TEXAS ROADHOUSE INC (TXRH)
US8826811098 - Common Stock
Overall TXRH gets a fundamental rating of 5 out of 10. We evaluated TXRH against 135 industry peers in the Hotels, Restaurants & Leisure industry. TXRH has an excellent profitability rating, but 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
TXRH had positive earnings in the past year.
TXRH had a positive operating cash flow in the past year.
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
The Return On Assets of TXRH (10.92%) is better than 85.82% of its industry peers.
With a decent Return On Equity value of 26.71%, TXRH is doing good in the industry, outperforming 78.36% of the companies in the same industry.
TXRH has a better Return On Invested Capital (15.05%) than 86.57% of its industry peers.
TXRH had an Average Return On Invested Capital over the past 3 years of 14.52%. This is above the industry average of 10.32%.
The last Return On Invested Capital (15.05%) for TXRH is above the 3 year average (14.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.92% | ||
| ROE | 26.71% | ||
| ROIC | 15.05% |
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's Profit Margin of 6.58% is fine compared to the rest of the industry. TXRH outperforms 61.19% of its industry peers.
TXRH's Profit Margin has been stable in the last couple of years.
TXRH has a Operating Margin of 7.65%. This is comparable to the rest of the industry: TXRH outperforms 46.27% of 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 (65.59%) is better than 76.87% 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 | 7.65% | ||
| PM (TTM) | 6.58% | ||
| GM | 65.59% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TXRH is still creating some value.
TXRH has less shares outstanding than it did 1 year ago.
TXRH has less shares outstanding than it did 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
TXRH has an Altman-Z score of 6.13. This indicates that TXRH is financially healthy and has little risk of bankruptcy at the moment.
TXRH's Altman-Z score of 6.13 is amongst the best of the industry. TXRH outperforms 93.28% 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 | 6.13 |
ROIC/WACC1.63
WACC9.22%
2.3 Liquidity
TXRH has a Current Ratio of 0.48. 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 0.48. This is in the lower half of the industry: TXRH underperforms 78.36% of its industry peers.
TXRH has a Quick Ratio of 0.48. 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 Quick ratio, with a value of 0.43, TXRH is doing worse than 76.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.11% over the past year.
TXRH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.54% yearly.
Looking at the last year, TXRH shows a quite strong growth in Revenue. The Revenue has grown by 15.36% in the last year.
The Revenue has been growing by 13.51% on average over the past years. This is quite good.
EPS 1Y (TTM)14.11%
EPS 3Y115.92%
EPS 5Y15.54%
EPS growth Q2Q21.35%
Revenue 1Y (TTM)15.36%
Revenue growth 3Y24.53%
Revenue growth 5Y13.51%
Revenue growth Q2Q15.34%
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 16.69% yearly.
The Revenue is expected to grow by 5.56% on average over the next years.
EPS Next Y27.02%
EPS Next 2Y19.07%
EPS Next 3Y16.69%
EPS Next 5YN/A
Revenue Next Year14.23%
Revenue Next 2Y10.56%
Revenue Next 3Y10.13%
Revenue Next 5Y5.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
TXRH is valuated quite expensively with a Price/Earnings ratio of 33.30.
The rest of the industry has a similar Price/Earnings ratio as TXRH.
When comparing the Price/Earnings ratio of TXRH to the average of the S&P500 Index (24.80), we can say TXRH is valued slightly more expensively.
The Price/Forward Earnings ratio is 26.22, which means the current valuation is very expensive for TXRH.
The rest of the industry has a similar Price/Forward Earnings ratio as TXRH.
The average S&P500 Price/Forward Earnings ratio is at 21.27. TXRH is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.3 | ||
| Fwd PE | 26.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXRH is valued a bit more expensive than 68.66% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TXRH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.26 | ||
| EV/EBITDA | 19.61 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TXRH has a very decent profitability rating, which may justify a higher PE ratio.
TXRH's earnings are expected to grow with 16.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.23
PEG (5Y)2.14
EPS Next 2Y19.07%
EPS Next 3Y16.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, TXRH has a reasonable but not impressive dividend return.
TXRH's Dividend Yield is a higher than the industry average which is at 2.55.
TXRH's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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
48.27% of the earnings are spent on dividend by TXRH. 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.
DP48.27%
EPS Next 2Y19.07%
EPS Next 3Y16.69%
TEXAS ROADHOUSE INC
NASDAQ:TXRH (4/19/2024, 10:29:07 AM)
150.87
+0.41 (+0.27%)
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 Cap10.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
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 | 33.3 | ||
| Fwd PE | 26.22 | ||
| 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)1.23
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.92% | ||
| ROE | 26.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.65% | ||
| PM (TTM) | 6.58% | ||
| GM | 65.59% | ||
| 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 Turnover1.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.43 | ||
| 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)
Growth
EPS 1Y (TTM)14.11%
EPS 3Y115.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y27.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.36%
Revenue growth 3Y24.53%
Revenue growth 5Y
Revenue growth 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