TEXAS ROADHOUSE INC (TXRH) Fundamental Analysis & Valuation

NASDAQ:TXRH • US8826811098

Current stock price

170.89 USD
-0.74 (-0.43%)
At close:
170.89 USD
0 (0%)
After Hours:

This TXRH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. TXRH Profitability Analysis

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.
TXRH Yearly Net Income VS EBIT VS OCF VS FCFTXRH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • TXRH's Return On Assets of 11.43% is amongst the best of the industry. TXRH outperforms 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 84.92% of the companies in the same industry.
  • TXRH's Return On Invested Capital of 15.37% is amongst the best of the industry. TXRH outperforms 82.54% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TXRH is significantly above the industry average of 10.60%.
Industry RankSector Rank
ROA 11.43%
ROE 27.76%
ROIC 15.37%
ROA(3y)11.98%
ROA(5y)11.28%
ROE(3y)28.8%
ROE(5y)27.24%
ROIC(3y)16.29%
ROIC(5y)15.38%
TXRH Yearly ROA, ROE, ROICTXRH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • TXRH has a Profit Margin of 6.90%. This is in the better half of the industry: TXRH outperforms 66.67% of its industry peers.
  • TXRH's Profit Margin has improved in the last couple of years.
  • TXRH's Operating Margin of 8.08% is in line compared to the rest of the industry. TXRH outperforms 47.62% of its industry peers.
  • In the last couple of years the Operating Margin of TXRH has grown nicely.
  • 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 RankSector 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%
TXRH Yearly Profit, Operating, Gross MarginsTXRH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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8

2. TXRH Health Analysis

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
  • Compared to 5 years ago, TXRH has less shares outstanding
  • Compared to 1 year ago, TXRH has an improved debt to assets ratio.
TXRH Yearly Shares OutstandingTXRH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
TXRH Yearly Total Debt VS Total AssetsTXRH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • TXRH has an Altman-Z score of 5.77. This indicates that TXRH is financially healthy and has little risk of bankruptcy at the moment.
  • TXRH has a better Altman-Z score (5.77) than 88.89% of its industry peers.
  • TXRH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.77
ROIC/WACC1.73
WACC8.9%
TXRH Yearly LT Debt VS Equity VS FCFTXRH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

2.3 Liquidity

  • TXRH has a Current Ratio of 0.50. 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 Current ratio (0.50) than 80.95% of its industry peers.
  • A Quick Ratio of 0.45 indicates that TXRH may have some problems paying its short term obligations.
  • TXRH has a worse Quick ratio (0.45) than 80.16% 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 RankSector Rank
Current Ratio 0.5
Quick Ratio 0.45
TXRH Yearly Current Assets VS Current LiabilitesTXRH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. TXRH Growth Analysis

3.1 Past

  • TXRH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.87%.
  • TXRH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.38% yearly.
  • Looking at the last year, TXRH shows a quite strong growth in Revenue. The Revenue has grown by 9.39% in the last year.
  • Measured over the past years, TXRH shows a quite strong growth in Revenue. The Revenue has been growing by 19.64% on average per year.
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 13.41% 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 Y5.43%
EPS Next 2Y13.23%
EPS Next 3Y15.91%
EPS Next 5Y13.41%
Revenue Next Year10.93%
Revenue Next 2Y10.12%
Revenue Next 3Y9.62%
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.
TXRH Yearly Revenue VS EstimatesTXRH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
TXRH Yearly EPS VS EstimatesTXRH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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3

4. TXRH Valuation Analysis

4.1 Price/Earnings Ratio

  • TXRH is valuated quite expensively with a Price/Earnings ratio of 28.06.
  • Compared to the rest of the industry, the Price/Earnings ratio of TXRH is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, TXRH is valued at the same level.
  • The Price/Forward Earnings ratio is 26.62, which means the current valuation is very expensive for TXRH.
  • The rest of the industry has a similar Price/Forward Earnings ratio as TXRH.
  • TXRH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.28.
Industry RankSector Rank
PE 28.06
Fwd PE 26.62
TXRH Price Earnings VS Forward Price EarningsTXRH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 65.08% of the companies in the same industry are cheaper than TXRH, based on the Enterprise Value to EBITDA ratio.
  • 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 RankSector Rank
P/FCF 33.53
EV/EBITDA 16.4
TXRH Per share dataTXRH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TXRH does not grow enough to justify the current Price/Earnings ratio.
  • TXRH has an outstanding profitability rating, which may justify a higher PE ratio.
  • TXRH's earnings are expected to grow with 15.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.17
PEG (5Y)0.41
EPS Next 2Y13.23%
EPS Next 3Y15.91%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TXRH Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.77%, TXRH has a reasonable but not impressive dividend return.
  • TXRH's Dividend Yield is a higher than the industry average which is at 1.12.
  • TXRH's Dividend Yield is comparable with the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 1.77%

5.2 History

  • On average, the dividend of TXRH grows each year by 49.88%, 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)49.88%
Div Incr Years4
Div Non Decr Years4
TXRH Yearly Dividends per shareTXRH Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • TXRH pays out 44.45% of its income as dividend. 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.
DP44.45%
EPS Next 2Y13.23%
EPS Next 3Y15.91%
TXRH Yearly Income VS Free CF VS DividendTXRH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
TXRH Dividend Payout.TXRH Dividend Payout, showing the Payout Ratio.TXRH Dividend Payout.PayoutRetained Earnings

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TXRH Fundamentals: All Metrics, Ratios and Statistics

TEXAS ROADHOUSE INC

NASDAQ:TXRH (3/20/2026, 6:29:17 PM)

After market: 170.89 0 (0%)

170.89

-0.74 (-0.43%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-19
Earnings (Next)05-06
Inst Owners99.27%
Inst Owner Change1.07%
Ins Owners0.4%
Ins Owner Change0.45%
Market Cap11.27B
Revenue(TTM)5.88B
Net Income(TTM)405.55M
Analysts72.63
Price Target199.32 (16.64%)
Short Float %4.36%
Short Ratio2.92
Dividend
Industry RankSector Rank
Dividend Yield 1.77%
Yearly Dividend2.72
Dividend Growth(5Y)49.88%
DP44.45%
Div Incr Years4
Div Non Decr Years4
Ex-Date03-17
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)1.05%
PT rev (3m)4.43%
EPS NQ rev (1m)4.69%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)-4.99%
EPS NY rev (3m)-4.88%
Revenue NQ rev (1m)1.46%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.42%
Valuation
Industry RankSector Rank
PE 28.06
Fwd PE 26.62
P/S 1.92
P/FCF 33.53
P/OCF 15.43
P/B 7.71
P/tB 9.38
EV/EBITDA 16.4
EPS(TTM)6.09
EY3.56%
EPS(NY)6.42
Fwd EY3.76%
FCF(TTM)5.1
FCFY2.98%
OCF(TTM)11.07
OCFY6.48%
SpS89.16
BVpS22.16
TBVpS18.21
PEG (NY)5.17
PEG (5Y)0.41
Graham Number55.1
Profitability
Industry RankSector Rank
ROA 11.43%
ROE 27.76%
ROCE 17.99%
ROIC 15.37%
ROICexc 16.2%
ROICexgc 18.08%
OM 8.08%
PM (TTM) 6.9%
GM 65.13%
FCFM 5.72%
ROA(3y)11.98%
ROA(5y)11.28%
ROE(3y)28.8%
ROE(5y)27.24%
ROIC(3y)16.29%
ROIC(5y)15.38%
ROICexc(3y)17.56%
ROICexc(5y)17%
ROICexgc(3y)19.3%
ROICexgc(5y)18.66%
ROCE(3y)19.07%
ROCE(5y)18%
ROICexgc growth 3Y0.53%
ROICexgc growth 5Y60.8%
ROICexc growth 3Y0.05%
ROICexc growth 5Y60.27%
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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 190.67%
Cap/Sales 6.7%
Interest Coverage 484.29
Cash Conversion 107.09%
Profit Quality 82.87%
Current Ratio 0.5
Quick Ratio 0.45
Altman-Z 5.77
F-Score5
WACC8.9%
ROIC/WACC1.73
Cap/Depr(3y)205.36%
Cap/Depr(5y)190.75%
Cap/Sales(3y)6.93%
Cap/Sales(5y)6.54%
Profit Quality(3y)82.15%
Profit Quality(5y)90.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.87%
EPS 3Y15.33%
EPS 5Y68.38%
EPS Q2Q%-26.01%
EPS Next Y5.43%
EPS Next 2Y13.23%
EPS Next 3Y15.91%
EPS Next 5Y13.41%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y13.55%
Revenue growth 5Y19.64%
Sales Q2Q%3.07%
Revenue Next Year10.93%
Revenue Next 2Y10.12%
Revenue Next 3Y9.62%
Revenue Next 5Y9.05%
EBIT growth 1Y-8.24%
EBIT growth 3Y13.87%
EBIT growth 5Y78.66%
EBIT Next Year45.02%
EBIT Next 3Y24.91%
EBIT Next 5Y18.45%
FCF growth 1Y-15.83%
FCF growth 3Y8.16%
FCF growth 5Y34.62%
OCF growth 1Y-3.13%
OCF growth 3Y12.58%
OCF growth 5Y25.94%

TEXAS ROADHOUSE INC / TXRH Fundamental Analysis 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 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 28.06 and the Price/Book (PB) ratio is 7.71.


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%.