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Ruth's Hospitality Group

Nasdaq:RUTH
Snowflake Description

Proven track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RUTH
Nasdaq
$734M
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

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 last earnings update was 108 days ago. More info.


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RUTH Share Price and Events
7 Day Returns
2.5%
NasdaqGS:RUTH
0.8%
US Hospitality
1.2%
US Market
1 Year Returns
8.7%
NasdaqGS:RUTH
-9.6%
US Hospitality
0.9%
US Market
RUTH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ruth's Hospitality Group (RUTH) 2.5% 4.5% -1.8% 8.7% 46.5% 94.3%
US Hospitality 0.8% 9% 6.2% -9.6% 47.5% 15.1%
US Market 1.2% 6.6% 1.2% 0.9% 44.3% 41.3%
1 Year Return vs Industry and Market
  • RUTH outperformed the Hospitality industry which returned -9.6% over the past year.
  • RUTH outperformed the Market in United States of America which returned 0.9% over the past year.
Price Volatility
RUTH
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Ruth's Hospitality Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ruth's Hospitality Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ruth's Hospitality Group.

NasdaqGS:RUTH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:RUTH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.97 (1 + (1- 21%) (7.36%))
1.026
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.026 * 7.27%)
10.19%

Discounted Cash Flow Calculation for NasdaqGS:RUTH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ruth's Hospitality Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:RUTH DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 39.08 42.15 45.45 49.02 52.86
Source Est @ 7.84% Est @ 7.84% Est @ 7.84% Est @ 7.84% Est @ 7.84%
Present Value
Discounted (@ 10.19%)
35.47 34.71 33.97 33.25 32.54
Present value of next 5 years cash flows $169.94
NasdaqGS:RUTH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $52.86 × (1 + 2.73%) ÷ (10.19% – 2.73%)
$727.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $727.97 ÷ (1 + 10.19%)5
$448.14
NasdaqGS:RUTH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $169.94 + $448.14
$618.07
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $618.07 / 29.73
$20.79
NasdaqGS:RUTH Discount to Share Price
Calculation Result
Value per share (USD) From above. $20.79
Current discount Discount to share price of $24.68
= -1 x ($24.68 - $20.79) / $20.79
-18.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Ruth's Hospitality Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ruth's Hospitality Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ruth's Hospitality Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:RUTH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $1.22
NasdaqGS:RUTH Share Price ** NasdaqGS (2019-02-15) in USD $24.68
United States of America Hospitality Industry PE Ratio Median Figure of 73 Publicly-Listed Hospitality Companies 19.18x
United States of America Market PE Ratio Median Figure of 3,045 Publicly-Listed Companies 16.97x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ruth's Hospitality Group.

NasdaqGS:RUTH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:RUTH Share Price ÷ EPS (both in USD)

= 24.68 ÷ 1.22

20.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ruth's Hospitality Group is overvalued based on earnings compared to the US Hospitality industry average.
  • Ruth's Hospitality Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ruth's Hospitality Group's expected growth come at a high price?
Raw Data
NasdaqGS:RUTH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
5.5%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 53 Publicly-Listed Hospitality Companies 1.31x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.36x

*Line of best fit is calculated by linear regression .

NasdaqGS:RUTH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.19x ÷ 5.5%

3.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ruth's Hospitality Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ruth's Hospitality Group's assets?
Raw Data
NasdaqGS:RUTH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $3.01
NasdaqGS:RUTH Share Price * NasdaqGS (2019-02-15) in USD $24.68
United States of America Hospitality Industry PB Ratio Median Figure of 105 Publicly-Listed Hospitality Companies 2.08x
United States of America Market PB Ratio Median Figure of 5,122 Publicly-Listed Companies 1.82x
NasdaqGS:RUTH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:RUTH Share Price ÷ Book Value per Share (both in USD)

= 24.68 ÷ 3.01

8.2x

* Primary Listing of Ruth's Hospitality Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ruth's Hospitality Group is overvalued based on assets compared to the US Hospitality industry average.
X
Value checks
We assess Ruth's Hospitality Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Ruth's Hospitality Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ruth's Hospitality Group expected to grow at an attractive rate?
  • Ruth's Hospitality Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Ruth's Hospitality Group's earnings growth is positive but not above the United States of America market average.
  • Ruth's Hospitality Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:RUTH Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:RUTH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 5.5%
NasdaqGS:RUTH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 5%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 11.3%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 6.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:RUTH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:RUTH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 502 44 1
2019-12-31 474 44 3
2018-12-31 452 42 3
NasdaqGS:RUTH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 449 74 36
2018-07-01 435 66 35
2018-04-01 426 63 33
2017-12-31 415 69 30
2017-09-24 398 62 30
2017-06-25 397 67 32
2017-03-26 390 66 31
2016-12-25 386 56 31
2016-09-25 383 54 30
2016-06-26 380 53 30
2016-03-27 378 58 30
2015-12-27 373 55 30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ruth's Hospitality Group's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
  • Ruth's Hospitality Group's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:RUTH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Ruth's Hospitality Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RUTH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.49 1.49 1.49 1.00
2019-12-31 1.47 1.52 1.42 3.00
2018-12-31 1.37 1.38 1.37 3.00
NasdaqGS:RUTH Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 1.22
2018-07-01 1.15
2018-04-01 1.09
2017-12-31 1.00
2017-09-24 0.99
2017-06-25 1.03
2017-03-26 0.99
2016-12-25 0.97
2016-09-25 0.94
2016-06-26 0.89
2016-03-27 0.90
2015-12-27 0.89

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ruth's Hospitality Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ruth's Hospitality Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ruth's Hospitality Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ruth's Hospitality Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ruth's Hospitality Group's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ruth's Hospitality Group's year on year earnings growth rate has been positive over the past 5 years.
  • Ruth's Hospitality Group's 1-year earnings growth exceeds its 5-year average (21% vs 7.4%)
  • Ruth's Hospitality Group's earnings growth has not exceeded the US Hospitality industry average in the past year (21% vs 22.1%).
Earnings and Revenue History
Ruth's Hospitality Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ruth's Hospitality Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:RUTH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 449.28 36.38 51.97
2018-07-01 435.43 34.55 49.35
2018-04-01 425.81 32.80 47.20
2017-12-31 414.82 30.25 46.82
2017-09-24 398.35 30.07 47.81
2017-06-25 396.96 31.81 47.86
2017-03-26 389.60 30.96 46.65
2016-12-25 385.95 30.76 44.88
2016-09-25 383.07 30.44 44.75
2016-06-26 379.58 29.57 44.15
2016-03-27 377.98 30.28 43.77
2015-12-27 373.43 30.17 42.20
2015-09-27 367.63 29.93 40.32
2015-06-28 361.13 29.49 38.20
2015-03-29 353.09 28.49 36.05
2014-12-28 346.10 26.71 36.02
2014-09-28 277.85 22.73 32.04
2014-06-29 290.70 23.55 33.85
2014-03-30 306.73 24.67 36.99
2013-12-29 322.35 24.49 37.84
2013-09-29 406.00 23.25 44.13
2013-06-30 403.70 21.12 42.90
2013-03-31 401.74 19.17 40.55
2012-12-30 310.29 -20.17 35.31
2012-09-23 381.35 -22.11 35.59
2012-06-24 377.20 -22.95 34.80
2012-03-25 372.15 -22.08 34.69

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ruth's Hospitality Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Ruth's Hospitality Group used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Ruth's Hospitality Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ruth's Hospitality Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ruth's Hospitality Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ruth's Hospitality Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ruth's Hospitality Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ruth's Hospitality Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Ruth's Hospitality Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ruth's Hospitality Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ruth's Hospitality Group Company Filings, last reported 4 months ago.

NasdaqGS:RUTH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 89.29 54.00 4.88
2018-07-01 87.79 50.00 3.05
2018-04-01 87.59 43.00 2.17
2017-12-31 79.50 50.00 4.05
2017-09-24 80.37 30.00 4.86
2017-06-25 86.56 21.00 5.23
2017-03-26 87.76 14.00 3.05
2016-12-25 79.01 25.00 3.79
2016-09-25 75.44 38.00 3.95
2016-06-26 80.93 30.00 3.55
2016-03-27 95.13 8.00 2.66
2015-12-27 97.90 0.00 3.10
2015-09-27 101.22 5.00 2.79
2015-06-28 106.03 0.00 5.13
2015-03-29 102.05 3.00 3.42
2014-12-28 96.31 13.00 4.30
2014-09-28 94.42 30.00 3.49
2014-06-29 106.79 22.00 3.21
2014-03-30 104.47 22.00 3.72
2013-12-29 100.65 19.00 10.59
2013-09-29 98.88 37.00 5.28
2013-06-30 96.98 40.00 5.53
2013-03-31 90.74 43.00 6.32
2012-12-30 80.73 45.00 7.91
2012-09-23 77.97 69.00 3.91
2012-06-24 76.58 71.00 4.49
2012-03-25 69.81 77.00 3.05
  • Ruth's Hospitality Group's level of debt (60.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (37% vs 60.5% today).
  • Debt is well covered by operating cash flow (137.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.2x coverage).
X
Financial health checks
We assess Ruth's Hospitality Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ruth's Hospitality Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.78%
Current annual income from Ruth's Hospitality Group dividends. Estimated to be 1.78% next year.
If you bought $2,000 of Ruth's Hospitality Group shares you are expected to receive $36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ruth's Hospitality Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Ruth's Hospitality Group's dividend is below the markets top 25% of dividend payers in United States of America (3.59%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:RUTH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 45 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1998 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:RUTH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.44 1.00
2019-12-31 0.44 1.00
2018-12-31 0.44 1.00
NasdaqGS:RUTH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-08-10 0.440 1.659
2018-02-21 0.440 1.642
2017-11-03 0.360 1.652
2017-07-28 0.360 1.777
2017-05-05 0.360 1.677
2017-03-08 0.360 1.820
2017-02-17 0.360 2.067
2016-10-28 0.280 1.614
2016-04-28 0.280 1.798
2016-03-04 0.280 1.583
2016-02-12 0.280 1.641
2015-10-30 0.240 1.470
2015-08-04 0.240 1.483
2015-07-31 0.240 1.383
2015-05-05 0.240 1.548
2015-05-01 0.240 1.607
2014-11-05 0.200 1.380
2014-08-01 0.200 1.782
2014-02-21 0.200 1.638
2013-11-06 0.160 1.194
2013-11-01 0.160 1.260
2013-05-03 0.160 1.334

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Ruth's Hospitality Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Ruth's Hospitality Group only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Ruth's Hospitality Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Ruth's Hospitality Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ruth's Hospitality Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ruth's Hospitality Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ruth's Hospitality Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Cheryl Henry
COMPENSATION $1,430,302
AGE 44
TENURE AS CEO 0.5 years
CEO Bio

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 Chief Operating Officer at Ruth's Hospitality Group, Inc. until August 10, 2018. She has been Director at Ruth's Hospitality Group, Inc. August 10, 2018. Ms. Henry served as Chief Branding Officer and Senior Vice President of Ruth's Hospitality Group Inc. from August 22, 2011 to July 20, 2016. Ms. Henry joined Ruth's in 2007 and held a variety of positions within it. She was Chief of Staff for Orlando Mayor Buddy Dyer. Ms. Henry served as the Chief Business Development Officer of Ruth's Hospitality Group Inc. from June 2007 to August 2011. Ms. Henry has served on the Board of Trustees of the Culinary Institute of America since December 2017 and on the Board of Governors of the Center for Creative Leadership since June 2017.

CEO Compensation
  • Cheryl's compensation has been consistent with company performance over the past year.
  • Cheryl's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Ruth's Hospitality Group management team in years:

2.4
Average Tenure
56
Average Age
  • The tenure for the Ruth's Hospitality Group management team is about average.
Management Team

Mike O'Donnell

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
62
TENURE
0.5 yrs

Cheryl Henry

TITLE
President
COMPENSATION
$1M
AGE
44
TENURE
0.5 yrs

Arne Haak

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
50
TENURE
7.5 yrs

Susan Mirdamadi

TITLE
Executive VP & Chief Administrative Officer
COMPENSATION
$900K
AGE
56
TENURE
0.3 yrs

Michael Hynes

TITLE
Vice President of Accounting
TENURE
3.8 yrs

Alice Givens

TITLE
Chief Compliance Officer
TENURE
3 yrs

Susie Gorsline

TITLE
Chief People Officer
TENURE
3 yrs

Pete Beaudrault

TITLE
Vice President of Franchise Operations & Development
COMPENSATION
$572K
AGE
63
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Ruth's Hospitality Group board of directors in years:

2.4
Average Tenure
59
Average Age
  • The average tenure for the Ruth's Hospitality Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Cheryl Henry

TITLE
President
COMPENSATION
$1M
AGE
44
TENURE
0.5 yrs

Rob Selati

TITLE
Lead Director
COMPENSATION
$192K
AGE
52
TENURE
8.3 yrs

Mike O'Donnell

TITLE
Executive Chairman
COMPENSATION
$3M
AGE
62
TENURE
8.3 yrs

Carla Cooper

TITLE
Director
COMPENSATION
$163K
AGE
67
TENURE
15.2 yrs

Steve King

TITLE
Independent Director
AGE
60
TENURE
1.1 yrs

Giannella Alvarez

TITLE
Independent Director
COMPENSATION
$162K
AGE
58
TENURE
3 yrs

Mary Baglivo

TITLE
Director
COMPENSATION
$129K
AGE
60
TENURE
1.8 yrs

Marie Perry

TITLE
Independent Director
AGE
53
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Feb 18 Sell Susan Mirdamadi Individual 28. Feb 18 28. Feb 18 -8,000 $24.81 $-198,410
X
Management checks
We assess Ruth's Hospitality Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ruth's Hospitality Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Ruth's Hospitality Group Inc (NASDAQ:RUTH): Why Return On Capital Employed Is Important

and looking to gauge the potential return on investment in Ruth's Hospitality Group Inc (NASDAQ:RUTH). … Thus, to understand how your money can grow by investing in Ruth's Hospitality Group, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Ruth's Hospitality Group's Return On Capital Employed

Simply Wall St -

Is Ruth's Hospitality Group Inc (NASDAQ:RUTH) A Smart Choice For Dividend Investors?

Historically, Ruth's Hospitality Group Inc (NASDAQ:RUTH) has been paying a dividend to shareholders. … Let's dig deeper into whether Ruth's Hospitality Group should have a place in your portfolio. … See our latest analysis for Ruth's Hospitality Group

Simply Wall St -

What’s Ahead For Ruth's Hospitality Group Inc (NASDAQ:RUTH)?

is a consumer discretionary company operating in an industry,. … whose sales are driven primarily by consumer sentiment, which is closely linked to employment and wages. … Consumer discretionary analysts are forecasting for the entire industry,

Simply Wall St -

What You Must Know About Ruth's Hospitality Group Inc's (NASDAQ:RUTH) Financial Strength

However, an important fact which most ignore is: how financially healthy is the business? … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Is Ruth's Hospitality Group Inc's (NASDAQ:RUTH) CEO Being Overpaid?

Mike O'Donnell is the CEO of Ruth's Hospitality Group Inc (NASDAQ:RUTH), which has recently grown to a market capitalization of US$895.61m. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor.

Simply Wall St -

Ruth's Hospitality Group Inc (NASDAQ:RUTH): Assessing Capital Returns

and looking to gauge the potential return on investment in Ruth's Hospitality Group Inc (NASDAQ:RUTH). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided.

Simply Wall St -

Interested In Ruth's Hospitality Group Inc (NASDAQ:RUTH)? Here's What Its Recent Performance Looks Like

Below, I will examine Ruth's Hospitality Group Inc's (NASDAQ:RUTH) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. … See our latest analysis for Ruth's Hospitality Group? … Did RUTH beat its long-term earnings growth trend and its industry.

Simply Wall St -

Can Ruth's Hospitality Group Inc's (NASDAQ:RUTH) ROE Continue To Surpass The Industry Average?

and want a simplistic look at the return on Ruth's Hospitality Group Inc (NASDAQ:RUTH) stock. … With an ROE of 37.44%, Ruth's Hospitality Group Inc (NASDAQ:RUTH) outpaced its own industry which delivered a less exciting 13.67% over the past year. … With more debt, RUTH can invest even more and earn more money, thus pushing up its returns.

Simply Wall St -

Only 3 Days Left To Ruth's Hospitality Group Inc (NASDAQ:RUTH)’s Ex-Dividend Date, Should Investors Buy?

Important news for shareholders and potential investors in Ruth's Hospitality Group Inc (NASDAQ:RUTH): The dividend payment of $0.11 per share will be distributed into shareholder on 07 June 2018, and the stock will begin trading ex-dividend at an earlier date, 23 May 2018. … See our latest analysis for Ruth's Hospitality Group 5 checks you should use to assess a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it paying an annual yield above 75% of dividend payers? … Next Steps: Whilst there are few things you may like about Ruth's Hospitality Group from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor.

Simply Wall St -

Interested In Ruth's Hospitality Group Inc (NASDAQ:RUTH)’s Upcoming $0.11 Dividend? You Have 3 Days Left

See our latest analysis for Ruth's Hospitality Group How I analyze a dividend stock If you are a dividend investor, you should always assess these five key metrics: Does it pay an annual yield higher than 75% of dividend payers? … NasdaqGS:RUTH Historical Dividend Yield Mar 3rd 18 How does Ruth's Hospitality Group fare? … Ruth's Hospitality Group has a trailing twelve-month payout ratio of 36.12%, which means that the dividend is covered by earnings.

Simply Wall St -

Company Info

Map
Description

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 November 19, 2018, the company had approximately 156 restaurants worldwide. Ruth's Hospitality Group, Inc. was founded in 1965 and is headquartered in Winter Park, Florida.

Details
Name: Ruth's Hospitality Group, Inc.
RUTH
Exchange: NasdaqGS
Founded: 1965
$733,755,625
29,730,779
Website: http://www.rhgi.com
Address: Ruth's Hospitality Group, Inc.
1030 West Canton Avenue,
Suite 100,
Winter Park,
Florida, 32789,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS RUTH Common Stock Nasdaq Global Select US USD 09. Aug 2005
DB R6R Common Stock Deutsche Boerse AG DE EUR 09. Aug 2005
Number of employees
Current staff
Staff numbers
4,915
Ruth's Hospitality Group employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 02:00
End of day share price update: 2019/02/15 00:00
Last estimates confirmation: 2019/01/07
Last earnings filing: 2018/11/02
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.