RUTH'S HOSPITALITY GROUP INC (RUTH) Stock Fundamental Analysis
USA - NASDAQ:RUTH - US7833321091 - Common Stock
21.49 USD
+0.01 (+0.05%)
21.5 USD
+0.01 (+0.05%)
Taking everything into account, RUTH scores 5 out of 10 in our fundamental rating. RUTH was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. RUTH has an average financial health and profitability rating. RUTH has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RUTH was profitable.
RUTH had a positive operating cash flow in the past year.
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
The Return On Assets of RUTH (7.89%) is better than 80.14% of its industry peers.
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.
RUTH's Return On Invested Capital of 12.46% is amongst the best of the industry. RUTH outperforms 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
RUTH has a Profit Margin of 7.66%. This is in the better half of the industry: RUTH outperforms 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.
RUTH's Operating Margin has declined in the last couple of years.
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.
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.
Compared to 1 year ago, RUTH has less shares outstanding
RUTH has a better debt/assets ratio than last year.
2.2 Solvency
RUTH has an Altman-Z score of 2.63. This is not the best score and indicates that RUTH is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RUTH (2.63) is better 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.
The Debt to FCF ratio of RUTH (0.43) is better 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.
Looking at the Debt to Equity ratio, with a value of 0.11, RUTH is in the better half of 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
A Current Ratio of 0.46 indicates that RUTH may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.46, RUTH is doing worse than 80.85% of the companies in the same industry.
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 has a worse Quick ratio (0.39) than 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.
The Earnings Per Share has been growing slightly by 3.24% on average over the past years.
RUTH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.39%.
Measured over the past years, RUTH shows a small growth in Revenue. The Revenue has been growing by 4.05% on average per year.
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.
Based on estimates for the next years, RUTH will show a small growth in Revenue. The Revenue will grow by 7.10% on average per year.
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
With a Price/Earnings ratio of 16.16, RUTH is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of RUTH indicates a somewhat cheap valuation: RUTH is cheaper than 73.76% of the companies listed in the same industry.
RUTH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.11, the valuation of RUTH can be described as correct.
Based on the Price/Forward Earnings ratio, RUTH is valued a bit cheaper than 72.34% of the companies in the same industry.
RUTH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, 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
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.
RUTH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RUTH is 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%.
Compared to an average industry Dividend Yield of 3.90, 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 2.31.
| Industry Rank | Sector 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 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.
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
Revenue(TTM)516.58M
Net Income(TTM)39.55M
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
Graham NumberN/A
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
ROICexgc growth 3Y1.43%
ROICexgc 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%
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 of RUTH'S HOSPITALITY GROUP INC (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.
Can you provide the PE and PB ratios for RUTH stock?
The Price/Earnings (PE) ratio for RUTH'S HOSPITALITY GROUP INC (RUTH) is 16.16 and the Price/Book (PB) ratio is 4.95.
Can you provide the dividend sustainability for RUTH stock?
The dividend rating of RUTH'S HOSPITALITY GROUP INC (RUTH) is 5 / 10 and the dividend payout ratio is 49.38%.