TEXAS ROADHOUSE INC (TXRH) Stock Fundamental Analysis
NASDAQ:TXRH - Nasdaq - US8826811098 - Common Stock - Currency: USD
Overall TXRH gets a fundamental rating of 6 out of 10. We evaluated TXRH against 133 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. While showing a medium growth rate, TXRH is valued expensive at the moment. With these ratings, TXRH could be worth investigating further 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.
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 Return On Assets of 13.60%. This is amongst the best in the industry. TXRH outperforms 90.98% of its industry peers.
With an excellent Return On Equity value of 31.45%, TXRH belongs to the best of the industry, outperforming 84.96% of the companies in the same industry.
TXRH has a better Return On Invested Capital (18.33%) than 90.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TXRH is above the industry average of 13.97%.
The last Return On Invested Capital (18.33%) for TXRH is above the 3 year average (16.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.6% | ||
| ROE | 31.45% | ||
| ROIC | 18.33% |
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
The Profit Margin of TXRH (7.89%) is better than 63.16% of its industry peers.
In the last couple of years the Profit Margin of TXRH has grown nicely.
TXRH has a Operating Margin (9.44%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TXRH has grown nicely.
TXRH has a Gross Margin of 66.71%. This is in the better half of the industry: TXRH outperforms 78.95% 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 | 9.44% | ||
| PM (TTM) | 7.89% | ||
| GM | 66.71% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TXRH is creating some 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
TXRH has an Altman-Z score of 6.72. This indicates that TXRH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.72, TXRH belongs to the best of the industry, outperforming 90.98% 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 | 6.72 |
ROIC/WACC1.15
WACC16.01%
2.3 Liquidity
TXRH has a Current Ratio of 0.47. 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's Current ratio of 0.47 is on the low side compared to the rest of the industry. TXRH is outperformed by 78.20% of its industry peers.
TXRH has a Quick Ratio of 0.47. 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's Quick ratio of 0.41 is on the low side compared to the rest of the industry. TXRH is outperformed by 78.20% 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 | 0.47 | ||
| Quick Ratio | 0.41 |
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 15.09% in the past year. This is quite good.
TXRH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.28% yearly.
EPS 1Y (TTM)31.17%
EPS 3Y22.73%
EPS 5Y21.34%
EPS Q2Q%0.59%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%9.57%
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 10.35% yearly.
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 Year9.55%
Revenue Next 2Y9.23%
Revenue Next 3Y9.04%
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
The Price/Earnings ratio is 28.13, which means the current valuation is very expensive for TXRH.
TXRH's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. TXRH is around the same levels.
A Price/Forward Earnings ratio of 23.50 indicates a rather expensive valuation of TXRH.
The rest of the industry has a similar Price/Forward Earnings ratio as TXRH.
TXRH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 23.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TXRH indicates a slightly more expensive valuation: TXRH is more expensive than 63.91% of the companies listed in the same industry.
TXRH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TXRH is cheaper than 60.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.7 | ||
| EV/EBITDA | 16.85 |
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)4.65
PEG (5Y)1.32
EPS Next 2Y9.49%
EPS Next 3Y10.35%
5. Dividend
5.1 Amount
TXRH has a Yearly Dividend Yield of 1.46%. 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 3.73.
TXRH's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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
38.53% of the earnings are spent on dividend by TXRH. This is a low number and sustainable payout ratio.
The dividend of TXRH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.53%
EPS Next 2Y9.49%
EPS Next 3Y10.35%
182.29
-4.35 (-2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners97.04%
Inst Owner Change7.71%
Ins Owners0.38%
Ins Owner Change1.01%
Market Cap12.09B
Analysts72.35
Price Target188.99 (3.68%)
Short Float %4.94%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.44
Dividend Growth(5Y)10.95%
DP38.53%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.98%
Min EPS beat(2)-5.39%
Max EPS beat(2)3.44%
EPS beat(4)2
Avg EPS beat(4)-0.31%
Min EPS beat(4)-6.08%
Max EPS beat(4)6.8%
EPS beat(8)3
Avg EPS beat(8)-1.6%
EPS beat(12)5
Avg EPS beat(12)-2.48%
EPS beat(16)8
Avg EPS beat(16)-0.45%
Revenue beat(2)0
Avg Revenue beat(2)-0.8%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.37%
Min Revenue beat(4)-2.08%
Max Revenue beat(4)-0.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.6%
Revenue beat(12)1
Avg Revenue beat(12)-1.44%
Revenue beat(16)2
Avg Revenue beat(16)-1.24%
PT rev (1m)1.05%
PT rev (3m)-3.32%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.91%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 23.5 | ||
| P/S | 2.2 | ||
| P/FCF | 30.7 | ||
| P/OCF | 16.17 | ||
| P/B | 8.76 | ||
| P/tB | 10.56 | ||
| EV/EBITDA | 16.85 |
EPS(TTM)6.48
EY3.55%
EPS(NY)7.76
Fwd EY4.25%
FCF(TTM)5.94
FCFY3.26%
OCF(TTM)11.27
OCFY6.18%
SpS82.9
BVpS20.8
TBVpS17.26
PEG (NY)4.65
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.6% | ||
| ROE | 31.45% | ||
| ROCE | 21.29% | ||
| ROIC | 18.33% | ||
| ROICexc | 20.16% | ||
| ROICexgc | 22.55% | ||
| OM | 9.44% | ||
| PM (TTM) | 7.89% | ||
| GM | 66.71% | ||
| FCFM | 7.16% |
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-Score8
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 190.9% | ||
| Cap/Sales | 6.44% | ||
| Interest Coverage | 597.44 | ||
| Cash Conversion | 106.14% | ||
| Profit Quality | 90.74% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 6.72 |
F-Score8
WACC16.01%
ROIC/WACC1.15
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)15.09%
Revenue growth 3Y15.76%
Revenue growth 5Y14.28%
Sales Q2Q%9.57%
Revenue Next Year9.55%
Revenue Next 2Y9.23%
Revenue Next 3Y9.04%
Revenue Next 5Y3.74%
EBIT growth 1Y34.28%
EBIT growth 3Y20.23%
EBIT growth 5Y19.65%
EBIT Next Year45.42%
EBIT Next 3Y21.11%
EBIT Next 5YN/A
FCF growth 1Y58.12%
FCF growth 3Y14.2%
FCF growth 5Y20.07%
OCF growth 1Y45.82%
OCF growth 3Y17.14%
OCF growth 5Y15.02%