TEXAS ROADHOUSE INC (TXRH) Stock Fundamental Analysis
NASDAQ:TXRH - Nasdaq - US8826811098 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to TXRH. TXRH was compared to 135 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 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.
TXRH had a positive operating cash flow in the past year.
In the past 5 years TXRH has always been profitable.
TXRH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TXRH has a better Return On Assets (13.59%) than 91.11% of its industry peers.
TXRH's Return On Equity of 31.92% is amongst the best of the industry. TXRH outperforms 85.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.87%, TXRH belongs to the top of the industry, outperforming 90.37% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TXRH is above the industry average of 14.13%.
The last Return On Invested Capital (18.87%) for TXRH is above the 3 year average (16.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.59% | ||
| ROE | 31.92% | ||
| ROIC | 18.87% |
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 better Profit Margin (8.07%) than 64.44% of its industry peers.
TXRH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.64%, TXRH is in line with its industry, outperforming 50.37% of the companies in the same industry.
TXRH's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 66.78%, TXRH is doing good in the industry, outperforming 77.78% of the companies in the same industry.
TXRH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.64% | ||
| PM (TTM) | 8.07% | ||
| GM | 66.78% |
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.
TXRH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TXRH has an improved debt to assets ratio.
2.2 Solvency
TXRH has an Altman-Z score of 6.80. This indicates that TXRH is financially healthy and has little risk of bankruptcy at the moment.
TXRH's Altman-Z score of 6.80 is amongst the best of the industry. TXRH outperforms 90.37% 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 | 6.8 |
ROIC/WACC2.06
WACC9.15%
2.3 Liquidity
A Current Ratio of 0.62 indicates that TXRH may have some problems paying its short term obligations.
TXRH's Current ratio of 0.62 is on the low side compared to the rest of the industry. TXRH is outperformed by 64.44% of its industry peers.
A Quick Ratio of 0.57 indicates that TXRH may have some problems paying its short term obligations.
TXRH's Quick ratio of 0.57 is on the low side compared to the rest of the industry. TXRH is outperformed by 62.96% 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 | 0.62 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.17% 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.
The Revenue has grown by 16.01% in the past year. This is quite good.
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)31.17%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%0.59%
Revenue 1Y (TTM)16.01%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%9.57%
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 10.35% on average per year.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y6.05%
EPS Next 2Y9.49%
EPS Next 3Y10.35%
EPS Next 5YN/A
Revenue Next Year9.48%
Revenue Next 2Y9.19%
Revenue Next 3Y9.09%
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
With a Price/Earnings ratio of 29.32, 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 25.82. TXRH is around the same levels.
With a Price/Forward Earnings ratio of 24.49, TXRH is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TXRH is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.76. TXRH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.32 | ||
| Fwd PE | 24.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TXRH is valued a bit more expensive than the industry average as 62.22% of the companies are valued more cheaply.
TXRH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.61 | ||
| EV/EBITDA | 17.66 |
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.
The excellent profitability rating of TXRH may justify a higher PE ratio.
PEG (NY)4.84
PEG (5Y)1.37
EPS Next 2Y9.49%
EPS Next 3Y10.35%
5. Dividend
5.1 Amount
TXRH has a Yearly Dividend Yield of 1.45%.
TXRH's Dividend Yield is a higher than the industry average which is at 3.73.
Compared to the average S&P500 Dividend Yield of 2.39, TXRH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of TXRH is nicely growing with an annual growth rate of 10.95%!
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
TXRH pays out 37.56% of its income as dividend. This is a sustainable payout ratio.
TXRH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.56%
EPS Next 2Y9.49%
EPS Next 3Y10.35%
189.99
+1.26 (+0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners93.55%
Inst Owner Change7.75%
Ins Owners0.48%
Ins Owner Change1.03%
Market Cap12.60B
Analysts73.14
Price Target187.02 (-1.56%)
Short Float %5.52%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend2.44
Dividend Growth(5Y)10.95%
DP37.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.32%
Min EPS beat(2)-6.08%
Max EPS beat(2)3.44%
EPS beat(4)3
Avg EPS beat(4)1.5%
Min EPS beat(4)-6.08%
Max EPS beat(4)6.8%
EPS beat(8)3
Avg EPS beat(8)-1.88%
EPS beat(12)6
Avg EPS beat(12)-0.67%
EPS beat(16)9
Avg EPS beat(16)3.17%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-2.08%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-2.08%
Max Revenue beat(4)-0.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.41%
Revenue beat(12)1
Avg Revenue beat(12)-1.35%
Revenue beat(16)3
Avg Revenue beat(16)-0.79%
PT rev (1m)-4.32%
PT rev (3m)-7.62%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)-11.88%
EPS NY rev (1m)-2.52%
EPS NY rev (3m)-6.05%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.32 | ||
| Fwd PE | 24.49 | ||
| P/S | 2.35 | ||
| P/FCF | 31.61 | ||
| P/OCF | 16.75 | ||
| P/B | 9.29 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 17.66 |
EPS(TTM)6.48
EY3.41%
EPS(NY)7.76
Fwd EY4.08%
FCF(TTM)6.01
FCFY3.16%
OCF(TTM)11.34
OCFY5.97%
SpS80.89
BVpS20.45
TBVpS17.87
PEG (NY)4.84
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.59% | ||
| ROE | 31.92% | ||
| ROCE | 21.91% | ||
| ROIC | 18.87% | ||
| ROICexc | 21.06% | ||
| ROICexgc | 22.91% | ||
| OM | 9.64% | ||
| PM (TTM) | 8.07% | ||
| GM | 66.78% | ||
| FCFM | 7.43% |
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-Score9
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 198.89% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 581.08 | ||
| Cash Conversion | 108.3% | ||
| Profit Quality | 92.09% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 6.8 |
F-Score9
WACC9.15%
ROIC/WACC2.06
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)31.17%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%0.59%
EPS Next Y6.05%
EPS Next 2Y9.49%
EPS Next 3Y10.35%
EPS Next 5YN/A
Revenue 1Y (TTM)16.01%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%9.57%
Revenue Next Year9.48%
Revenue Next 2Y9.19%
Revenue Next 3Y9.09%
Revenue Next 5Y3.74%
EBIT growth 1Y46.12%
EBIT growth 3Y20.23%
EBIT growth 5Y19.65%
EBIT Next Year48.29%
EBIT Next 3Y21.74%
EBIT Next 5YN/A
FCF growth 1Y83.2%
FCF growth 3Y14.2%
FCF growth 5Y20.07%
OCF growth 1Y33.39%
OCF growth 3Y17.14%
OCF growth 5Y15.02%