RUTH'S HOSPITALITY GROUP INC (RUTH) Stock Fundamental Analysis
NASDAQ:RUTH - Nasdaq - US7833321091 - Common Stock - Currency: USD
RUTH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. Both the profitability and the financial health of RUTH get a neutral evaluation. Nothing too spectacular is happening here. RUTH has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RUTH was profitable.
In the past year RUTH had a positive cash flow from operations.
Of the past 5 years RUTH 4 years were profitable.
RUTH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.89%, RUTH belongs to the top of the industry, outperforming 80.14% of the companies in the same industry.
RUTH has a better Return On Equity (28.32%) than 82.27% of its industry peers.
With an excellent Return On Invested Capital value of 12.46%, RUTH belongs to the best of the industry, outperforming 82.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 28.32% | ||
| ROIC | 12.46% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 7.66%, RUTH is in the better half of the industry, outperforming 68.79% of the companies in the same industry.
RUTH's Profit Margin has been stable in the last couple of years.
RUTH has a Operating Margin of 10.40%. This is in the better half of the industry: RUTH outperforms 64.54% of its industry peers.
In the last couple of years the Operating Margin of RUTH has declined.
RUTH's Gross Margin of 26.05% is on the low side compared to the rest of the industry. RUTH is outperformed by 78.01% of its industry peers.
RUTH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.4% | ||
| PM (TTM) | 7.66% | ||
| GM | 26.05% |
OM growth 3Y-2.18%
OM growth 5Y-2.77%
PM growth 3Y-5.4%
PM growth 5Y1.02%
GM growth 3Y-0.65%
GM growth 5Y-0.68%
2. Health
2.1 Basic Checks
RUTH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RUTH has been reduced compared to 1 year ago.
The debt/assets ratio for RUTH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.63 indicates that RUTH is not a great score, but indicates only limited risk for bankruptcy at the moment.
RUTH has a better Altman-Z score (2.63) than 78.72% of its industry peers.
The Debt to FCF ratio of RUTH is 0.43, which is an excellent value as it means it would take RUTH, only 0.43 years of fcf income to pay off all of its debts.
RUTH has a better Debt to FCF ratio (0.43) than 91.49% of its industry peers.
RUTH has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
RUTH's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. RUTH outperforms 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.43 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.49
WACC8.36%
2.3 Liquidity
RUTH has a Current Ratio of 0.46. This is a bad value and indicates that RUTH is not financially healthy enough and could expect problems in meeting its short term obligations.
RUTH has a worse Current ratio (0.46) than 80.85% of its industry peers.
RUTH has a Quick Ratio of 0.46. This is a bad value and indicates that RUTH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.39, RUTH is doing worse than 80.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
RUTH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.92%, which is quite good.
Measured over the past 5 years, RUTH shows a small growth in Earnings Per Share. The EPS has been growing by 3.24% on average per year.
Looking at the last year, RUTH shows a quite strong growth in Revenue. The Revenue has grown by 10.39% in the last year.
The Revenue has been growing slightly by 4.05% on average over the past years.
EPS 1Y (TTM)9.92%
EPS 3Y-3.38%
EPS 5Y3.24%
EPS Q2Q%12.9%
Revenue 1Y (TTM)10.39%
Revenue growth 3Y2.63%
Revenue growth 5Y4.05%
Sales Q2Q%8.5%
3.2 Future
Based on estimates for the next years, RUTH will show a small growth in Earnings Per Share. The EPS will grow by 1.68% on average per year.
RUTH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.10% yearly.
EPS Next Y1.6%
EPS Next 2Y1.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.26%
Revenue Next 2Y7.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.16, the valuation of RUTH can be described as correct.
Based on the Price/Earnings ratio, RUTH is valued a bit cheaper than the industry average as 73.76% of the companies are valued more expensively.
RUTH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.70.
RUTH is valuated correctly with a Price/Forward Earnings ratio of 16.11.
72.34% of the companies in the same industry are more expensive than RUTH, based on the Price/Forward Earnings ratio.
RUTH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RUTH indicates a somewhat cheap valuation: RUTH is cheaper than 76.60% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RUTH is valued a bit cheaper than 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.75 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RUTH does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RUTH may justify a higher PE ratio.
PEG (NY)10.07
PEG (5Y)4.99
EPS Next 2Y1.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RUTH has a Yearly Dividend Yield of 2.98%.
RUTH's Dividend Yield is rather good when compared to the industry average which is at 3.55. RUTH pays more dividend than 90.07% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, RUTH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
On average, the dividend of RUTH grows each year by 8.05%, which is quite nice.
RUTH has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.05%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
49.38% of the earnings are spent on dividend by RUTH. This is a bit on the high side, but may be sustainable.
RUTH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.38%
EPS Next 2Y1.68%
EPS Next 3YN/A
21.49
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners2.58%
Ins Owner Change0%
Market Cap690.54M
Analysts78
Price Target19.64 (-8.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend0.56
Dividend Growth(5Y)8.05%
DP49.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.54%
Min EPS beat(2)-4.68%
Max EPS beat(2)13.76%
EPS beat(4)2
Avg EPS beat(4)7.98%
Min EPS beat(4)-17.44%
Max EPS beat(4)40.28%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.11%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-2%
Revenue beat(4)1
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)1.32%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)4.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 16.11 | ||
| P/S | 1.34 | ||
| P/FCF | 19.75 | ||
| P/OCF | 8.62 | ||
| P/B | 4.95 | ||
| P/tB | 13.9 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)1.33
EY6.19%
EPS(NY)1.33
Fwd EY6.21%
FCF(TTM)1.09
FCFY5.06%
OCF(TTM)2.49
OCFY11.61%
SpS16.08
BVpS4.35
TBVpS1.55
PEG (NY)10.07
PEG (5Y)4.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 28.32% | ||
| ROCE | N/A | ||
| ROIC | 12.46% | ||
| ROICexc | 13.01% | ||
| ROICexgc | 17.29% | ||
| OM | 10.4% | ||
| PM (TTM) | 7.66% | ||
| GM | 26.05% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y1.43%
ROICexcg growth 5Y-24.55%
ROICexc growth 3Y2.02%
ROICexc growth 5Y-15.16%
OM growth 3Y-2.18%
OM growth 5Y-2.77%
PM growth 3Y-5.4%
PM growth 5Y1.02%
GM growth 3Y-0.65%
GM growth 5Y-0.68%
F-Score5
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.43 | ||
| Debt/EBITDA | 0.19 | ||
| Cap/Depr | 189.36% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 88.42% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 2.63 |
F-Score5
WACC8.36%
ROIC/WACC1.49
Cap/Depr(3y)118.91%
Cap/Depr(5y)135.44%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.92%
EPS 3Y-3.38%
EPS 5Y3.24%
EPS Q2Q%12.9%
EPS Next Y1.6%
EPS Next 2Y1.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.39%
Revenue growth 3Y2.63%
Revenue growth 5Y4.05%
Sales Q2Q%8.5%
Revenue Next Year9.26%
Revenue Next 2Y7.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.25%
EBIT growth 3Y0.39%
EBIT growth 5Y1.17%
EBIT Next Year69.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.17%
FCF growth 3Y-21.12%
FCF growth 5Y-15.66%
OCF growth 1Y144.85%
OCF growth 3Y-2.68%
OCF growth 5Y-0.44%