Now trading at a price of $21.39, Ruth's Hospitality has moved 0.1% so far today.
Ruth's Hospitality returned gains of 16.3% last year, with its stock price reaching a high of $21.5 and a low of $14.65. Over the same period, the stock outperformed the S&P 500 index by 12.0%. More recently, the company's 50-day average price was $17.19. Ruth's Hospitality Group, Inc., together with its subsidiaries, develops, operates, and franchises fine dining restaurants under the Ruth's Chris Steak House name. Based in Winter Park, FL, the small-cap Consumer Discretionary company has 4,768 full time employees. Ruth's Hospitality has not offered a dividend during the last year.
Low Leverage Levels but a Declining EPS Growth Trend:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (k) | $468,026 | $277,748 | $429,123 | $505,858 |
| Gross Margins | 26.9% | 18.5% | 28.2% | 26.3% |
| Operating Margins | 11.2% | -4.4% | 12.3% | 10.6% |
| Net Margins | 9.02% | -9.11% | 9.85% | 7.63% |
| Net Income (k) | $42,206 | -$25,294 | $42,275 | $38,621 |
| Net Interest Income | -$2,197 | -$4,681 | -$3,478 | -$1,507 |
| Depreciation & Amort. | -$21,354 | -$21,964 | -$20,487 | -$22,103 |
| Earnings Per Share | $1.44 | -$0.8 | $1.23 | $1.15 |
| EPS Growth | n/a | -155.56% | 253.75% | -6.5% |
| Diluted Shares (k) | 29,377 | 31,684 | 34,468 | 32,133 |
| Free Cash Flow (k) | $41,242 | $9,465 | $61,740 | $20,243 |
| Capital Expenditures | -$31,668 | -$10,620 | -$19,651 | -$46,958 |
| Net Current Assets (k) | -$360,720 | -$304,936 | -$254,574 | -$307,660 |
| Current Ratio | 0.37 | 1.2 | 1.08 | 0.59 |
| Long Term Debt (k) | $64,000 | $115,000 | $70,000 | $30,000 |
| Net Debt / EBITDA | 0.98 | -6.17 | -0.07 | 0.34 |
Ruth's Hospitality's financial statements include several red flags such as slimmer gross margins than its peers, weak operating margins with a stable trend, and declining EPS growth. Additionally, the firm has an unconvincing cash flow history. On the other hand, the company benefits from low leverage and weak revenue growth and increasing reinvestment in the business.
Ruth's Hospitality's Valuation Is in Line With Its Sector Averages:
Ruth's Hospitality has a trailing twelve month P/E ratio of 14.9, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $1.31, the company has a forward P/E ratio of 13.1. The -1.9% compound average growth rate of Ruth's Hospitality's historical and projected earnings per share yields a PEG ratio of -7.97. This indicates that its shares are overvalued.Furthermore, Ruth's Hospitality is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.01 is higher than the sector average of 3.12. The company's shares are currently trading 152.1% above their Graham number.
Ruth's Hospitality Is the Subject of Mixed Market Indicators:
The 2 analysts following Ruth's Hospitality have set target prices ranging from $17.0 to $21.5 per share, for an average of $19.25 with a buy rating. As of April 2023, the company is trading -10.7% away from its average target price, indicating that there is an analyst belief that shares are overpriced.
Ruth's Hospitality has an above average percentage of its shares sold short because 8.4% of the company's shares are sold short. Institutions own 89.5% of the company's shares, and the insider ownership rate stands at 6.14%, suggesting a decent amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 15% stake in the company is worth $106,325,537.
