186.14 USD
-4.51 (-2.37%)
186.14 USD
0 (0%)
TXRH gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. TXRH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
- TXRH had positive earnings in the past year.
- TXRH had a positive operating cash flow in the past year.
- 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 has a better Return On Assets (13.37%) than 90.15% of its industry peers.
- With an excellent Return On Equity value of 29.90%, TXRH belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- TXRH has a Return On Invested Capital of 17.27%. This is amongst the best in the industry. TXRH outperforms 87.88% 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 10.36%.
- The last Return On Invested Capital (17.27%) for TXRH is above the 3 year average (16.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.37% | ||
| ROE | 29.9% | ||
| ROIC | 17.27% |
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 has a Profit Margin of 7.49%. This is in the better half of the industry: TXRH outperforms 65.15% of its industry peers.
- In the last couple of years the Profit Margin of TXRH has grown nicely.
- TXRH has a Operating Margin (8.86%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of TXRH has grown nicely.
- TXRH has a Gross Margin of 65.83%. This is amongst the best in the industry. TXRH outperforms 80.30% 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 | 8.86% | ||
| PM (TTM) | 7.49% | ||
| GM | 65.83% |
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.
- TXRH has less shares outstanding than it did 5 years ago.
- TXRH has a better debt/assets ratio than last year.
2.2 Solvency
- TXRH has an Altman-Z score of 6.96. This indicates that TXRH is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 6.96, TXRH belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- 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 | 6.96 |
ROIC/WACC1.95
WACC8.88%
2.3 Liquidity
- TXRH has a Current Ratio of 0.36. 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 Current ratio value of 0.36, TXRH is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- TXRH has a Quick Ratio of 0.36. 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 worse Quick ratio (0.30) than 83.33% 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 | 0.36 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
- TXRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.37%, which is quite good.
- Measured over the past years, TXRH shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.34% on average per year.
- TXRH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.40%.
- The Revenue has been growing by 14.28% on average over the past years. This is quite good.
EPS 1Y (TTM)12.37%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%-0.79%
Revenue 1Y (TTM)14.4%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%12.83%
3.2 Future
- The Earnings Per Share is expected to grow by 11.44% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y-0.1%
EPS Next 2Y2.06%
EPS Next 3Y8.31%
EPS Next 5Y11.44%
Revenue Next Year10.27%
Revenue Next 2Y10.4%
Revenue Next 3Y9.96%
Revenue Next 5Y3.74%
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
- TXRH is valuated quite expensively with a Price/Earnings ratio of 28.46.
- 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 (27.25), we can say TXRH is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 27.62, the valuation of TXRH can be described as expensive.
- TXRH's Price/Forward Earnings is on the same level as the industry average.
- TXRH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.46 | ||
| Fwd PE | 27.62 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TXRH is valued a bit more expensive than 62.88% of the companies in the same industry.
- TXRH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.16 | ||
| EV/EBITDA | 17.41 |
4.3 Compensation for Growth
- The excellent profitability rating of TXRH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y2.06%
EPS Next 3Y8.31%
5. Dividend
5.1 Amount
- TXRH has a Yearly Dividend Yield of 1.42%.
- TXRH's Dividend Yield is a higher than the industry average which is at 1.21.
- TXRH's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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
- TXRH pays out 40.30% 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.
DP40.3%
EPS Next 2Y2.06%
EPS Next 3Y8.31%
TEXAS ROADHOUSE INC / TXRH FAQ
What is the ChartMill fundamental rating of TEXAS ROADHOUSE INC (TXRH) stock?
ChartMill assigns a fundamental rating of 7 / 10 to TXRH.
What is the valuation status for TXRH stock?
ChartMill assigns a valuation rating of 2 / 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 9 / 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 28.46 and the Price/Book (PB) ratio is 8.43.
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 40.3%.