Home Sectors Consumer Cyclical Valuation Today: Ruth’s Hospitality Group (NASDAQ: RUTH)

Valuation Today: Ruth’s Hospitality Group (NASDAQ: RUTH)

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Ruth’s Hospitality Group is part of the consumer cyclical sector and is in the restaurants industry. The company CEO is Cheryl Janet Henry. Ruth’s Hospitality Group Inc operates and franchises approximately 150 fine-dining restaurants under Ruth’s Chris Steak House brand in US. The company also has several franchised restaurants in Canada, Mexico, Central America, Asia, and the Middle East.

Previous Intraday Trading Performance:

The RUTH stock showed a previous change of 0.79% with an open at 22.81 and a close of 22.87. It reached an intraday high of 23.08 and a low of 22.81.

SeekingAlpha:  Restaurant sales bounce back in May

Liquidity:

The stock has a market cap of $697.1m with 30.5m shares outstanding, of which the float is 26.5m shares. Trading volume reached 90,751 shares compared to its average volume of 197,214 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Ruth’s Hospitality Group shares returned -0.31% and in the past 30 trading days it returned -13.14%. Over three months, it changed -9.38%. In one year it has changed -14.10% and within that year its 52-week high was 33.95 and its 52-week low was 21.70. RUTH stock is 5.39% above its 52 Week Low.

Our calculations show a 200 day moving average of 25.74 and a 50 day moving average of 24.72. Currently RUTH stock is trading -11.15% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Restaurant sales bounce back in May

Earnings:

The last annual fiscal EPS for the company was reported at 1.39 that ended on 31st of December 2018, which according to the previous close, that is a PE of 16.45. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.45. The TTM EPS is 1.40, which comes to a TTM PE of 16.34. Historically, the PE high was 39.60 and the PE low was 15.60. If the stock reached its PE low, that would represent a price of 21.83, which is a decrease of -4.53%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 05/03/2019): 0.47
4thQtr of 2018 (Reported on 02/22/2019): 0.49
3rdQtr of 2018 (Reported on 11/02/2018): 0.12
2ndQtr of 2018 (Reported on 08/10/2018): 0.32
1stQtr of 2018 (Reported on 05/04/2018): 0.45

The dividend per share is currently 0.52, which is a dividend yield of 2.27%. Also, the payout ratio is 37.14%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 25.20, which means it is possibly undervalued and has a margin of safety of 9.24%.

Indicators to Watch:

The current calculated beta is 0.62.

SeekingAlpha:  Tailored Brands, Inc. (TLRD) CEO Dinesh Lathi on Q1 2019 Results – Earnings Call Transcript

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 47.02%, return on assets is 13.51%, profit margin is 9.46%, price-to-sales is 1.54 and price-to-book is 7.01.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 5  :Past Performance Score
 3  :Financial Strength Score
 0  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.