This firm currently holds 362.62
M in liabilities with Debt to Equity (D/E) ratio of 3.47, implying Ruths Hospitality greatly relies on financing operations through barrowing. The company has a current ratio of 1.28, suggesting that it may have difficulties to pay its financial obligations when due. Ruths Hospitality is OVERVALUED at 22.02 per share with modest projections ahead.
We determine the current worth of Ruths Hospitality Group using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ruths Hospitality based exclusively on its
fundamental and basic
technical indicators. By analyzing Ruths Hospitality's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Ruths Hospitality's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Ruths Hospitality. We calculate exposure to Ruths Hospitality's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Ruths Hospitality's related companies.
Ruths Hospitality Investment Alerts
Ruths investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Ruths Hospitality Group performance across your portfolios.Please check all
investment alerts for Ruths
Ruths Hospitality Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Ruths value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ruths Hospitality competition to find
correlations between indicators driving the intrinsic value of Ruths.
Detailed Perspective On Ruths Hospitality
The current price rise of Ruths Hospitality created some momentum for stockholders as it was traded today as low as
21.82 and as high as
24.26 per share. The company directors and management may have good odds in positioning the company resources to exploit market volatility in
April. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.42. The current volatility is consistent with the ongoing market swings in
February 2021 as well as with Ruths Hospitality unsystematic, company-specific events.
Margins Breakdown
Ruths profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Ruths Hospitality itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Ruths Hospitality profit margins.
| Operating Margin | 9.48 |
| EBITDA Margin | 12.79 |
| Gross Margin | 23.29 |
| Profit Margin | 6.21 |
Ruths Hospitality Average Assets is decreasing over the last 5 years. The previous year's value of Ruths Hospitality Average Assets was 171,929,746. Moreover, Ruths Hospitality Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 6 years. The previous year's value of Ruths Hospitality Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 52,194,032.
Are Ruths Hospitality technical ratios showing a reversion?
The market risk adjusted performance is down to 0.34 as of today. Ruths Hospitality currently demonstrates below-average downside deviation. It has Information Ratio of 0.19 and Jensen Alpha of 0.44. However, we advise investors to further question Ruths Hospitality expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ruths Hospitality's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ruths Hospitality's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Takeaway
While many of the other players under the restaurants industry are still a bit expensive, Ruths Hospitality may offer a potential longer-term growth to stockholders. The inconsistency in the assessment between current Ruths valuation and our trade advice on Ruths Hospitality is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ruths Hospitality.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Ruths Hospitality Group. Please refer to our
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