TEXAS ROADHOUSE INC (TXRH) Stock Fundamental Analysis
USA - NASDAQ:TXRH - US8826811098 - Common Stock
159.64 USD
+0.08 (+0.05%)
159.86 USD
+0.22 (+0.14%)
We assign a fundamental rating of 7 out of 10 to TXRH. TXRH was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. Both the health and profitability get an excellent rating, making TXRH a very profitable company, without any liquidiy or solvency issues. TXRH has a decent growth rate and is not valued too expensively. 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.
TXRH had positive earnings in each of the past 5 years.
In the past 5 years TXRH always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 13.45%, TXRH belongs to the best of the industry, outperforming 90.30% of the companies in the same industry.
TXRH has a Return On Equity of 30.19%. This is amongst the best in the industry. TXRH outperforms 84.33% of its industry peers.
TXRH has a Return On Invested Capital of 17.71%. This is amongst the best in the industry. TXRH outperforms 88.81% of its industry peers.
TXRH had an Average Return On Invested Capital over the past 3 years of 16.19%. This is in line with the industry average of 15.67%.
The last Return On Invested Capital (17.71%) for TXRH is above the 3 year average (16.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.45% | ||
| ROE | 30.19% | ||
| ROIC | 17.71% |
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 7.72%, TXRH is doing good in the industry, outperforming 64.93% of the companies in the same industry.
In the last couple of years the Profit Margin of TXRH has grown nicely.
TXRH has a Operating Margin of 9.22%. This is comparable to the rest of the industry: TXRH outperforms 52.24% of its industry peers.
In the last couple of years the Operating Margin of TXRH has grown nicely.
TXRH has a Gross Margin of 66.38%. This is in the better half of the industry: TXRH outperforms 79.85% 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 | 9.22% | ||
| PM (TTM) | 7.72% | ||
| GM | 66.38% |
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.
Compared to 1 year ago, TXRH has less shares outstanding
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 6.28. This indicates that TXRH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.28, TXRH belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
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 | 6.28 |
ROIC/WACC2
WACC8.86%
2.3 Liquidity
A Current Ratio of 0.45 indicates that TXRH may have some problems paying its short term obligations.
TXRH has a Current ratio of 0.45. This is in the lower half of the industry: TXRH underperforms 79.10% of its industry peers.
TXRH has a Quick Ratio of 0.45. 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 0.39. This is in the lower half of the industry: TXRH underperforms 79.10% of its industry peers.
TXRH does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.45 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.87% over the past year.
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.
Looking at the last year, TXRH shows a quite strong growth in Revenue. The Revenue has grown by 14.59% in the last year.
Measured over the past years, TXRH shows a quite strong growth in Revenue. The Revenue has been growing by 14.28% on average per year.
EPS 1Y (TTM)18.87%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%3.91%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%12.74%
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 10.53% yearly.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y3.47%
EPS Next 2Y8.72%
EPS Next 3Y10.53%
EPS Next 5YN/A
Revenue Next Year10.07%
Revenue Next 2Y9.97%
Revenue Next 3Y9.54%
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.
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 24.37, which indicates a rather expensive current valuation of TXRH.
Based on the Price/Earnings ratio, TXRH is valued a bit cheaper than the industry average as 61.94% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TXRH to the average of the S&P500 Index (27.41), we can say TXRH is valued inline with the index average.
A Price/Forward Earnings ratio of 20.88 indicates a rather expensive valuation of TXRH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TXRH is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, TXRH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.37 | ||
| Fwd PE | 20.88 |
4.2 Price Multiples
TXRH's Enterprise Value to EBITDA is on the same level as the industry average.
62.69% of the companies in the same industry are more expensive than TXRH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.4 | ||
| EV/EBITDA | 14.56 |
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)7.03
PEG (5Y)1.14
EPS Next 2Y8.72%
EPS Next 3Y10.53%
5. Dividend
5.1 Amount
TXRH has a Yearly Dividend Yield of 1.70%.
TXRH's Dividend Yield is a higher than the industry average which is at 6.79.
TXRH's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
On average, the dividend of TXRH grows each year by 10.95%, which is quite nice.
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)10.95%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
39.19% 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.
DP39.19%
EPS Next 2Y8.72%
EPS Next 3Y10.53%
159.64
+0.08 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.98%
Inst Owner Change-4.11%
Ins Owners0.37%
Ins Owner Change-0.11%
Market Cap10.61B
Analysts72.35
Price Target200.28 (25.46%)
Short Float %4.22%
Short Ratio2.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend2.44
Dividend Growth(5Y)10.95%
DP39.19%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.9%
Min EPS beat(2)-5.39%
Max EPS beat(2)-4.4%
EPS beat(4)1
Avg EPS beat(4)-3.11%
Min EPS beat(4)-6.08%
Max EPS beat(4)3.44%
EPS beat(8)3
Avg EPS beat(8)-2.06%
EPS beat(12)4
Avg EPS beat(12)-3.14%
EPS beat(16)7
Avg EPS beat(16)-1.15%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.08%
Max Revenue beat(4)-0.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.56%
Revenue beat(12)1
Avg Revenue beat(12)-1.43%
Revenue beat(16)1
Avg Revenue beat(16)-1.43%
PT rev (1m)1.42%
PT rev (3m)5.98%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-8.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.37 | ||
| Fwd PE | 20.88 | ||
| P/S | 1.87 | ||
| P/FCF | 28.4 | ||
| P/OCF | 14.29 | ||
| P/B | 7.31 | ||
| P/tB | 8.79 | ||
| EV/EBITDA | 14.56 |
EPS(TTM)6.55
EY4.1%
EPS(NY)7.65
Fwd EY4.79%
FCF(TTM)5.62
FCFY3.52%
OCF(TTM)11.17
OCFY7%
SpS85.34
BVpS21.83
TBVpS18.15
PEG (NY)7.03
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.45% | ||
| ROE | 30.19% | ||
| ROCE | 20.57% | ||
| ROIC | 17.71% | ||
| ROICexc | 19.04% | ||
| ROICexgc | 21.23% | ||
| OM | 9.22% | ||
| PM (TTM) | 7.72% | ||
| GM | 66.38% | ||
| FCFM | 6.59% |
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-Score7
Asset Turnover1.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 190.79% | ||
| Cap/Sales | 6.5% | ||
| Interest Coverage | 591.32 | ||
| Cash Conversion | 103.67% | ||
| Profit Quality | 85.27% | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 6.28 |
F-Score7
WACC8.86%
ROIC/WACC2
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)18.87%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%3.91%
EPS Next Y3.47%
EPS Next 2Y8.72%
EPS Next 3Y10.53%
EPS Next 5YN/A
Revenue 1Y (TTM)14.59%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%12.74%
Revenue Next Year10.07%
Revenue Next 2Y9.97%
Revenue Next 3Y9.54%
Revenue Next 5Y3.74%
EBIT growth 1Y20.43%
EBIT growth 3Y20.23%
EBIT growth 5Y19.65%
EBIT Next Year45.04%
EBIT Next 3Y21.24%
EBIT Next 5YN/A
FCF growth 1Y78.62%
FCF growth 3Y14.2%
FCF growth 5Y20.07%
OCF growth 1Y48.1%
OCF growth 3Y17.14%
OCF growth 5Y15.02%