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

NASDAQ:RUTH - US7833321091 - Common Stock

21.49 USD
+0.01 (+0.05%)
Last: 6/13/2023, 8:00:02 PM
21.5 USD
+0.01 (+0.05%)
After Hours: 6/13/2023, 8:00:02 PM
Fundamental Rating

5

Overall RUTH gets a fundamental rating of 5 out of 10. We evaluated RUTH against 134 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.


Dividend Valuation Growth Profitability Health

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6

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.
Each year in the past 5 years RUTH had a positive operating cash flow.
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

The Return On Assets of RUTH (7.89%) is better than 80.14% of its industry peers.
Looking at the Return On Equity, with a value of 28.32%, RUTH belongs to the top 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 has a better Profit Margin (7.66%) than 68.79% of its industry peers.
In the last couple of years the Profit Margin of RUTH has remained more or less at the same level.
RUTH has a better Operating Margin (10.40%) than 64.54% of its industry peers.
In the last couple of years the Operating Margin of RUTH has declined.
RUTH has a Gross Margin of 26.05%. This is in the lower half of the industry: RUTH underperforms 78.01% of its industry peers.
RUTH's Gross Margin has been stable in the last couple of years.
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

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RUTH is creating some value.
Compared to 1 year ago, RUTH has less shares outstanding
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.
With a decent Altman-Z score value of 2.63, RUTH is doing good in 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.
The Debt to FCF ratio of RUTH (0.43) is better than 91.49% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that RUTH is not too dependend on debt financing.
The Debt to Equity ratio of RUTH (0.11) is better than 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

A Current Ratio of 0.46 indicates that RUTH may have some problems paying 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.
A Quick Ratio of 0.39 indicates that RUTH may have some problems paying 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 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

The Earnings Per Share has grown by an nice 9.92% over the past year.
RUTH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.24% yearly.
Looking at the last year, RUTH shows a quite strong growth in Revenue. The Revenue has grown by 10.39% in the last year.
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

RUTH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.68% yearly.
The Revenue is expected to grow by 7.10% on average over the next years.
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

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.
Compared to an average S&P500 Price/Earnings ratio of 27.07, RUTH is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.11, RUTH is valued correctly.
Based on the Price/Forward Earnings ratio, RUTH is valued a bit cheaper than the industry average as 72.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.59, RUTH is valued a bit cheaper.
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 80 100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RUTH is valued a bit cheaper than 76.60% of the companies 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 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 RUTH does not grow enough to justify the current Price/Earnings ratio.
RUTH has a very decent profitability rating, which 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.
RUTH's Dividend Yield is rather good when compared to the industry average which is at 4.01. RUTH pays more dividend than 90.07% of the companies in the same industry.
RUTH's Dividend Yield is a higher than the S&P500 average which is at 2.46.
Industry RankSector Rank
Dividend Yield 2.98%

5.2 History

The dividend of RUTH is nicely growing with an annual growth rate of 8.05%!
RUTH has been paying a dividend for at least 10 years, so it has 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.
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 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%