TEXAS ROADHOUSE INC (TXRH) Stock Fundamental Analysis
NASDAQ:TXRH - Nasdaq - US8826811098 - Common Stock - Currency: USD
Overall TXRH gets a fundamental rating of 7 out of 10. We evaluated TXRH against 136 industry peers in the Hotels, Restaurants & Leisure industry. TXRH gets an excellent profitability rating and is at the same time showing great financial health properties. TXRH is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make TXRH a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year TXRH was profitable.
In the past year TXRH had a positive cash flow from operations.
In the past 5 years TXRH has always been profitable.
TXRH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TXRH's Return On Assets of 13.59% is amongst the best of the industry. TXRH outperforms 91.18% of its industry peers.
The Return On Equity of TXRH (31.92%) is better than 84.56% of its industry peers.
TXRH has a Return On Invested Capital of 18.87%. This is amongst the best in the industry. TXRH outperforms 91.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXRH is in line with the industry average of 15.76%.
The last Return On Invested Capital (18.87%) for TXRH is above the 3 year average (16.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.59% | ||
| ROE | 31.92% | ||
| ROIC | 18.87% |
ROA(3y)11.73%
ROA(5y)9.26%
ROE(3y)28.42%
ROE(5y)22.37%
ROIC(3y)16.19%
ROIC(5y)12.65%
1.3 Margins
TXRH's Profit Margin of 8.07% is fine compared to the rest of the industry. TXRH outperforms 66.91% of its industry peers.
TXRH's Profit Margin has improved in the last couple of years.
TXRH has a Operating Margin of 9.64%. This is comparable to the rest of the industry: TXRH outperforms 51.47% of its industry peers.
TXRH's Operating Margin has improved in the last couple of years.
TXRH has a Gross Margin of 66.78%. This is in the better half of the industry: TXRH outperforms 79.41% of its industry peers.
In the last couple of years the Gross Margin of TXRH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.64% | ||
| PM (TTM) | 8.07% | ||
| GM | 66.78% |
OM growth 3Y3.86%
OM growth 5Y4.7%
PM growth 3Y4.45%
PM growth 5Y4.97%
GM growth 3Y0.08%
GM growth 5Y-0.35%
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.
Compared to 5 years ago, TXRH has less shares outstanding
TXRH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.21 indicates that TXRH is not in any danger for bankruptcy at the moment.
The Altman-Z score of TXRH (6.21) is better than 91.18% 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 | 6.21 |
ROIC/WACC2.11
WACC8.93%
2.3 Liquidity
TXRH has a Current Ratio of 0.62. This is a bad value and indicates that TXRH is not financially healthy enough and could expect problems in meeting its short term obligations.
TXRH has a Current ratio of 0.62. This is in the lower half of the industry: TXRH underperforms 66.18% of its industry peers.
TXRH has a Quick Ratio of 0.62. This is a bad value and indicates that TXRH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.57, TXRH is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
TXRH does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.62 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
TXRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.83%, which is quite impressive.
TXRH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.34% yearly.
TXRH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.01%.
TXRH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.28% yearly.
EPS 1Y (TTM)42.83%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%60.19%
Revenue 1Y (TTM)16.01%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%23.49%
3.2 Future
TXRH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.93% yearly.
Based on estimates for the next years, TXRH will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y8.79%
EPS Next 2Y10.74%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue Next Year8.95%
Revenue Next 2Y8.82%
Revenue Next 3Y8.67%
Revenue Next 5Y3.74%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
A Price/Earnings ratio of 24.98 indicates a rather expensive valuation of TXRH.
The rest of the industry has a similar Price/Earnings ratio as TXRH.
The average S&P500 Price/Earnings ratio is at 28.78. TXRH is around the same levels.
The Price/Forward Earnings ratio is 22.96, which indicates a rather expensive current valuation of TXRH.
TXRH's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.32. TXRH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 22.96 |
4.2 Price Multiples
TXRH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TXRH is more expensive than 61.03% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXRH indicates a somewhat cheap valuation: TXRH is cheaper than 63.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.89 | ||
| EV/EBITDA | 15.08 |
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.
The excellent profitability rating of TXRH may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)1.17
EPS Next 2Y10.74%
EPS Next 3Y10.93%
5. Dividend
5.1 Amount
TXRH has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.85, TXRH pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.46, TXRH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
On average, the dividend of TXRH grows each year by 10.95%, which is quite nice.
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)10.95%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
TXRH pays out 37.56% of its income as dividend. This is a sustainable payout ratio.
The dividend of TXRH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.56%
EPS Next 2Y10.74%
EPS Next 3Y10.93%
161.64
-0.2 (-0.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.55%
Inst Owner Change-34.98%
Ins Owners0.48%
Ins Owner Change1%
Market Cap10.74B
Analysts74.29
Price Target188.4 (16.56%)
Short Float %4.35%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend2.44
Dividend Growth(5Y)10.95%
DP37.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.32%
Min EPS beat(2)-6.08%
Max EPS beat(2)3.44%
EPS beat(4)3
Avg EPS beat(4)1.5%
Min EPS beat(4)-6.08%
Max EPS beat(4)6.8%
EPS beat(8)3
Avg EPS beat(8)-1.88%
EPS beat(12)6
Avg EPS beat(12)-0.67%
EPS beat(16)9
Avg EPS beat(16)3.17%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-2.08%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-2.08%
Max Revenue beat(4)-0.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.41%
Revenue beat(12)1
Avg Revenue beat(12)-1.35%
Revenue beat(16)3
Avg Revenue beat(16)-0.79%
PT rev (1m)-3.62%
PT rev (3m)-6.54%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-10.71%
EPS NY rev (1m)-0.85%
EPS NY rev (3m)-3.65%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 22.96 | ||
| P/S | 2 | ||
| P/FCF | 26.89 | ||
| P/OCF | 14.25 | ||
| P/B | 7.91 | ||
| P/tB | 9.04 | ||
| EV/EBITDA | 15.08 |
EPS(TTM)6.47
EY4%
EPS(NY)7.04
Fwd EY4.35%
FCF(TTM)6.01
FCFY3.72%
OCF(TTM)11.34
OCFY7.02%
SpS80.89
BVpS20.45
TBVpS17.87
PEG (NY)2.84
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.59% | ||
| ROE | 31.92% | ||
| ROCE | 21.91% | ||
| ROIC | 18.87% | ||
| ROICexc | 21.06% | ||
| ROICexgc | 22.91% | ||
| OM | 9.64% | ||
| PM (TTM) | 8.07% | ||
| GM | 66.78% | ||
| FCFM | 7.43% |
ROA(3y)11.73%
ROA(5y)9.26%
ROE(3y)28.42%
ROE(5y)22.37%
ROIC(3y)16.19%
ROIC(5y)12.65%
ROICexc(3y)17.69%
ROICexc(5y)14.18%
ROICexgc(3y)19.36%
ROICexgc(5y)15.5%
ROCE(3y)18.8%
ROCE(5y)14.68%
ROICexcg growth 3Y8.89%
ROICexcg growth 5Y10.92%
ROICexc growth 3Y8.92%
ROICexc growth 5Y11.06%
OM growth 3Y3.86%
OM growth 5Y4.7%
PM growth 3Y4.45%
PM growth 5Y4.97%
GM growth 3Y0.08%
GM growth 5Y-0.35%
F-Score9
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 198.89% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 581.08 | ||
| Cash Conversion | 108.3% | ||
| Profit Quality | 92.09% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 6.21 |
F-Score9
WACC8.93%
ROIC/WACC2.11
Cap/Depr(3y)201.6%
Cap/Depr(5y)178.81%
Cap/Sales(3y)6.74%
Cap/Sales(5y)6.49%
Profit Quality(3y)87.34%
Profit Quality(5y)122.83%
High Growth Momentum
Growth
EPS 1Y (TTM)42.83%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%60.19%
EPS Next Y8.79%
EPS Next 2Y10.74%
EPS Next 3Y10.93%
EPS Next 5YN/A
Revenue 1Y (TTM)16.01%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%23.49%
Revenue Next Year8.95%
Revenue Next 2Y8.82%
Revenue Next 3Y8.67%
Revenue Next 5Y3.74%
EBIT growth 1Y46.12%
EBIT growth 3Y20.23%
EBIT growth 5Y19.65%
EBIT Next Year48.29%
EBIT Next 3Y21.74%
EBIT Next 5YN/A
FCF growth 1Y83.2%
FCF growth 3Y14.2%
FCF growth 5Y20.07%
OCF growth 1Y33.39%
OCF growth 3Y17.14%
OCF growth 5Y15.02%