TEXAS ROADHOUSE INC (TXRH) Stock Fundamental Analysis
NASDAQ:TXRH • US8826811098
181.78 USD
+1.09 (+0.6%)
At close: Feb 25, 2026
181.78 USD
0 (0%)
After Hours: 2/25/2026, 8:00:01 PM
We assign a fundamental rating of 6 out of 10 to TXRH. TXRH was compared to 126 industry peers in the Hotels, Restaurants & Leisure industry. While TXRH has a great profitability rating, 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.
- 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
- The Return On Assets of TXRH (11.43%) is better than 85.71% of its industry peers.
- Looking at the Return On Equity, with a value of 27.76%, TXRH belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
- TXRH has a better Return On Invested Capital (23.91%) than 94.44% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TXRH is significantly above the industry average of 10.66%.
- The 3 year average ROIC (19.14%) for TXRH is below the current ROIC(23.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 27.76% | ||
| ROIC | 23.92% |
ROA(3y)11.98%
ROA(5y)11.28%
ROE(3y)28.8%
ROE(5y)27.24%
ROIC(3y)19.14%
ROIC(5y)17.09%
1.3 Margins
- The Profit Margin of TXRH (6.90%) is better than 63.49% of its industry peers.
- TXRH's Profit Margin has improved in the last couple of years.
- TXRH has a Operating Margin (8.08%) which is in line with its industry peers.
- TXRH's Operating Margin has improved in the last couple of years.
- TXRH has a Gross Margin of 65.13%. This is in the better half of the industry: TXRH outperforms 79.37% of its industry peers.
- TXRH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.08% | ||
| PM (TTM) | 6.9% | ||
| GM | 65.13% |
OM growth 3Y0.28%
OM growth 5Y49.33%
PM growth 3Y0.88%
PM growth 5Y39.52%
GM growth 3Y-0.28%
GM growth 5Y-0.7%
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.
- The number of shares outstanding for TXRH has been reduced compared to 1 year ago.
- TXRH has less shares outstanding than it did 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
- 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 | N/A |
ROIC/WACC2.76
WACC8.68%
2.3 Liquidity
- A Current Ratio of 0.24 indicates that TXRH may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.24, TXRH is doing worse than 95.24% of the companies in the same industry.
- TXRH has a Quick Ratio of 0.24. 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 Quick ratio of 0.24. This is amonst the worse of the industry: TXRH underperforms 91.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
- TXRH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.87%.
- The Earnings Per Share has been growing by 68.38% on average over the past years. This is a very strong growth
- Looking at the last year, TXRH shows a quite strong growth in Revenue. The Revenue has grown by 9.39% in the last year.
- The Revenue has been growing by 19.64% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.87%
EPS 3Y15.33%
EPS 5Y68.38%
EPS Q2Q%-26.01%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y13.55%
Revenue growth 5Y19.64%
Sales Q2Q%3.07%
3.2 Future
- The Earnings Per Share is expected to grow by 14.03% on average over the next years. This is quite good.
- Based on estimates for the next years, TXRH will show a quite strong growth in Revenue. The Revenue will grow by 9.05% on average per year.
EPS Next Y10.96%
EPS Next 2Y16.68%
EPS Next 3Y17.9%
EPS Next 5Y14.03%
Revenue Next Year10.47%
Revenue Next 2Y9.83%
Revenue Next 3Y9.82%
Revenue Next 5Y9.05%
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.
- 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
- With a Price/Earnings ratio of 29.85, TXRH can be considered very expensive at the moment.
- TXRH's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.05. TXRH is around the same levels.
- A Price/Forward Earnings ratio of 26.90 indicates a quite expensive valuation of TXRH.
- TXRH's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.03, TXRH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.85 | ||
| Fwd PE | 26.9 |
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 66.67% of the companies 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 | 35.15 | ||
| EV/EBITDA | 17.34 |
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.
- TXRH's earnings are expected to grow with 17.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.72
PEG (5Y)0.44
EPS Next 2Y16.68%
EPS Next 3Y17.9%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.66%, TXRH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.09, TXRH pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.80, TXRH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
- The dividend of TXRH is nicely growing with an annual growth rate of 49.83%!
- 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)49.83%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 44.45% of the earnings are spent on dividend by TXRH. This is a bit on the high side, but may be sustainable.
- TXRH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP44.45%
EPS Next 2Y16.68%
EPS Next 3Y17.9%
181.78
+1.09 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)05-06 2026-05-06/amc
Inst Owners97.3%
Inst Owner Change1.03%
Ins Owners0.37%
Ins Owner Change0.38%
Market Cap12.02B
Revenue(TTM)5.88B
Net Income(TTM)405.55M
Analysts73.16
Price Target199.32 (9.65%)
Short Float %4.19%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend2.72
Dividend Growth(5Y)49.83%
DP44.45%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-17 2026-03-17 (0.75)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.46%
Min EPS beat(2)-16.66%
Max EPS beat(2)-4.26%
EPS beat(4)0
Avg EPS beat(4)-7.68%
Min EPS beat(4)-16.66%
Max EPS beat(4)-4.26%
EPS beat(8)3
Avg EPS beat(8)-3.09%
EPS beat(12)3
Avg EPS beat(12)-3.81%
EPS beat(16)6
Avg EPS beat(16)-2.42%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)-1.42%
Revenue beat(4)0
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-2.88%
Max Revenue beat(4)-1.3%
Revenue beat(8)0
Avg Revenue beat(8)-1.64%
Revenue beat(12)1
Avg Revenue beat(12)-1.53%
Revenue beat(16)1
Avg Revenue beat(16)-1.45%
PT rev (1m)1.57%
PT rev (3m)3.34%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-1.76%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.85 | ||
| Fwd PE | 26.9 | ||
| P/S | 2.05 | ||
| P/FCF | 35.15 | ||
| P/OCF | 16.47 | ||
| P/B | 8.23 | ||
| P/tB | 10.01 | ||
| EV/EBITDA | 17.34 |
EPS(TTM)6.09
EY3.35%
EPS(NY)6.76
Fwd EY3.72%
FCF(TTM)5.17
FCFY2.84%
OCF(TTM)11.04
OCFY6.07%
SpS88.86
BVpS22.08
TBVpS18.15
PEG (NY)2.72
PEG (5Y)0.44
Graham Number55.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 27.76% | ||
| ROCE | 27.99% | ||
| ROIC | 23.92% | ||
| ROICexc | 25.98% | ||
| ROICexgc | 31.16% | ||
| OM | 8.08% | ||
| PM (TTM) | 6.9% | ||
| GM | 65.13% | ||
| FCFM | 5.82% |
ROA(3y)11.98%
ROA(5y)11.28%
ROE(3y)28.8%
ROE(5y)27.24%
ROIC(3y)19.14%
ROIC(5y)17.09%
ROICexc(3y)20.82%
ROICexc(5y)18.96%
ROICexgc(3y)23.66%
ROICexgc(5y)21.28%
ROCE(3y)22.4%
ROCE(5y)19.99%
ROICexgc growth 3Y20.54%
ROICexgc growth 5Y79.3%
ROICexc growth 3Y17.1%
ROICexc growth 5Y76.14%
OM growth 3Y0.28%
OM growth 5Y49.33%
PM growth 3Y0.88%
PM growth 5Y39.52%
GM growth 3Y-0.28%
GM growth 5Y-0.7%
F-Score5
Asset Turnover1.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 187.76% | ||
| Cap/Sales | 6.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.09% | ||
| Profit Quality | 84.35% | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | N/A |
F-Score5
WACC8.68%
ROIC/WACC2.76
Cap/Depr(3y)204.39%
Cap/Depr(5y)190.17%
Cap/Sales(3y)6.9%
Cap/Sales(5y)6.52%
Profit Quality(3y)82.64%
Profit Quality(5y)91.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.87%
EPS 3Y15.33%
EPS 5Y68.38%
EPS Q2Q%-26.01%
EPS Next Y10.96%
EPS Next 2Y16.68%
EPS Next 3Y17.9%
EPS Next 5Y14.03%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y13.55%
Revenue growth 5Y19.64%
Sales Q2Q%3.07%
Revenue Next Year10.47%
Revenue Next 2Y9.83%
Revenue Next 3Y9.82%
Revenue Next 5Y9.05%
EBIT growth 1Y-8.24%
EBIT growth 3Y13.87%
EBIT growth 5Y78.66%
EBIT Next Year46.85%
EBIT Next 3Y25.02%
EBIT Next 5Y19.2%
FCF growth 1Y-14.33%
FCF growth 3Y8.8%
FCF growth 5Y35.1%
OCF growth 1Y-3.13%
OCF growth 3Y12.58%
OCF growth 5Y25.94%
TEXAS ROADHOUSE INC / TXRH FAQ
What is the ChartMill fundamental rating of TEXAS ROADHOUSE INC (TXRH) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TXRH.
What is the valuation status for TXRH stock?
ChartMill assigns a valuation rating of 3 / 10 to TEXAS ROADHOUSE INC (TXRH). This can be considered as Overvalued.
How profitable is TEXAS ROADHOUSE INC (TXRH) stock?
TEXAS ROADHOUSE INC (TXRH) has a profitability rating of 8 / 10.
What is the valuation of TEXAS ROADHOUSE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TEXAS ROADHOUSE INC (TXRH) is 29.85 and the Price/Book (PB) ratio is 8.23.
Is the dividend of TEXAS ROADHOUSE INC sustainable?
The dividend rating of TEXAS ROADHOUSE INC (TXRH) is 5 / 10 and the dividend payout ratio is 44.45%.