Ruth's Hospitality Group
Market Cap
US$201.1m
Last Updated
2020/03/28 03:59 UTC
Data Sources
Company Financials +
Executive Summary
Ruth's Hospitality Group, Inc., together with its subsidiaries, develops, operates, and franchises fine dining restaurants under the Ruth’s Chris Steak House name.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -1.6% per year for the next 3 years
Snowflake Analysis
Good value with acceptable track record.
Similar Companies
Share Price & News
How has Ruth's Hospitality Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RUTH's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
72.1%
RUTH
15.5%
US Hospitality
10.5%
US Market
1 Year Return
-72.4%
RUTH
-41.4%
US Hospitality
-11.5%
US Market
Return vs Industry: RUTH underperformed the US Hospitality industry which returned -41.4% over the past year.
Return vs Market: RUTH underperformed the US Market which returned -11.5% over the past year.
Shareholder returns
| RUTH | Industry | Market | |
|---|---|---|---|
| 7 Day | 72.1% | 15.5% | 10.5% |
| 30 Day | -61.7% | -35.2% | -15.4% |
| 90 Day | -67.2% | -46.5% | -21.4% |
| 1 Year | -71.6%-72.4% | -39.8%-41.4% | -9.6%-11.5% |
| 3 Year | -62.5%-64.7% | -29.3%-34.2% | 12.6%5.4% |
| 5 Year | -50.6%-55.0% | -23.1%-31.6% | 32.8%18.1% |
Price Volatility Vs. Market
How volatile is Ruth's Hospitality Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
How Does Ruth's Hospitality Group's (NASDAQ:RUTH) P/E Compare To Its Industry, After The Share Price Drop?2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Ruth's Hospitality Group, Inc.'s (NASDAQ:RUTH) P/E Ratio1 month ago | Simply Wall St
Here's Why Ruth's Hospitality Group (NASDAQ:RUTH) Can Manage Its Debt ResponsiblyValuation
Is Ruth's Hospitality Group undervalued compared to its fair value and its price relative to the market?
43.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RUTH ($7.08) is trading below our estimate of fair value ($12.61)
Significantly Below Fair Value: RUTH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RUTH is good value based on its PE Ratio (4.9x) compared to the Hospitality industry average (12.7x).
PE vs Market: RUTH is good value based on its PE Ratio (4.9x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: RUTH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: RUTH is overvalued based on its PB Ratio (2.1x) compared to the US Hospitality industry average (1.4x).
Next Steps
Future Growth
How is Ruth's Hospitality Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-1.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RUTH's earnings are forecast to decline over the next 3 years (-1.6% per year).
Earnings vs Market: RUTH's earnings are forecast to decline over the next 3 years (-1.6% per year).
High Growth Earnings: RUTH's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RUTH's revenue (5% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: RUTH's revenue (5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if RUTH's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Ruth's Hospitality Group performed over the past 5 years?
9.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RUTH has high quality earnings.
Growing Profit Margin: RUTH's current net profit margins (9%) are lower than last year (9.2%).
Past Earnings Growth Analysis
Earnings Trend: RUTH's earnings have grown by 9.1% per year over the past 5 years.
Accelerating Growth: RUTH's earnings growth over the past year (1.6%) is below its 5-year average (9.1% per year).
Earnings vs Industry: RUTH earnings growth over the past year (1.6%) underperformed the Hospitality industry 1.7%.
Return on Equity
High ROE: RUTH's Return on Equity (44.8%) is considered outstanding.
Next Steps
Financial Health
How is Ruth's Hospitality Group's financial position?
Financial Position Analysis
Short Term Liabilities: RUTH's short term assets ($42.0M) do not cover its short term liabilities ($112.9M).
Long Term Liabilities: RUTH's short term assets ($42.0M) do not cover its long term liabilities ($289.9M).
Debt to Equity History and Analysis
Debt Level: RUTH's debt to equity ratio (68%) is considered high.
Reducing Debt: RUTH's debt to equity ratio has increased from 13.3% to 68% over the past 5 years.
Debt Coverage: RUTH's debt is well covered by operating cash flow (113.9%).
Interest Coverage: RUTH's interest payments on its debt are well covered by EBIT (24.1x coverage).
Balance Sheet
Inventory Level: RUTH has a high level of physical assets or inventory.
Debt Coverage by Assets: RUTH's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is Ruth's Hospitality Group's current dividend yield, its reliability and sustainability?
8.48%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RUTH's dividend (8.48%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: RUTH's dividend (8.48%) is in the top 25% of dividend payers in the US market (5.45%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, RUTH has been paying a dividend for less than 10 years.
Growing Dividend: RUTH's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35.7%), RUTH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Cheryl Henry (45yo)
1.58s
Tenure
US$6,105,629
Compensation
Ms. Cheryl Janet Henry has been President of Ruth's Hospitality Group Inc. since July 20, 2016. She has been Chief Executive Officer at Ruth's Hospitality Group, Inc. since August 10, 2018. She served as C ...
CEO Compensation Analysis
Compensation vs Market: Cheryl's total compensation ($USD6.11M) is above average for companies of similar size in the US market ($USD1.45M).
Compensation vs Earnings: Cheryl's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 9.42yrs | US$2.86m | 3.93% $7.9m | |
| President | 1.58yrs | US$6.11m | 1.81% $3.6m | |
| Executive VP & CFO | 8.58yrs | US$1.13m | 1.16% $2.3m | |
| Executive VP & Chief Administrative Officer | 1.42yrs | US$922.48k | 0.52% $1.0m | |
| Vice President of Accounting | 4.92yrs | no data | no data | |
| Chief Compliance Officer | 4.08yrs | no data | 0.16% $320.5k | |
| Chief People Officer | 4.08yrs | no data | no data | |
| Vice President of Franchise Operations & Development | 2.83yrs | US$571.97k | no data | |
| Vice President of Financial Planning & Analysis | no data | no data | no data |
3.5yrs
Average Tenure
57yo
Average Age
Experienced Management: RUTH's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 9.42yrs | US$2.86m | 3.93% $7.9m | |
| President | 1.58yrs | US$6.11m | 1.81% $3.6m | |
| Lead Director | 9.42yrs | US$191.98k | 0.032% $65.2k | |
| Independent Director | 16.25yrs | US$166.98k | 0.13% $261.3k | |
| Independent Director | 2.17yrs | US$171.29k | 0.018% $36.5k | |
| Independent Director | 2.83yrs | US$162.18k | 0.034% $68.2k | |
| Independent Director | 1.58yrs | US$63.94k | 0.0059% $11.8k | |
| Independent Director | 4.08yrs | US$164.29k | 0.055% $111.6k |
3.5yrs
Average Tenure
60yo
Average Age
Experienced Board: RUTH's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Ruth's Hospitality Group, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Ruth's Hospitality Group, Inc.
- Ticker: RUTH
- Exchange: NasdaqGS
- Founded: 1965
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$201.096m
- Shares outstanding: 28.42m
- Website: https://www.rhgi.com
Number of Employees
Location
- Ruth's Hospitality Group, Inc.
- 1030 West Canton Avenue
- Suite 100
- Winter Park
- Florida
- 32789
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RUTH | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Aug 2005 |
| R6R | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 2005 |
Biography
Ruth's Hospitality Group, Inc., together with its subsidiaries, develops, operates, and franchises fine dining restaurants under the Ruth’s Chris Steak House name. The company’s restaurants offer food and beverage products to special occasion diners and frequent customers, as well as business clientele. As of February 28, 2020, it had approximately 150 company-owned and franchisee-owned restaurants worldwide. The company was formerly known as Ruth’s Chris Steak House, Inc. and changed its name to Ruth’s Hospitality Group, Inc. in May 2008. Ruth's Hospitality Group, Inc. was founded in 1965 and is headquartered in Winter Park, Florida.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 03:59 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/29 |
| Annual Earnings | 2019/12/29 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.