Ruths Story

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RUTH -- USA Stock  

USD 16.05  0.50  3.02%

It looks like Restaurant Brands will continue to recover much faster as its share price surged up 0.61% today to Ruths Hospitality's 8.8015%. While some baby boomers are getting worried about consumer cyclical space, we are going to concentrate on both, Ruths Hospitality and Restaurant Brands as potential mid-run investments. We are going to examine some of the competitive aspects of both Ruths and Restaurant.
Published over three weeks ago
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What should I exit first Ruths (NASDAQ:RUTH) or Restaurant Brands?
By analyzing existing basic indicators between Ruths Hospitality and Restaurant, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Restaurant with a short position in Ruths Hospitality. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ruths Hospitality has an asset utilization ratio of 188.82 percent. This implies that the company is making $1.89 for each dollar of assets. An increasing asset utilization means that Ruths Hospitality Group is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Ruths or McDonalds is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Ruths Hospitality dividends

A dividend is the distribution of a portion of Ruths Hospitality earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Ruths Hospitality dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Ruths one year expected dividend income is about $0.22 per share.
Ruths Hospitality Dividends per Basic Common Share is most likely to slightly decrease in the upcoming years. The last year's value of Dividends per Basic Common Share was reported at 0.11.
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact32.7 M35.3 M
Payment of Dividends and Other Cash Distributions-1.3 M-1.4 M
Dividend Yield 0.0072  0.008968 
Dividends per Basic Common Share 0.11  0.14 
Investing in stocks that pay dividends, such as stock of Ruths Hospitality Group, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Ruths Hospitality must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Ruths Hospitality. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Ruths Hospitality's Liquidity

Ruths Hospitality financial leverage refers to using borrowed capital as a funding source to finance Ruths Hospitality Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ruths Hospitality financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Ruths Hospitality's total debt and its cash.

Correlation Between Ruths and McDonalds

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Ruths Hospitality together with similar or unrelated positions with a negative correlation. For example, you can also add McDonalds to your portfolio. If McDonalds is not perfectly correlated to Ruths Hospitality it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Ruths Hospitality for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between RUTH and MCD for more information.

Ruths Hospitality exotic insider transaction detected

Legal trades by Ruths Hospitality insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Ruths insider trading alert for general transaction of common stock by Michael ODonnell, Executive Chairman, on 20th of July 2020. This event was filed by Ruths Hospitality Group I with SEC on 2020-07-20. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Ruths Hospitality revenue. Based on the latest financial disclosure, Ruths Hospitality Group reported 375 M of revenue. This is 94.74% lower than that of the Consumer Cyclical sector and 85.48% lower than that of the Restaurants industry. The revenue for all United States stocks is 96.03% higher than that of the firm. As for Restaurant Brands we see revenue of 5.21 B, which is 101.79% higher than that of the Restaurants

2.6 B
5.2 B
RUTH375 Million4.59
Sector2.58 Billion31.61
QSR5.21 Billion63.79

Over 3 percent rise for Ruths Hospitality. What does it mean for stockholders?

Current variance is at 18.97. Ruths Hospitality Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect Ruths Hospitality Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Ruths Hospitality future alpha.

Our Takeaway on Ruths Hospitality Investment

While some other companies under the restaurants industry are still a bit expensive, Ruths Hospitality may offer a potential longer-term growth to stockholders. To conclude, as of the 30th of October 2020, our research shows that Ruths Hospitality is a rather somewhat reliable investment opportunity with a below average chance of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our latest 30 days 'Buy-Sell' recommendation on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Ruths Hospitality Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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