holdings, Inc. operates within the hospitality sector in the United States through three primary segments: Nightclubs, Bombshells, and Other. The Nightclubs segment manages upscale adult entertainment venues catering to businessmen and professionals, including Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, and Scarlett's Cabaret. The Bombshells segment includes company-owned and franchised restaurant and bar locations offering dining, sports bars, and entertainment. Additionally, the company owns industry-specific conventions, trade publications, award shows, and websites, and licenses Robust Energy Drink in the United States.

Between FY2021 and FY2025, RCI Hospitality's revenue expanded from $195.3M to $279.4M, representing a 5-year revenue CAGR of 16.1% from FY2020 to FY2025. Annual net income peaked at $46.0M in FY2022 before dropping to $3.0M in FY2024 and recovering to $10.8M in FY2025. In FY2025, revenue contracted 5.5% while operating margin stood at 13.0%. For the latest quarter ended June 30, 2026, quarterly revenue increased 3.9% year-over-year, and quarterly earnings rose 80.4%, bringing trailing twelve-month revenue to $284.4M with a net profit margin of -1.5%.

As of June 30, 2026, RCI Hospitality held $26.4M in cash and short-term investments against $268.3M in total debt, resulting in net debt of $241.9M. The company's current ratio stood at 0.56, while debt-to-equity reached 1.14 on $234.8M of shareholders' equity. In FY2025, operating cash flow was $49.4M and free cash flow reached $34.9M. The company deployed this cash toward $14.5M in capital expenditures, $11.9M in share buybacks, and $2.5M in dividends, reducing share count by 18.7% over 5 years.

RCI Hospitality trades at a forward P/E of 6.8x, compared to the median of 14.1x for its US-listed Consumer Cyclical peers. The stock's price-to-sales ratio is 0.7x, matching the peer median of 0.7x, while its EV/EBITDA of 13.3x is higher than the peer median of 11.1x. Over the past 1-year period, RICK declined 4.9% compared to a 16.8% gain for the S&P 500 (SPY). Over 5 years, the stock decreased 62.5% versus an 83.0% rise for SPY.

RCI Hospitality pays a quarterly dividend with an annual forward payout of $0.32, translating to a dividend yield of 1.25% based on the $25.67 close. The dividend payout ratio is 39.2%. The company has maintained consecutive annual dividend payments for 11 years, delivering a 5-year annualized dividend growth rate of 13.3%. Its last ex-dividend date was September 15, 2026.

Analysts have established a mean price target of $98.00 for RICK, representing a 281.8% upside relative to its last close of $25.67. For the next fiscal year, consensus models project revenue of $326.9M, representing 8.9% growth, with an EPS estimate of $0.00. Over the last four quarters, the company recorded 0 EPS beats.

This page is an AI-written research summary of RCI Hospitality Holdings, Inc. (RICK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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