NasdaqGS:RUTH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 Analysis

Reasonable growth potential with imperfect balance sheet.


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

22.8%

RUTH

4.3%

US Hospitality

1.9%

US Market


1 Year Return

-60.8%

RUTH

-23.6%

US Hospitality

16.4%

US Market

Return vs Industry: RUTH underperformed the US Hospitality industry which returned -24.3% over the past year.

Return vs Market: RUTH underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

RUTHIndustryMarket
7 Day22.8%4.3%1.9%
30 Day21.2%4.4%4.5%
90 Day-9.0%16.7%17.6%
1 Year-60.0%-60.8%-22.0%-23.6%18.9%16.4%
3 Year-56.3%-58.5%-15.9%-21.5%44.1%34.8%
5 Year-46.4%-50.8%-2.6%-13.1%75.3%56.3%

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?

2.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RUTH ($8.22) is trading above our estimate of fair value ($1.11)

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


Price To Earnings Ratio

PE vs Industry: RUTH is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.

PE vs Market: RUTH is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RUTH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RUTH is overvalued based on its PB Ratio (2.6x) compared to the US Hospitality industry average (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 5 analysts?

132.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RUTH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: RUTH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RUTH's is expected to become profitable in the next 3 years.

Revenue vs Market: RUTH's revenue (14.7% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: RUTH's revenue (14.7% 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?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUTH is currently unprofitable.

Growing Profit Margin: RUTH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RUTH is unprofitable, but has reduced losses over the past 5 years at a rate of 0.2% per year.

Accelerating Growth: Unable to compare RUTH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RUTH is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-41.9%).


Return on Equity

High ROE: RUTH has a negative Return on Equity (-2.26%), as it is currently unprofitable.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: RUTH's short term assets ($119.5M) exceed its short term liabilities ($94.2M).

Long Term Liabilities: RUTH's short term assets ($119.5M) do not cover its long term liabilities ($365.2M).


Debt to Equity History and Analysis

Debt Level: RUTH's debt to equity ratio (125.6%) is considered high.

Reducing Debt: RUTH's debt to equity ratio has increased from 0.1% to 125.6% over the past 5 years.

Debt Coverage: RUTH's debt is well covered by operating cash flow (34.8%).

Interest Coverage: RUTH is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RUTH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RUTH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RUTH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RUTH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RUTH is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RUTH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Cheryl Henry (46 yo)

2yrs

Tenure

US$2,833,228

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 ($USD2.83M) is above average for companies of similar size in the US market ($USD1.31M).

Compensation vs Earnings: Cheryl's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael O'Donnell
Executive Chairman9.83yrsUS$2.59m3.15%
$ 8.9m
Cheryl Henry
President2yrsUS$2.83m1.51%
$ 4.3m
Arne Haak
Executive VP & CFO9yrsUS$1.02m0.95%
$ 2.7m
Susan Mirdamadi
Executive VP & Chief Administrative Officer1.83yrsUS$1.26m0.42%
$ 1.2m
Alice Givens
Chief Compliance Officer4.5yrsUS$823.23k0.14%
$ 383.7k
Michael Hynes
Vice President of Accounting5.33yrsno datano data
David Hyatt
Senior VP & Chief People Officer1.17yrsno data0.041%
$ 114.3k
Peter Beaudrault
Vice President of Franchise Operations & Development3.25yrsUS$571.97kno data
Mark Taylor
Vice President of Financial Planning & Analysisno datano datano data

2.6yrs

Average Tenure

57yo

Average Age

Experienced Management: RUTH's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael O'Donnell
Executive Chairman9.83yrsUS$2.59m3.15%
$ 8.9m
Cheryl Henry
President2yrsUS$2.83m1.51%
$ 4.3m
Robin Selati
Independent Lead Director9.83yrsUS$194.97k0.028%
$ 77.8k
Carla Cooper
Independent Director16.67yrsUS$174.97k0.11%
$ 312.6k
Stephen King
Independent Director2.58yrsUS$180.13k0.012%
$ 33.3k
Mary Baglivo
Independent Director3.25yrsUS$167.53k0.025%
$ 70.7k
Marie Perry
Independent Director2yrsUS$164.39k0.0088%
$ 24.8k
Giannella Alvarez
Independent Director4.5yrsUS$170.12k0.044%
$ 123.2k

3.9yrs

Average Tenure

61yo

Average Age

Experienced Board: RUTH's board of directors are considered experienced (3.9 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 been diluted in the past year, with total shares outstanding growing by 17%.


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$281.539m
  • Shares outstanding: 34.25m
  • 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. The company’s restaurants offer food and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 23:42
End of Day Share Price2020/08/07 00:00
Earnings2020/06/28
Annual Earnings2019/12/29


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.