Why TEXAS ROADHOUSE INC (NASDAQ:TXRH) qualifies as a quality stock.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TEXAS ROADHOUSE INC (NASDAQ:TXRH) is suited for quality investing. Investors should of course do their own research, but we spotted TEXAS ROADHOUSE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:TXRH highlighted

• TEXAS ROADHOUSE INC has achieved substantial revenue growth over the past 5 years, with a 14.28% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• TEXAS ROADHOUSE INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 39.81% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of TEXAS ROADHOUSE INC stands at 0.0, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• TEXAS ROADHOUSE INC exhibits impressive Profit Quality (5-year) with a 123.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• TEXAS ROADHOUSE INC has consistently achieved strong EBIT growth over the past 5 years, with a 19.65% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• TEXAS ROADHOUSE INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NASDAQ:TXRH

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall TXRH gets a fundamental rating of 6 out of 10. We evaluated TXRH against 135 industry peers in the Hotels, Restaurants & Leisure industry. TXRH has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, TXRH is valued expensive at the moment.

Check the latest full fundamental report of TXRH for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.