TEXAS ROADHOUSE INC (TXRH) Stock Fundamental Analysis
NASDAQ:TXRH - Nasdaq - US8826811098 - Common Stock
TXRH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. TXRH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TXRH is not valued too expensively and it also shows a decent growth rate. This makes TXRH very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year TXRH was profitable.
TXRH had a positive operating cash flow in the past year.
TXRH had positive earnings in each of the past 5 years.
Each year in the past 5 years TXRH had a positive operating cash flow.
1.2 Ratios
TXRH has a better Return On Assets (13.39%) than 90.84% of its industry peers.
With an excellent Return On Equity value of 29.82%, TXRH belongs to the best of the industry, outperforming 83.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.61%, TXRH belongs to the top of the industry, outperforming 88.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TXRH is above the industry average of 10.54%.
The last Return On Invested Capital (17.61%) for TXRH is above the 3 year average (14.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.39% | ||
| ROE | 29.82% | ||
| ROIC | 17.61% |
ROA(3y)10.45%
ROA(5y)8.3%
ROE(3y)25.51%
ROE(5y)19.79%
ROIC(3y)14.52%
ROIC(5y)11.3%
1.3 Margins
With a decent Profit Margin value of 7.65%, TXRH is doing good in the industry, outperforming 66.41% of the companies in the same industry.
In the last couple of years the Profit Margin of TXRH has remained more or less at the same level.
TXRH has a Operating Margin (9.08%) which is in line with its industry peers.
TXRH's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 66.64%, TXRH belongs to the best of the industry, outperforming 80.15% of the companies in the same industry.
TXRH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.08% | ||
| PM (TTM) | 7.65% | ||
| GM | 66.64% |
OM growth 3Y91.55%
OM growth 5Y-0.01%
PM growth 3Y71.49%
PM growth 5Y0.45%
GM growth 3Y-0.93%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
TXRH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TXRH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TXRH has been reduced compared to 5 years ago.
There is no outstanding debt for TXRH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 7.31 indicates that TXRH is not in any danger for bankruptcy at the moment.
The Altman-Z score of TXRH (7.31) is better than 93.13% of its industry peers.
TXRH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.31 |
ROIC/WACC1.91
WACC9.24%
2.3 Liquidity
A Current Ratio of 0.49 indicates that TXRH may have some problems paying its short term obligations.
TXRH has a worse Current ratio (0.49) than 74.05% of its industry peers.
A Quick Ratio of 0.43 indicates that TXRH may have some problems paying its short term obligations.
With a Quick ratio value of 0.43, TXRH is not doing good in the industry: 75.57% of the companies in the same industry are doing better.
The current and quick ratio evaluation for TXRH is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
TXRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.10%, which is quite impressive.
Measured over the past years, TXRH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.54% on average per year.
Looking at the last year, TXRH shows a quite strong growth in Revenue. The Revenue has grown by 13.91% in the last year.
Measured over the past years, TXRH shows a quite strong growth in Revenue. The Revenue has been growing by 13.51% on average per year.
EPS 1Y (TTM)34.1%
EPS 3Y115.92%
EPS 5Y15.54%
EPS Q2Q%32.63%
Revenue 1Y (TTM)13.91%
Revenue growth 3Y24.53%
Revenue growth 5Y13.51%
Sales Q2Q%13.48%
3.2 Future
Based on estimates for the next years, TXRH will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.87% on average per year.
Based on estimates for the next years, TXRH will show a small growth in Revenue. The Revenue will grow by 5.56% on average per year.
EPS Next Y43.68%
EPS Next 2Y26.99%
EPS Next 3Y22.28%
EPS Next 5Y18.87%
Revenue Next Year15.54%
Revenue Next 2Y12.49%
Revenue Next 3Y11.37%
Revenue Next 5Y5.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.28, TXRH can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TXRH is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.29. TXRH is around the same levels.
TXRH is valuated rather expensively with a Price/Forward Earnings ratio of 24.92.
The rest of the industry has a similar Price/Forward Earnings ratio as TXRH.
The average S&P500 Price/Forward Earnings ratio is at 24.44. TXRH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.28 | ||
| Fwd PE | 24.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXRH indicates a slightly more expensive valuation: TXRH is more expensive than 66.41% of the companies listed in the same industry.
TXRH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.64 | ||
| EV/EBITDA | 18.91 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TXRH may justify a higher PE ratio.
TXRH's earnings are expected to grow with 22.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)2.01
EPS Next 2Y26.99%
EPS Next 3Y22.28%
5. Dividend
5.1 Amount
TXRH has a Yearly Dividend Yield of 1.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.98, TXRH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, TXRH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of TXRH is nicely growing with an annual growth rate of 18.02%!
TXRH has been paying a dividend for at least 10 years, so it has a reliable track record.
TXRH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)18.02%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TXRH pays out 40.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TXRH is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP40.75%
EPS Next 2Y26.99%
EPS Next 3Y22.28%
TEXAS ROADHOUSE INC
NASDAQ:TXRH (1/21/2025, 8:00:02 PM)
After market: 182.04 0 (0%)182.04
+3.09 (+1.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.74%
Inst Owner Change-0.64%
Ins Owners0.43%
Ins Owner Change0.81%
Market Cap12.14B
Analysts74.86
Price Target201.59 (10.74%)
Short Float %2.44%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.2
Dividend Growth(5Y)18.02%
DP40.75%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.36%
Min EPS beat(2)-6.08%
Max EPS beat(2)6.8%
EPS beat(4)2
Avg EPS beat(4)0.5%
Min EPS beat(4)-6.08%
Max EPS beat(4)6.8%
EPS beat(8)2
Avg EPS beat(8)-4.22%
EPS beat(12)6
Avg EPS beat(12)-0.24%
EPS beat(16)8
Avg EPS beat(16)0.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.95%
Min Revenue beat(2)-2.08%
Max Revenue beat(2)-1.82%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-2.08%
Max Revenue beat(4)-1.66%
Revenue beat(8)1
Avg Revenue beat(8)-1.76%
Revenue beat(12)1
Avg Revenue beat(12)-1.5%
Revenue beat(16)3
Avg Revenue beat(16)-1.27%
PT rev (1m)1.01%
PT rev (3m)7.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.91%
EPS NY rev (1m)0%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.28 | ||
| Fwd PE | 24.92 | ||
| P/S | 2.38 | ||
| P/FCF | 35.64 | ||
| P/OCF | 17.59 | ||
| P/B | 9.28 | ||
| P/tB | 10.68 | ||
| EV/EBITDA | 18.91 |
EPS(TTM)5.82
EY3.2%
EPS(NY)7.31
Fwd EY4.01%
FCF(TTM)5.11
FCFY2.81%
OCF(TTM)10.35
OCFY5.68%
SpS76.45
BVpS19.61
TBVpS17.04
PEG (NY)0.72
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.39% | ||
| ROE | 29.82% | ||
| ROCE | 20.25% | ||
| ROIC | 17.61% | ||
| ROICexc | 19.2% | ||
| ROICexgc | 20.91% | ||
| OM | 9.08% | ||
| PM (TTM) | 7.65% | ||
| GM | 66.64% | ||
| FCFM | 6.68% |
ROA(3y)10.45%
ROA(5y)8.3%
ROE(3y)25.51%
ROE(5y)19.79%
ROIC(3y)14.52%
ROIC(5y)11.3%
ROICexc(3y)16.26%
ROICexc(5y)12.58%
ROICexgc(3y)17.81%
ROICexgc(5y)13.78%
ROCE(3y)16.69%
ROCE(5y)13%
ROICexcg growth 3Y116.65%
ROICexcg growth 5Y-4.45%
ROICexc growth 3Y116.63%
ROICexc growth 5Y-3.27%
OM growth 3Y91.55%
OM growth 5Y-0.01%
PM growth 3Y71.49%
PM growth 5Y0.45%
GM growth 3Y-0.93%
GM growth 5Y-0.61%
F-Score8
Asset Turnover1.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 206.52% | ||
| Cap/Sales | 6.86% | ||
| Interest Coverage | 521.42 | ||
| Cash Conversion | 109.18% | ||
| Profit Quality | 87.32% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 7.31 |
F-Score8
WACC9.24%
ROIC/WACC1.91
Cap/Depr(3y)188.06%
Cap/Depr(5y)176.14%
Cap/Sales(3y)6.47%
Cap/Sales(5y)6.73%
Profit Quality(3y)93.08%
Profit Quality(5y)122.75%
High Growth Momentum
Growth
EPS 1Y (TTM)34.1%
EPS 3Y115.92%
EPS 5Y15.54%
EPS Q2Q%32.63%
EPS Next Y43.68%
EPS Next 2Y26.99%
EPS Next 3Y22.28%
EPS Next 5Y18.87%
Revenue 1Y (TTM)13.91%
Revenue growth 3Y24.53%
Revenue growth 5Y13.51%
Sales Q2Q%13.48%
Revenue Next Year15.54%
Revenue Next 2Y12.49%
Revenue Next 3Y11.37%
Revenue Next 5Y5.56%
EBIT growth 1Y36.02%
EBIT growth 3Y138.54%
EBIT growth 5Y13.5%
EBIT Next Year92.93%
EBIT Next 3Y34.03%
EBIT Next 5Y26.71%
FCF growth 1Y21.98%
FCF growth 3Y42.07%
FCF growth 5Y2.05%
OCF growth 1Y34%
OCF growth 3Y34.85%
OCF growth 5Y9.87%