TEXAS ROADHOUSE INC (TXRH) Stock Fundamental Analysis
USA - NASDAQ:TXRH - US8826811098 - Common Stock
176.79 USD
-0.69 (-0.39%)
Overall TXRH gets a fundamental rating of 7 out of 10. We evaluated TXRH against 134 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 quite expensive at the moment. 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.
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 (13.45%) is better than 90.30% of its industry peers.
TXRH has a better Return On Equity (30.19%) than 84.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.71%, TXRH belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TXRH is significantly above the industry average of 10.67%.
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.
TXRH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.22%, TXRH is in line with its industry, outperforming 52.24% of the companies in the same industry.
In the last couple of years the Operating Margin of TXRH has grown nicely.
TXRH has a Gross Margin of 66.38%. This is amongst the best in the industry. TXRH outperforms 80.60% 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
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.
Compared to 5 years ago, TXRH has less shares outstanding
The debt/assets ratio for TXRH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.67 indicates that TXRH is not in any danger for bankruptcy at the moment.
TXRH has a better Altman-Z score (6.67) than 87.31% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.67 |
ROIC/WACC2.05
WACC8.66%
2.3 Liquidity
TXRH has a Current 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.
The Current ratio of TXRH (0.45) is worse than 78.36% of its industry peers.
A Quick Ratio of 0.39 indicates that TXRH may have some problems paying its short term obligations.
TXRH has a Quick ratio of 0.39. This is in the lower half of the industry: TXRH underperforms 78.36% 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
TXRH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.87%, which is quite good.
The Earnings Per Share has been growing by 21.34% on average over the past years. This is a very strong growth
TXRH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.59%.
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
Based on estimates for the next years, TXRH will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.72% on average per year.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y3.29%
EPS Next 2Y8.43%
EPS Next 3Y10.34%
EPS Next 5Y12.72%
Revenue Next Year10.07%
Revenue Next 2Y9.97%
Revenue Next 3Y9.55%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.99, the valuation of TXRH can be described as expensive.
TXRH's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.42. TXRH is around the same levels.
A Price/Forward Earnings ratio of 23.24 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.
TXRH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 23.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXRH is valued a bit more expensive than 60.45% 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 | 31.45 | ||
| EV/EBITDA | 16.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TXRH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)8.2
PEG (5Y)1.26
EPS Next 2Y8.43%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
TXRH has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
TXRH's Dividend Yield is a higher than the industry average which is at 3.84.
TXRH's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP39.19%
EPS Next 2Y8.43%
EPS Next 3Y10.34%
NASDAQ:TXRH (10/20/2025, 10:04:44 AM)
176.79
-0.69 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners96.05%
Inst Owner Change-0.28%
Ins Owners0.37%
Ins Owner Change-0.12%
Market Cap11.75B
Analysts72.22
Price Target200.28 (13.29%)
Short Float %3.66%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)0%
PT rev (3m)4.92%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-8.49%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 23.24 | ||
| P/S | 2.07 | ||
| P/FCF | 31.45 | ||
| P/OCF | 15.83 | ||
| P/B | 8.1 | ||
| P/tB | 9.74 | ||
| EV/EBITDA | 16.22 |
EPS(TTM)6.55
EY3.7%
EPS(NY)7.61
Fwd EY4.3%
FCF(TTM)5.62
FCFY3.18%
OCF(TTM)11.17
OCFY6.32%
SpS85.34
BVpS21.83
TBVpS18.15
PEG (NY)8.2
PEG (5Y)1.26
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 | 6.67 |
F-Score7
WACC8.66%
ROIC/WACC2.05
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 Y3.29%
EPS Next 2Y8.43%
EPS Next 3Y10.34%
EPS Next 5Y12.72%
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 3Y9.55%
Revenue Next 5Y3.74%
EBIT growth 1Y20.43%
EBIT growth 3Y20.23%
EBIT growth 5Y19.65%
EBIT Next Year43.38%
EBIT Next 3Y21.18%
EBIT Next 5Y20.38%
FCF growth 1Y78.62%
FCF growth 3Y14.2%
FCF growth 5Y20.07%
OCF growth 1Y48.1%
OCF growth 3Y17.14%
OCF growth 5Y15.02%