DCF Tool

RICK

RCI Hospitality Holdings Inc – Theater Companies and Dinner Theaters
rci hospitality holdings, inc., formerly rick's cabaret international, inc., operates upscale gentlemen's clubs and restaurants. subsidiary activities include websites and a media division. founded in 1983, rick’s cabaret pioneered in the creation of elegant gentlemen’s clubs featuring beautiful topless entertainers and high quality restaurant service. rick’s cabaret went public through an ipo in 1995 and is listed on the nasdaq global market under the symbol rick. options in rick are traded on the chicago board of options exchange (cboe). there are currently 46 nightclubs and restaurants nationwide in the rci hospitality holdings group. investors are attracted by strong cash flow, consistent profitability, effective internal financial controls developed by management, local laws that create high barriers to entry by potential competitors, and execution of a roll-up strategy in the consolidating gentlemen’s club industry. in recent years the company has acquired nightclubs in major
Analysis Results
Intrinsic Value $80.88
Latest Price $55.64
Relative Value 31% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2024 33.3 30.8
2025 38.0 32.5
2026 43.4 34.3
2027 49.5 36.2
2028 56.5 38.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 936 million. This corresponds to a present value of 585 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 172 million. Adding in the terminal value gives a total present value of 757 million.

There are presently 9.36 million outstanding shares, so the intrinsic value per share is 80.88.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 37,473,000
Current Cash 21,023,000
Current Liabilities 47,982,000
Current Debt 22,843,000
Non-Cash Working Capital (NCWC) -8,689,000
Change in NCWC -4,265,000
EBIT 67,113,000
Tax Provision 6,846,000
Depreciation and Amortization 15,151,000
Capital Expenditure -40,384,000
Unlevered Free Cash Flow 24,833,171
Current Assets 51,161,000
Current Cash 35,980,000
Current Liabilities 31,501,000
Current Debt 11,896,000
Non-Cash Working Capital (NCWC) -4,424,000
Change in NCWC -5,097,000
EBIT 71,926,000
Tax Provision 14,071,000
Depreciation and Amortization 12,391,000
Capital Expenditure -24,003,000
Unlevered Free Cash Flow 38,385,902
Current Assets 52,950,000
Current Cash 35,686,000
Current Liabilities 23,025,000
Current Debt 6,434,000
Non-Cash Working Capital (NCWC) 673,000
Change in NCWC 5,845,000
EBIT 51,734,000
Tax Provision 3,989,000
Depreciation and Amortization 8,238,000
Capital Expenditure -13,511,000
Unlevered Free Cash Flow 46,261,097
Current Assets 31,433,000
Current Cash 15,605,000
Current Liabilities 37,304,000
Current Debt 16,304,000
Non-Cash Working Capital (NCWC) -5,172,000
Change in NCWC -7,392,000
EBIT 13,294,000
Tax Provision -493,000
Depreciation and Amortization 8,836,000
Capital Expenditure -5,736,000
Unlevered Free Cash Flow 9,002,000
Current Assets 34,771,000
Current Cash 14,097,000
Current Liabilities 34,208,000
Current Debt 15,754,000
Non-Cash Working Capital (NCWC) 2,220,000
Change in NCWC -2,058,000
EBIT 37,321,000
Tax Provision 4,863,000
Depreciation and Amortization 9,072,000
Capital Expenditure -20,708,000
Unlevered Free Cash Flow 16,123,919
Current Assets 36,802,000
Current Cash 17,726,000
Current Liabilities 33,845,000
Current Debt 19,047,000
Non-Cash Working Capital (NCWC) 4,278,000
Change in NCWC 1,629,000
EBIT 36,746,000
Tax Provision -3,118,000
Depreciation and Amortization 7,722,000
Capital Expenditure -25,263,000
Unlevered Free Cash Flow 20,834,000
Current Assets 26,242,000
Current Cash 9,922,000
Current Liabilities 31,111,000
Current Debt 17,440,000
Non-Cash Working Capital (NCWC) 2,649,000
Change in NCWC -904,000
EBIT 30,451,000
Tax Provision 6,359,000
Depreciation and Amortization 6,920,000
Capital Expenditure -11,249,000
Unlevered Free Cash Flow 11,992,270
Current Assets 29,387,000
Current Cash 11,327,000
Current Liabilities 24,457,000
Current Debt 9,950,000
Non-Cash Working Capital (NCWC) 3,553,000
Change in NCWC 4,733,000
EBIT 26,609,000
Tax Provision 2,657,000
Depreciation and Amortization 7,173,000
Capital Expenditure -28,148,000
Unlevered Free Cash Flow 4,927,274
Current Assets 20,608,000
Current Cash 8,634,000
Current Liabilities 22,854,000
Current Debt 9,700,000
Non-Cash Working Capital (NCWC) -1,180,000
Change in NCWC 12,908,000
EBIT 26,908,000
Tax Provision 5,164,000
Depreciation and Amortization 6,894,000
Capital Expenditure -19,259,000
Unlevered Free Cash Flow 17,633,087
Current Assets 23,351,000
Current Cash 10,560,000
Current Liabilities 39,194,000
Current Debt 12,315,000
Non-Cash Working Capital (NCWC) -14,088,000
Change in NCWC -3,442,000
EBIT 25,144,000
Tax Provision 5,916,000
Depreciation and Amortization 6,316,000
Capital Expenditure -21,359,000
Unlevered Free Cash Flow -2,136,122
Current Assets 20,681,000
Current Cash 11,211,000
Current Liabilities 28,946,000
Current Debt 8,830,000
Non-Cash Working Capital (NCWC) -10,646,000
Change in NCWC -2,525,000
EBIT 22,129,000
Tax Provision 5,501,000
Depreciation and Amortization 5,314,000
Capital Expenditure -9,675,000
Unlevered Free Cash Flow 7,152,369
Current Assets 14,708,000
Current Cash 6,579,000
Current Liabilities 22,853,000
Current Debt 6,603,000
Non-Cash Working Capital (NCWC) -8,121,000
Change in NCWC -5,370,000
EBIT 16,845,000
Tax Provision 4,374,000
Depreciation and Amortization 4,921,000
Capital Expenditure -6,898,000
Unlevered Free Cash Flow 3,525,234

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