TEXAS ROADHOUSE INC (TXRH) Stock Fundamental Analysis
NASDAQ:TXRH - Nasdaq - US8826811098 - Common Stock - Currency: USD
Taking everything into account, TXRH scores 7 out of 10 in our fundamental rating. TXRH was compared to 132 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 has a decent growth rate and is not valued too expensively. With these ratings, TXRH could be worth investigating further 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.
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's Return On Assets of 13.60% is amongst the best of the industry. TXRH outperforms 90.91% of its industry peers.
The Return On Equity of TXRH (31.45%) is better than 85.61% of its industry peers.
TXRH has a Return On Invested Capital of 18.33%. This is amongst the best in the industry. TXRH outperforms 90.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXRH is above the industry average of 13.91%.
The last Return On Invested Capital (18.33%) for TXRH is above the 3 year average (16.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.6% | ||
| ROE | 31.45% | ||
| ROIC | 18.33% |
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
With a decent Profit Margin value of 7.89%, TXRH is doing good in the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of TXRH has grown nicely.
Looking at the Operating Margin, with a value of 9.44%, TXRH is in line with its industry, outperforming 52.27% of the companies in the same industry.
In the last couple of years the Operating Margin of TXRH has grown nicely.
With an excellent Gross Margin value of 66.71%, TXRH belongs to the best of the industry, outperforming 80.30% of the companies in the same industry.
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 | 9.44% | ||
| PM (TTM) | 7.89% | ||
| GM | 66.71% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TXRH is creating value.
The number of shares outstanding for TXRH has been reduced compared to 1 year ago.
The number of shares outstanding for TXRH has been reduced compared to 5 years ago.
TXRH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.76 indicates that TXRH is not in any danger for bankruptcy at the moment.
TXRH's Altman-Z score of 6.76 is amongst the best of the industry. TXRH outperforms 88.64% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.76 |
ROIC/WACC1.97
WACC9.31%
2.3 Liquidity
A Current Ratio of 0.47 indicates that TXRH may have some problems paying its short term obligations.
TXRH's Current ratio of 0.47 is on the low side compared to the rest of the industry. TXRH is outperformed by 78.03% of its industry peers.
A Quick Ratio of 0.41 indicates that TXRH may have some problems paying its short term obligations.
With a Quick ratio value of 0.41, TXRH is not doing good in the industry: 78.03% 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 | 0.47 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
TXRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.17%, which is quite impressive.
The Earnings Per Share has been growing by 21.34% on average over the past years. This is a very strong growth
TXRH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.09%.
The Revenue has been growing by 14.28% on average over the past years. This is quite good.
EPS 1Y (TTM)31.17%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%0.59%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%9.57%
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 10.17% on average per year.
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 Y5.44%
EPS Next 2Y9.15%
EPS Next 3Y10.17%
EPS Next 5YN/A
Revenue Next Year9.59%
Revenue Next 2Y9.25%
Revenue Next 3Y9.08%
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 28.18 indicates a quite expensive valuation of TXRH.
TXRH's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.48, TXRH is valued at the same level.
With a Price/Forward Earnings ratio of 23.69, TXRH is valued on the expensive side.
TXRH's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TXRH to the average of the S&P500 Index (36.52), we can say TXRH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 23.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXRH is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TXRH is valued a bit cheaper than the industry average as 62.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.75 | ||
| EV/EBITDA | 17.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TXRH may justify a higher PE ratio.
PEG (NY)5.18
PEG (5Y)1.32
EPS Next 2Y9.15%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, TXRH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.47, TXRH pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, TXRH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of TXRH is nicely growing with an annual growth rate of 10.95%!
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
38.53% of the earnings are spent on dividend by TXRH. This is a low number and sustainable payout ratio.
TXRH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.53%
EPS Next 2Y9.15%
EPS Next 3Y10.17%
182.58
-1.43 (-0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.04%
Inst Owner Change-0.02%
Ins Owners0.38%
Ins Owner Change0.2%
Market Cap12.11B
Analysts72.35
Price Target190.89 (4.55%)
Short Float %4.74%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.44
Dividend Growth(5Y)10.95%
DP38.53%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.98%
Min EPS beat(2)-5.39%
Max EPS beat(2)3.44%
EPS beat(4)2
Avg EPS beat(4)-0.31%
Min EPS beat(4)-6.08%
Max EPS beat(4)6.8%
EPS beat(8)3
Avg EPS beat(8)-1.6%
EPS beat(12)5
Avg EPS beat(12)-2.48%
EPS beat(16)8
Avg EPS beat(16)-0.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.8%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.08%
Max Revenue beat(4)-0.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.6%
Revenue beat(12)1
Avg Revenue beat(12)-1.44%
Revenue beat(16)2
Avg Revenue beat(16)-1.24%
PT rev (1m)1.01%
PT rev (3m)-2.35%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-2.77%
EPS NY rev (1m)-0.58%
EPS NY rev (3m)-3.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 23.69 | ||
| P/S | 2.2 | ||
| P/FCF | 30.75 | ||
| P/OCF | 16.19 | ||
| P/B | 8.78 | ||
| P/tB | 10.58 | ||
| EV/EBITDA | 17.01 |
EPS(TTM)6.48
EY3.55%
EPS(NY)7.71
Fwd EY4.22%
FCF(TTM)5.94
FCFY3.25%
OCF(TTM)11.27
OCFY6.17%
SpS82.9
BVpS20.8
TBVpS17.26
PEG (NY)5.18
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.6% | ||
| ROE | 31.45% | ||
| ROCE | 21.29% | ||
| ROIC | 18.33% | ||
| ROICexc | 20.16% | ||
| ROICexgc | 22.55% | ||
| OM | 9.44% | ||
| PM (TTM) | 7.89% | ||
| GM | 66.71% | ||
| FCFM | 7.16% |
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-Score8
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 190.9% | ||
| Cap/Sales | 6.44% | ||
| Interest Coverage | 597.44 | ||
| Cash Conversion | 106.14% | ||
| Profit Quality | 90.74% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 6.76 |
F-Score8
WACC9.31%
ROIC/WACC1.97
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)31.17%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%0.59%
EPS Next Y5.44%
EPS Next 2Y9.15%
EPS Next 3Y10.17%
EPS Next 5YN/A
Revenue 1Y (TTM)15.09%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%9.57%
Revenue Next Year9.59%
Revenue Next 2Y9.25%
Revenue Next 3Y9.08%
Revenue Next 5Y3.74%
EBIT growth 1Y34.28%
EBIT growth 3Y20.23%
EBIT growth 5Y19.65%
EBIT Next Year45.42%
EBIT Next 3Y21.11%
EBIT Next 5YN/A
FCF growth 1Y58.12%
FCF growth 3Y14.2%
FCF growth 5Y20.07%
OCF growth 1Y45.82%
OCF growth 3Y17.14%
OCF growth 5Y15.02%