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RUTH'S HOSPITALITY GROUP INC (RUTH) Stock Fundamental Analysis

NASDAQ:RUTH - Nasdaq - US7833321091 - Common Stock - Currency: USD

21.49  +0.01 (+0.05%)

After market: 21.5 +0.01 (+0.05%)

Fundamental Rating

5

RUTH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. RUTH has only an average score on both its financial health and profitability. RUTH has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

RUTH had positive earnings in the past year.
RUTH had a positive operating cash flow in the past year.
RUTH had positive earnings in 4 of the past 5 years.
In the past 5 years RUTH always reported a positive cash flow from operatings.
RUTH Yearly Net Income VS EBIT VS OCF VS FCFRUTH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 20M -20M 40M 60M 80M

1.2 Ratios

With an excellent Return On Assets value of 7.89%, RUTH belongs to the best of the industry, outperforming 80.14% of the companies in the same industry.
With an excellent Return On Equity value of 28.32%, RUTH belongs to the best of the industry, outperforming 82.27% of the companies in the same industry.
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 RankSector 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
RUTH Yearly ROA, ROE, ROICRUTH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 20 -20 40

1.3 Margins

RUTH's Profit Margin of 7.66% is fine compared to the rest of the industry. RUTH outperforms 68.79% of its industry peers.
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.
RUTH's Operating Margin has declined in the last couple of years.
The Gross Margin of RUTH (26.05%) is worse than 78.01% of its industry peers.
In the last couple of years the Gross Margin of RUTH has remained more or less at the same level.
Industry RankSector 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%
RUTH Yearly Profit, Operating, Gross MarginsRUTH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20

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5

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.
RUTH has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, RUTH has an improved debt to assets ratio.
RUTH Yearly Shares OutstandingRUTH Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M
RUTH Yearly Total Debt VS Total AssetsRUTH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M

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's Altman-Z score of 2.63 is fine compared to the rest of the industry. RUTH outperforms 78.72% of its industry peers.
RUTH has a debt to FCF ratio of 0.43. This is a very positive value and a sign of high solvency as it would only need 0.43 years to pay back of all of its debts.
RUTH has a Debt to FCF ratio of 0.43. This is amongst the best in the industry. RUTH outperforms 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 has a Debt to Equity ratio of 0.11. This is in the better half of the industry: RUTH outperforms 78.72% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.11
Debt/FCF 0.43
Altman-Z 2.63
ROIC/WACC1.49
WACC8.36%
RUTH Yearly LT Debt VS Equity VS FCFRUTH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M

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's Current ratio of 0.46 is on the low side compared to the rest of the industry. RUTH is outperformed by 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.
RUTH's Quick ratio of 0.39 is on the low side compared to the rest of the industry. RUTH is outperformed by 80.14% of its industry peers.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.39
RUTH Yearly Current Assets VS Current LiabilitesRUTH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M

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4

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.
RUTH Yearly Revenue VS EstimatesRUTH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
RUTH Yearly EPS VS EstimatesRUTH Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 0.5 1

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5

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 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.11, which indicates a correct valuation of RUTH.
72.34% of the companies in the same industry are more expensive than RUTH, based on the Price/Forward Earnings ratio.
RUTH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
Industry RankSector Rank
PE 16.16
Fwd PE 16.11
RUTH Price Earnings VS Forward Price EarningsRUTH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

76.60% of the companies in the same industry are more expensive than RUTH, based on the Enterprise Value to EBITDA ratio.
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 RankSector Rank
P/FCF 19.75
EV/EBITDA 8.89
RUTH Per share dataRUTH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.98%, RUTH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.57, RUTH pays a better dividend. On top of this RUTH pays more dividend than 90.07% of the companies listed in the same industry.
RUTH's Dividend Yield is a higher than the S&P500 average which is at 2.34.
Industry RankSector 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
RUTH Yearly Dividends per shareRUTH Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2022 2023 0.1 0.2 0.3 0.4 0.5

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
RUTH Yearly Income VS Free CF VS DividendRUTH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 20M -20M 40M 60M
RUTH Dividend Payout.RUTH Dividend Payout, showing the Payout Ratio.RUTH Dividend Payout.PayoutRetained Earnings

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RUTH'S HOSPITALITY GROUP INC

NASDAQ:RUTH (6/13/2023, 8:00:02 PM)

After market: 21.5 +0.01 (+0.05%)

21.49

+0.01 (+0.05%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)05-05 2023-05-05/amc
Earnings (Next)08-03 2023-08-03/bmo
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%