RICK - RCI Hospitality: Expanding Into New Markets
2024-04-10 01:45:45 ET
Summary
- RCI Hospitality Holdings has a share price that is currently undervalued at $55.83 versus a price target of $64.80 a share when considering its normal business operations.
- The company's two new casinos in Central City, CO, are expected to significantly add to RICK's revenue.
- With the addition of two new casinos, RCI Hospitality Holdings could have its share price target set somewhere between $72.83 and $88.03 a share.
I am recommending RCI Hospitality Holdings, Inc. ( RICK ) as a buy because I think that the share price is currently undervalued at $55.83 versus a price target of $64.80 a share when considering its normal business operations. I believe the stock could be worth substantially more than this once cashflows from RCI's two new casinos in Central City, CO begin to roll in. Right now, RCI is investing a lot of money into this new business venture and once these building start to bring in money it should greatly improve RCI's margins.
RCI Hospitality Holdings Business Model
Nightclubs
RCI Hospitality Holdings, Inc. makes most of its revenues from operating an assortment of adult nightclubs. According to RCI's latest 10-Q the company owned a total of 55 adult nightclubs and one dance club under various names including Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett's Cabaret, Diamond Cabaret, Cheetah Gentlemen's Club, PT's Showclub, Playmates Club, Country Rock Cabaret, Temptations Adult Cabaret, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, Heartbreakers Gentlemen's Club, Kappa Men's Club, Baby Dolls, and Chicas Locas. The nightclub segment made up approximately 80.6% of RCI's total revenues in 2023....
RCI Hospitality: Expanding Into New Markets