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.

Snowflake

Fundamentals

Solid track record second-rate dividend payer.

Risks

  • Ruth's Hospitality Group has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

0.1%

NasdaqGS:RUTH

2.5%

US Hospitality

2.1%

US Market


1 Year Return

-38.2%

NasdaqGS:RUTH

-4.7%

US Hospitality

-0.04%

US Market

RUTH underperformed the Hospitality industry which returned -4.2% over the past year.

RUTH underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

RUTHIndustryMarket
7 Day0.1%2.5%2.1%
30 Day-11.7%-5.4%-3.2%
90 Day-18.0%1.5%2.8%
1 Year-36.9%-38.2%-2.4%-4.7%2.2%-0.04%
3 Year34.7%27.3%45.5%36.3%41.5%32.3%
5 Year92.8%76.5%34.1%19.4%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

17%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ruth's Hospitality Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Ruth's Hospitality Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Ruth's Hospitality Group is good value based on earnings compared to the US Hospitality industry average.

Ruth's Hospitality Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ruth's Hospitality Group is poor value based on expected growth next year.


Price Based on Value of Assets

Ruth's Hospitality Group is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is Ruth's Hospitality Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ruth's Hospitality Group's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

Ruth's Hospitality Group's earnings are expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).

Ruth's Hospitality Group's revenue growth is positive but not above the United States of America market average.

Ruth's Hospitality Group's earnings growth is positive but not above the United States of America market average.

Ruth's Hospitality Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Ruth's Hospitality Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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


Past Earnings Growth Analysis

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 (20.5% vs 9.5%)

Ruth's Hospitality Group's earnings growth has exceeded the US Hospitality industry average in the past year (20.5% vs -8.7%).


Return on Equity

Ruth's Hospitality Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Ruth's Hospitality Group used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Ruth's Hospitality Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

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.


Debt to Equity History and Analysis

Ruth's Hospitality Group's level of debt (45.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (20.8% vs 45.9% today).

Debt is well covered by operating cash flow (162%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 30.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.67%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ruth's Hospitality Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Ruth's Hospitality Group's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

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 (3x coverage).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Cheryl Henry (45yo)

1.0yrs

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

Cheryl's remuneration is higher than average for companies of similar size in United States of America.

Cheryl's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

57yo

Average Age

The tenure for the Ruth's Hospitality Group management team is about average.


Board Age and Tenure

2.9yrs

Average Tenure

60yo

Average Age

The average tenure for the Ruth's Hospitality Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Pete Beaudrault (64yo)

    Vice President of Franchise Operations & Development

    • Tenure: 2.3yrs
    • Compensation: US$571.97k
  • Mike O'Donnell (63yo)

    Executive Chairman

    • Tenure: 8.8yrs
    • Compensation: US$2.86m
  • Arne Haak (51yo)

    Executive VP & CFO

    • Tenure: 8.0yrs
    • Compensation: US$1.13m
  • Susie Gorsline

    Chief People Officer

    • Tenure: 3.5yrs
  • Cheryl Henry (45yo)

    President

    • Tenure: 1.0yrs
    • Compensation: US$6.11m
  • Alice Givens

    Chief Compliance Officer

    • Tenure: 3.5yrs
  • Michael Hynes

    Vice President of Accounting

    • Tenure: 4.3yrs
  • Susan Mirdamadi (57yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 0.8yrs
    • Compensation: US$922.48k
  • Mark Taylor

    Vice President of Financial Planning & Analysis

    • Tenure: 0.0yrs

Board Members

  • Rob Selati (53yo)

    Lead Director

    • Tenure: 8.8yrs
    • Compensation: US$191.98k
  • Carla Cooper (68yo)

    Director

    • Tenure: 15.7yrs
    • Compensation: US$166.98k
  • Steve King (61yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$171.29k
  • Mike O'Donnell (63yo)

    Executive Chairman

    • Tenure: 8.8yrs
    • Compensation: US$2.86m
  • Mary Baglivo (61yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$162.18k
  • Marie Perry (54yo)

    Independent Director

    • Tenure: 1.0yrs
    • Compensation: US$63.94k
  • Cheryl Henry (45yo)

    President

    • Tenure: 1.0yrs
    • Compensation: US$6.11m
  • Giannella Alvarez (59yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$164.29k

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$569.835m
  • Shares outstanding: 29.27m
  • 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 p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:55
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
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.