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NEW YORK (TheStreet) -- Shares of RUBY TUESDAY INC (RT) stock were down today by $0.04 (0.51%) as of the close of trading. By the end of trading, 417.13K shares of RUBY TUESDAY INC exchanged hands as compared to its average daily volume of 563.40K shares. The stock ranged in price between $7.79 to $7.90 after opening the day at $7.90 as compared to the previous trading day's close of $7.89. Overall, RUBY TUESDAY INC lagged the S&P 500 which was up 0.04%. Important items of note for RUBY TUESDAY INC and possible rationale for parts of today's stock move go as follows:
TheStreet Ratings team rates RUBY TUESDAY INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RUBY TUESDAY INC (RT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 111.11% and other important driving factors, this stock has surged by 31.71% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 111.5% when compared to the same quarter one year prior, rising from -$22.24 million to $2.57 million.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that RT's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, RUBY TUESDAY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for RUBY TUESDAY INC is rather low; currently it is at 18.13%. Regardless of RT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RT's net profit margin of 0.91% is significantly lower than the industry average.
- You can view the full analysis from the report here: RT Ratings Report