RUTH'S HOSPITALITY GROUP INC (RUTH)
US7833321091 - Common Stock
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. RUTH has an average financial health and profitability rating. RUTH is not valued too expensively and it also shows a decent 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.
RUTH had positive earnings in 4 of the past 5 years.
RUTH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RUTH has a Return On Assets of 7.89%. This is amongst the best in the industry. RUTH outperforms 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 has a Return On Invested Capital of 12.46%. This is amongst the best in 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
With a decent Profit Margin value of 7.66%, RUTH is doing good in 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.
The Operating Margin of RUTH (10.40%) is better than 64.54% of its industry peers.
In the last couple of years the Operating Margin of RUTH has declined.
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.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RUTH is still creating some value.
Compared to 1 year ago, RUTH has less shares outstanding
The number of shares outstanding for RUTH has been increased compared to 5 years ago.
RUTH has a better debt/assets ratio than last year.
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.
Looking at the Debt to FCF ratio, with a value of 0.43, RUTH belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
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 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.
A Quick Ratio of 0.39 indicates that RUTH may have some problems paying its short term obligations.
The Quick ratio of RUTH (0.39) is worse than 80.14% of its industry peers.
| 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.
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%.
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 growth Q2Q12.9%
Revenue 1Y (TTM)10.39%
Revenue growth 3Y2.63%
Revenue growth 5Y4.05%
Revenue growth Q2Q8.5%
3.2 Future
The Earnings Per Share is expected to grow by 1.68% on average over the next years.
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
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 25.25, 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.
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 21.67, RUTH is valued a bit cheaper.
| 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 the industry average as 72.34% of the companies are valued more expensively.
| 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.
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
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 2.62, RUTH pays a better dividend. On top of this RUTH pays more dividend than 90.07% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, 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
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
RUTH'S HOSPITALITY GROUP INC
NASDAQ:RUTH (6/13/2023, 7:00:02 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap690.54M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 16.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)10.07
PEG (5Y)4.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 28.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.4% | ||
| PM (TTM) | 7.66% | ||
| GM | 26.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)9.92%
EPS 3Y-3.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.39%
Revenue growth 3Y2.63%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y