21.49 USD
+0.01 (+0.05%)
At close: Jun 13, 2023
21.5 USD
+0.01 (+0.05%)
After Hours: 6/13/2023, 8:00:02 PM
RUTH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 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 is not valued too expensively and it also shows a decent growth rate.
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.
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.
- 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.
- The Return On Invested Capital of RUTH (12.46%) is better than 82.27% of its industry peers.
| 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.
- In the last couple of years the Profit Margin of RUTH has remained more or less at the same level.
- With a decent Operating Margin value of 10.40%, RUTH is doing good in the industry, outperforming 64.54% of the companies in the same industry.
- RUTH's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 26.05%, RUTH is not doing good in the industry: 78.01% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of RUTH has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RUTH 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.
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.
- Looking at the Altman-Z score, with a value of 2.63, RUTH is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
- 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 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.
- With a decent Debt to Equity ratio value of 0.11, RUTH is doing good in the industry, outperforming 78.72% of the companies in the same industry.
| 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 Current ratio of 0.46. This is amonst the worse of the industry: RUTH underperforms 80.85% of its industry peers.
- A Quick Ratio of 0.39 indicates that RUTH may have some problems paying its short term obligations.
- RUTH has a Quick ratio of 0.39. This is amonst the worse of the industry: RUTH underperforms 80.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 9.92% over the past year.
- 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.
- The Revenue has grown by 10.39% in the past year. This is quite good.
- RUTH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.05% yearly.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.16, which indicates a correct valuation of RUTH.
- 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.
- The average S&P500 Price/Earnings ratio is at 28.30. RUTH is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 16.11, RUTH is valued correctly.
- 72.34% of the companies in the same industry are more expensive than RUTH, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. RUTH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 16.11 |
4.2 Price Multiples
- RUTH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RUTH is cheaper than 76.60% of the companies in the same industry.
- 72.34% of the companies in the same industry are more expensive than RUTH, based on the Price/Free Cash Flow ratio.
| 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 an expensive valuation of the company.
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%.
- Compared to an average industry Dividend Yield of 1.25, 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 rather good when compared to the S&P500 average which is at 1.83.
| 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
- RUTH pays out 49.38% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of RUTH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.38%
EPS Next 2Y1.68%
EPS Next 3YN/A
RUTH'S HOSPITALITY GROUP INC / RUTH FAQ
What is the fundamental rating for RUTH stock?
ChartMill assigns a fundamental rating of 4 / 10 to RUTH.
What is the valuation status for RUTH stock?
ChartMill assigns a valuation rating of 3 / 10 to RUTH'S HOSPITALITY GROUP INC (RUTH). This can be considered as Overvalued.
What is the profitability of RUTH stock?
RUTH'S HOSPITALITY GROUP INC (RUTH) has a profitability rating of 4 / 10.
What is the earnings growth outlook for RUTH'S HOSPITALITY GROUP INC?
The Earnings per Share (EPS) of RUTH'S HOSPITALITY GROUP INC (RUTH) is expected to grow by 1.6% in the next year.
How sustainable is the dividend of RUTH'S HOSPITALITY GROUP INC (RUTH) stock?
The dividend rating of RUTH'S HOSPITALITY GROUP INC (RUTH) is 5 / 10 and the dividend payout ratio is 49.38%.