Ruth's Hospitality Group, Inc.
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RUTHS HOSPITALITY GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its subsector. RUTHS HOSPITALITY GROUP INC has average liquidity. Currently, the Quick Ratio is 1.11 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 14.12% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY20 | Q4 FY19 |
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Net Sales ($mil) | 77.37 | 135.03 |
EBITDA ($mil) | 10.63 | 24.3 |
EBIT ($mil) | 5.32 | 18.4 |
Net Income ($mil) | 1.42 | 14.46 |
Balance Sheet | Q4 FY20 | Q4 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 95.4 | 5.57 |
Total Assets ($mil) | 542.67 | 496.88 |
Total Debt ($mil) | 345.51 | 301.61 |
Equity ($mil) | 107.44 | 94.15 |
Profitability | Q4 FY20 | Q4 FY19 |
---|---|---|
Gross Profit Margin | 29.61 | 28.42 |
EBITDA Margin | 13.73 | 17.99 |
Operating Margin | 6.88 | 13.63 |
Sales Turnover | 0.51 | 0.94 |
Return on Assets | -4.66 | 8.49 |
Return on Equity | -23.54 | 44.83 |
Debt | Q4 FY20 | Q4 FY19 |
---|---|---|
Current Ratio | 1.2 | 0.37 |
Debt/Capital | 0.76 | 0.76 |
Interest Expense | 1.34 | 0.74 |
Interest Coverage | 3.97 | 24.97 |
Share Data | Q4 FY20 | Q4 FY19 |
---|---|---|
Shares outstanding (mil) | 34.19 | 28.35 |
Div / share | 0.0 | 0.13 |
EPS | 0.04 | 0.5 |
Book value / share | 3.14 | 3.32 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 458045.0 | 792677.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 7.89 indicates a significant premium versus the S&P 500 average of 4.31 and a significant discount versus the subsector average of 20.26. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the subsector average, indicating a discount. After reviewing these and other key valuation criteria, RUTHS HOSPITALITY GROUP INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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RUTH NM | Peers 375.38 | RUTH 42.23 | Peers 185.35 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. RUTH's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RUTH is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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RUTH 24.81 | Peers 55.52 | RUTH NA | Peers 1.13 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. RUTH is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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RUTH 7.89 | Peers 20.26 | RUTH -157.63 | Peers -255.55 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RUTH is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. RUTH is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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RUTH 3.05 | Peers 10.29 | RUTH -40.66 | Peers -32.92 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RUTH is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. RUTH significantly trails its peers on the basis of sales growth. |
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