Ruths Story

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RUTH -- USA Stock  

USD 23.40  1.16  4.72%

Ruths Hospitality Average Equity is most likely to decrease significantly in the upcoming years. The last year's value of Average Equity was reported at 50.24 Million. The current Invested Capital Average is estimated to increase to about 162.3 M, while Net Income Per Employee is projected to decrease to 5,023. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to concentrate on Ruths Hospitality. We will analyze why it could be a much better year for Ruths Hospitality shareholders. In this post, I will also go over some essential variables affecting Ruths Hospitality's products, and show how it may impact Ruths Hospitality outlook for active traders this year.
Published over a month ago
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Is Ruths Hospitality overvalued?
On a scale of 0 to 100, Ruths Hospitality holds a performance score of 17. The company holds a Beta of 1.5394, which implies a somewhat significant risk relative to the market. Let's try to break down what Ruths's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Ruths Hospitality will likely underperform. Although it is vital to follow Ruths Hospitality current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-one technical indicators for Ruths Hospitality, which you can use to evaluate the performance of the company. Please employ Ruths Hospitality jensen alpha and downside variance to make a quick decision on whether Ruths Hospitality historical price patterns will revert.

And What about 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 $0.18 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 2021
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, 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 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.

How Ruths utilizes its cash?

To perform a cash flow analysis of Ruths Hospitality, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ruths Hospitality is receiving and how much cash it distributes out in a given period. The Ruths Hospitality cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Ruths Hospitality Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 68.69 Million

Payment of 419 shares by Hyatt David of Ruths Hospitality subject to Rule 16b-3

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 payment of ruth by Hyatt David, Chief People Officer, on 16th of March 2021. This event was filed by Ruths Hospitality Group I with SEC on 2021-03-16. 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.

Detailed Perspective On Ruths Hospitality

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 168.89 percent. This implies that the company is making $1.69 for each dollar of assets. An increasing asset utilization means that Ruths Hospitality is more efficient with each dollar of assets it utilizes for everyday operations.

Momentum Analysis of Ruths Hospitality suggests possible reversal in April

Downside deviation is down to 2.49. It may hint to a possible volatility drop.
As of the 5th of March, Ruths Hospitality holds the Risk Adjusted Performance of 0.1722, semi deviation of 2.0, and Coefficient Of Variation of 470.1. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Ruths Hospitality, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Ruths Hospitality, which can be compared to its competitors. Please check Ruths Hospitality jensen alpha and downside variance to decide if Ruths Hospitality is priced some-what accurately, providing market reflects its current price of 22.88 per share. Given that Ruths Hospitality has jensen alpha of 0.4444, we recommend you to check out Ruths Hospitality's recent market performance to make sure the company can sustain itself at a future point.

Our Final Take On Ruths Hospitality

While many of the other players within the restaurants industry are still a little expensive, even after the recent corrections, Ruths Hospitality may offer a potential longer-term growth to stockholders. Taking everything into account, as of the 5th of March 2021, our current 30 days 'Buy-vs-Sell' recommendation on the company is Strong Buy. However, we believe Ruths Hospitality is overvalued with below average chance of distress for the next two years.

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 Gabriel Shpitalnik do not own shares of Ruths Hospitality. Please refer to our Terms of Use for any information regarding our disclosure principles.

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