NasdaqGS:RUTH

Stock Analysis Report

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

PE ratio (14.9x) is below the US market (18.3x)

Earnings grew by 17.1% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Outstanding track record second-rate dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.5%

RUTH

3.3%

US Hospitality

1.8%

US Market


1 Year Return

-12.1%

RUTH

8.1%

US Hospitality

20.1%

US Market

Return vs Industry: RUTH underperformed the US Hospitality industry which returned 8.1% over the past year.

Return vs Market: RUTH underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

RUTHIndustryMarket
7 Day5.5%3.3%1.8%
30 Day-2.1%-4.6%1.4%
90 Day-6.6%5.7%8.8%
1 Year-10.1%-12.1%10.9%8.1%22.7%20.1%
3 Year30.9%23.6%36.0%27.0%50.1%40.4%
5 Year54.3%41.0%45.6%30.1%72.9%53.9%

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

Valuation

Is Ruth's Hospitality Group undervalued compared to its fair value and its price relative to the market?

14.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RUTH ($21.69) is trading above our estimate of fair value ($16.17)

Significantly Below Fair Value: RUTH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RUTH is good value based on its PE Ratio (14.9x) compared to the Hospitality industry average (24.2x).

PE vs Market: RUTH is good value based on its PE Ratio (14.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: RUTH is poor value based on its PEG Ratio (29.7x)


Price to Book Ratio

PB vs Industry: RUTH is overvalued based on its PB Ratio (7.1x) compared to the US Hospitality industry average (2.2x).


Next Steps

Future Growth

How is Ruth's Hospitality Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RUTH's forecast earnings growth (0.5% per year) is below the savings rate (1.7%).

Earnings vs Market: RUTH's earnings (0.5% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: RUTH's earnings are forecast to grow, but not significantly.

Revenue vs Market: RUTH's revenue (6.9% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: RUTH's revenue (6.9% 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?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUTH has high quality earnings.

Growing Profit Margin: RUTH's current net profit margins (9.2%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: RUTH's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: RUTH's earnings growth over the past year (17.1%) exceeds its 5-year average (9.5% per year).

Earnings vs Industry: RUTH earnings growth over the past year (17.1%) exceeded the Hospitality industry -11%.


Return on Equity

High ROE: RUTH's Return on Equity (49.1%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ruth's Hospitality Group's financial position?


Financial Position Analysis

Short Term Liabilities: RUTH's short term assets ($31.3M) do not cover its short term liabilities ($87.4M).

Long Term Liabilities: RUTH's short term assets ($31.3M) do not cover its long term liabilities ($296.6M).


Debt to Equity History and Analysis

Debt Level: RUTH's debt to equity ratio (95.7%) is considered high.

Reducing Debt: RUTH's debt to equity ratio has increased from 31.4% to 95.7% over the past 5 years.

Debt Coverage: RUTH's debt is well covered by operating cash flow (82.6%).

Interest Coverage: RUTH's interest payments on its debt are well covered by EBIT (28.1x 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 0.4x debt).


Next Steps

Dividend

What is Ruth's Hospitality Group's current dividend yield, its reliability and sustainability?

2.40%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: RUTH's dividend (2.4%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: RUTH's dividend (2.4%) is low compared to the top 25% of dividend payers in the US market (3.68%).


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 (34.4%), RUTH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RUTH's dividends in 3 years are forecast to be well covered by earnings (42.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Cheryl Henry (45yo)

1.5yrs

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 ($USD6.11M) is above average for companies of similar size in the US market ($USD2.47M).

Compensation vs Earnings: Cheryl's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael O'Donnell
Executive Chairman9.3yrsUS$2.86m3.85% $23.9m
Cheryl Henry
President1.5yrsUS$6.11m1.64% $10.2m
Arne Haak
Executive VP & CFO8.5yrsUS$1.13m1.13% $7.0m
Susan Mirdamadi
Executive VP & Chief Administrative Officer1.3yrsUS$922.48k0.49% $3.0m
Michael Hynes
Vice President of Accounting4.8yrsno datano data
Alice Givens
Chief Compliance Officer4yrsno data0.13% $802.2k
Susie Gorsline
Chief People Officer4yrsno datano data
Peter Beaudrault
Vice President of Franchise Operations & Development2.8yrsUS$571.97kno data
Mark Taylor
Vice President of Financial Planning & Analysis0yrsno datano data

3.4yrs

Average Tenure

57yo

Average Age

Experienced Management: RUTH's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael O'Donnell
Executive Chairman9.3yrsUS$2.86m3.85% $23.9m
Cheryl Henry
President1.5yrsUS$6.11m1.64% $10.2m
Robin Selati
Lead Director9.3yrsUS$191.98k0.032% $200.0k
Carla Cooper
Independent Director16.2yrsUS$166.98k0.13% $801.2k
Stephen King
Independent Director2.1yrsUS$171.29k0.014% $84.4k
Mary Baglivo
Independent Director2.8yrsUS$162.18k0.029% $181.7k
Marie Perry
Independent Director1.5yrsUS$63.94k0.0058% $36.1k
Giannella Alvarez
Independent Director4yrsUS$164.29k0.051% $314.6k

3.4yrs

Average Tenure

60yo

Average Age

Experienced Board: RUTH's board of directors are considered experienced (3.4 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$620.913m
  • Shares outstanding: 28.63m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RUTHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2005
R6RDB (Deutsche Boerse AG)YesCommon StockDEEURAug 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. Its restaurants offer food and beverage products to special occasion diners and frequent customers, as well as business clientele. As of February 22, 2019, the company had approximately 150 company-owned and franchisee-owned restaurants worldwide. Ruth's Hospitality Group, Inc. was founded in 1965 and is headquartered in Winter Park, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/15 23:59
End of Day Share Price2020/02/14 00:00
Earnings2019/09/29
Annual Earnings2018/12/30


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.