TEXAS ROADHOUSE INC (TXRH) Stock Fundamental Analysis
NASDAQ:TXRH - Nasdaq - US8826811098 - Common Stock - Currency: USD
Taking everything into account, TXRH scores 5 out of 10 in our fundamental rating. TXRH was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. While TXRH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TXRH is valied quite expensively at the moment, while it does show a decent growth rate.
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 4 of the past 5 years.
Of the past 5 years TXRH 4 years had a positive operating cash flow.
1.2 Ratios
TXRH has a Return On Assets of 13.39%. This is amongst the best in the industry. TXRH outperforms 90.84% of its industry peers.
Looking at the Return On Equity, with a value of 29.82%, TXRH belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
The Return On Invested Capital of TXRH (17.61%) is better than 87.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXRH is above the industry average of 10.79%.
The 3 year average ROIC (14.52%) for TXRH is below the current ROIC(17.61%), indicating increased profibility in the last year.
| 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
TXRH has a Profit Margin of 7.65%. This is in the better half of the industry: TXRH outperforms 67.18% of its industry peers.
TXRH's Profit Margin has been stable in the last couple of years.
TXRH has a Operating Margin of 9.08%. This is comparable to the rest of the industry: TXRH outperforms 49.62% of its industry peers.
TXRH's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 66.64%, TXRH belongs to the top 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TXRH is creating value.
TXRH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TXRH has an Altman-Z score of 7.05. This indicates that TXRH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.05, TXRH belongs to the best of the industry, outperforming 91.60% of the companies in the same industry.
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 | 7.05 |
ROIC/WACC1.86
WACC9.45%
2.3 Liquidity
TXRH has a Current Ratio of 0.49. This is a bad value and indicates that TXRH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TXRH (0.49) is worse than 74.81% of its industry peers.
TXRH has a Quick Ratio of 0.49. This is a bad value and indicates that TXRH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TXRH (0.43) is worse than 76.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.83% over the past year.
TXRH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.34% yearly.
EPS 1Y (TTM)42.83%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%60.19%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%23.49%
3.2 Future
The Earnings Per Share is expected to grow by 11.82% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y12.71%
EPS Next 2Y12.87%
EPS Next 3Y11.82%
EPS Next 5YN/A
Revenue Next Year9.39%
Revenue Next 2Y9.26%
Revenue Next 3Y8.26%
Revenue Next 5Y3.74%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.14 indicates a quite expensive valuation of TXRH.
Compared to the rest of the industry, the Price/Earnings ratio of TXRH is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TXRH to the average of the S&P500 Index (29.63), we can say TXRH is valued inline with the index average.
A Price/Forward Earnings ratio of 23.19 indicates a rather expensive valuation of TXRH.
61.07% of the companies in the same industry are more expensive than TXRH, based on the Price/Forward Earnings ratio.
TXRH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 23.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXRH is valued a bit more expensive than 63.36% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TXRH is valued a bit cheaper than the industry average as 62.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.12 | ||
| EV/EBITDA | 17.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TXRH does not grow enough to justify the current Price/Earnings ratio.
TXRH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)1.23
EPS Next 2Y12.87%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
TXRH has a Yearly Dividend Yield of 1.42%.
TXRH's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to the average S&P500 Dividend Yield of 2.29, TXRH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
On average, the dividend of TXRH grows each year by 18.02%, which is quite nice.
TXRH has paid a dividend for at least 10 years, which is 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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.75%
EPS Next 2Y12.87%
EPS Next 3Y11.82%
169.13
-2.44 (-1.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.74%
Inst Owner Change-0.6%
Ins Owners0.43%
Ins Owner Change0.82%
Market Cap11.28B
Analysts74.29
Price Target201.44 (19.1%)
Short Float %3.18%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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)0.43%
PT rev (3m)6.35%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 23.19 | ||
| P/S | 2.21 | ||
| P/FCF | 33.12 | ||
| P/OCF | 16.34 | ||
| P/B | 8.62 | ||
| P/tB | 9.92 | ||
| EV/EBITDA | 17.8 |
EPS(TTM)6.47
EY3.83%
EPS(NY)7.29
Fwd EY4.31%
FCF(TTM)5.11
FCFY3.02%
OCF(TTM)10.35
OCFY6.12%
SpS76.45
BVpS19.61
TBVpS17.04
PEG (NY)2.06
PEG (5Y)1.23
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 | 7.05 |
F-Score8
WACC9.45%
ROIC/WACC1.86
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)42.83%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%60.19%
EPS Next Y12.71%
EPS Next 2Y12.87%
EPS Next 3Y11.82%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%23.49%
Revenue Next Year9.39%
Revenue Next 2Y9.26%
Revenue Next 3Y8.26%
Revenue Next 5Y3.74%
EBIT growth 1Y36.02%
EBIT growth 3Y138.54%
EBIT growth 5Y13.5%
EBIT Next Year93.03%
EBIT Next 3Y34.25%
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%