TEXAS ROADHOUSE INC (TXRH)
US8826811098 - Common Stock
Taking everything into account, TXRH scores 7 out of 10 in our fundamental rating. TXRH was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. TXRH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TXRH is not valued too expensively and it also shows a decent growth rate. These ratings would make TXRH suitable 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.
Each year in the past 5 years TXRH has been profitable.
TXRH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.72%, TXRH belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
With an excellent Return On Equity value of 27.48%, TXRH belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
TXRH has a better Return On Invested Capital (15.68%) than 86.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXRH is above the industry average of 10.11%.
The 3 year average ROIC (14.52%) for TXRH is below the current ROIC(15.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 27.48% | ||
| ROIC | 15.68% |
ROA(3y)10.45%
ROA(5y)8.3%
ROE(3y)25.51%
ROE(5y)19.79%
ROIC(3y)14.52%
ROIC(5y)11.3%
1.3 Margins
TXRH has a better Profit Margin (6.94%) than 64.93% of its industry peers.
TXRH's Profit Margin has been stable in the last couple of years.
TXRH has a Operating Margin (8.09%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TXRH has remained more or less at the same level.
The Gross Margin of TXRH (65.93%) is better than 75.37% 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 | 8.09% | ||
| PM (TTM) | 6.94% | ||
| GM | 65.93% |
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) just above the Cost of Capital (WACC), TXRH is creating some 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.
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 6.72. This indicates that TXRH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TXRH (6.72) is better than 95.52% 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 | 6.72 |
ROIC/WACC1.77
WACC8.87%
2.3 Liquidity
TXRH has a Current Ratio of 0.50. This is a bad value and indicates that TXRH is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.50, TXRH is doing worse than 75.37% of the companies in the same industry.
A Quick Ratio of 0.45 indicates that TXRH may have some problems paying its short term obligations.
TXRH has a worse Quick ratio (0.45) than 75.37% of its industry peers.
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 | 0.5 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
TXRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.47%, which is quite good.
TXRH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.54% yearly.
The Revenue has grown by 13.73% in the past year. This is quite good.
TXRH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.51% yearly.
EPS 1Y (TTM)18.47%
EPS 3Y115.92%
EPS 5Y15.54%
EPS Q2Q%32.03%
Revenue 1Y (TTM)13.73%
Revenue growth 3Y24.53%
Revenue growth 5Y13.51%
Sales Q2Q%12.51%
3.2 Future
TXRH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.10% yearly.
The Revenue is expected to grow by 5.56% on average over the next years.
EPS Next Y34.47%
EPS Next 2Y22.08%
EPS Next 3Y20.1%
EPS Next 5YN/A
Revenue Next Year15.04%
Revenue Next 2Y11.11%
Revenue Next 3Y10.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.89, which means the current valuation is very expensive for 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 (28.39), we can say TXRH is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.80, the valuation of TXRH can be described as rather expensive.
TXRH's Price/Forward Earnings ratio is in line with the industry average.
TXRH's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 19.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.89 | ||
| Fwd PE | 24.8 |
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 72.39% 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 | 42.78 | ||
| EV/EBITDA | 20.12 |
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.
TXRH has an outstanding profitability rating, which may justify a higher PE ratio.
TXRH's earnings are expected to grow with 20.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)2.18
EPS Next 2Y22.08%
EPS Next 3Y20.1%
5. Dividend
5.1 Amount
TXRH has a Yearly Dividend Yield of 1.43%.
TXRH's Dividend Yield is a higher than the industry average which is at 2.86.
With a Dividend Yield of 1.43, TXRH pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of TXRH is nicely growing with an annual growth rate of 18.02%!
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 Years3
Div Non Decr Years3
5.3 Sustainability
TXRH pays out 45.54% of its income as dividend. This is a bit on the high side, but may be sustainable.
TXRH's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP45.54%
EPS Next 2Y22.08%
EPS Next 3Y20.1%
TEXAS ROADHOUSE INC
NASDAQ:TXRH (6/14/2024, 7:00:01 PM)
After market: 167.43 0 (0%)167.43
-3.71 (-2.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.89 | ||
| Fwd PE | 24.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.98
PEG (5Y)2.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.72% | ||
| ROE | 27.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.09% | ||
| PM (TTM) | 6.94% | ||
| GM | 65.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.47%
EPS 3Y115.92%
EPS 5Y
EPS Q2Q%
EPS Next Y34.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.73%
Revenue growth 3Y24.53%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y