TXRH  Texas Roadhouse Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Restaurants

Market Cap.

3.08B

Vuru Grade

39.16/100

Current Price

$43.53
+0.00 (+0.00%)

Growth Price

$19.00
Overvalued by 56.35%

Stability Price

$1.81
Overvalued by 95.83%

Company Metrics

  • P/E 26.71
  • P/S 1.55
  • P/B 4.1
  • EPS 1.63
  • Cash ROIC 10.20%
  • Cash Ratio 0.40
  • Dividend 0.84 / 1.94%
  • Avg. Vol. 959,774.00
  • Shares 70.76M
  • Market Cap. 3.08B

Company Description

Texas Roadhouse, Inc., together with its subsidiaries, operates a full-service, casual dining restaurant chain in the United States. It operates restaurants under the Texas Roadhouse and Aspen Creek names. The company also provides supervisory and administrative services for other license and franchise restaurants. As of December 28, 2010, it operated 345 Texas Roadhouse restaurants comprising 274... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Edgewood Farms update: Freddy's opens, Main Event for May, Texas Roadhouse for ...
Kansas City Star (blog) - Mar 24, 2017
Texas Roadhouse Inc., based in Louisville, Ky., was founded in 1993 with the opening of the first Texas Roadhouse restaurant in Clarksville, Ind.
Texas Roadhouse: Their Rolls Are Not Worth The Risk
Seeking Alpha - Mar 16, 2017
Texas Roadhouse's goal is to offer legendary food and legendary service to every guest that walks in the door. Each guest is greeted with friendly waitstaff, all you can eat peanuts, and the amazing Fresh-Baked Bread with homemade honey cinnamon butter ...
Texas Roadhouse Inc. (TXRH) Moves Higher on Volume Spike for March 17 - Equities.com
Texas Roadhouse, Inc. (TXRH): What's the Story? - StockNewsJournal
Texas Roadhouse Gets Crushed By High Expectations
Seeking Alpha - Feb 27, 2017
I was a long time bull on Texas Roadhouse (NASDAQ:TXRH) because it seemed to have taken the market a long time to figure out that a tremendous growth story was in play.
Can Texas Roadhouse Stock Bounce Back After Last Week's 12% Drop? - Motley Fool
Guess Who Picked Up Texas Roadhouse Inc. (NASDAQ:TXRH) Shares - Small Cap Exclusive (press release)
Stock Volatility Risk Alert: Texas Roadhouse Inc Stock Volatility Hits An ...
CML News - Mar 23, 2017
Before we cover the full analysis we make a quick alert here that Texas Roadhouse Inc (NASDAQ:TXRH) has seen its stock price whip around at an unsually high level.
Buy or Sell? Average Brokerage Ratings on Texas Roadhouse, Inc. (TXRH), Roper ...
StockNewsJournal - Mar 24, 2017
Investors who are keeping close eye on the stock of Texas Roadhouse, Inc. (NASDAQ:TXRH) established that the company was able to keep return on investment at 14.52 in the trailing twelve month while Reuters data showed that industry's average stands ...
Stock Returns: The Cheesecake Factory Incorporated (NASDAQ:CAKE) is Beating ...
CML News - Mar 24, 2017
This is a snapshot to compare the stock returns for The Cheesecake Factory Incorporated (NASDAQ:CAKE) versus Texas Roadhouse Inc (NASDAQ:TXRH) . The stock return points we compare look at the last three-months, six-months and twelve-months.
Credit Agricole SA Decreases Stake in Texas Roadhouse Inc (TXRH)
The Cerbat Gem - Mar 24, 2017
Texas Roadhouse logo Credit Agricole S A reduced its stake in Texas Roadhouse Inc (NASDAQ:TXRH) by 91.0% during the fourth quarter, according to its most recent Form 13F filing with the SEC.
The Fmr LLC Sells 348227 Shares of Texas Roadhouse Inc (TXRH) - Petro Global News 24
Texas Roadhouse Inc (TXRH) Receives Consensus Rating of “Hold” from Brokerages
Chaffey Breeze - Mar 23, 2017
Texas Roadhouse logo Shares of Texas Roadhouse Inc (NASDAQ:TXRH) have received a consensus rating of “Hold” from the twenty ratings firms that are covering the firm.
The Texas Roadhouse Inc (TXRH) Upgraded to “Buy” by BTIG Research - Petro Global News 24
Texas Roadhouse Inc (TXRH) Lifted to Buy at BTIG Research - The Cerbat Gem
Stock Returns: Chipotle Mexican Grill Inc (NYSE:CMG) versus Texas Roadhouse ...
CML News - Mar 21, 2017
This is a snapshot to compare the stock returns for Chipotle Mexican Grill Inc (NYSE:CMG) versus Texas Roadhouse Inc (NASDAQ:TXRH) .
Texas Roadhouse Blowing Smoke To Delay Bias Retrial: EEOC
Law360 (subscription) - Mar 9, 2017
Law360, New York (March 8, 2017, 7:03 PM EST) -- The Equal Employment Opportunity Commission shot back in Massachusetts federal court on Wednesday at Texas Roadhouse Inc.'s bid to delay an upcoming retrial in an age-discrimination suit because of ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for TXRH to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate TXRH's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$43.53 Current Price

$19.00 Growth Price (DCF)

Overvalued by 56.35%


Growth Rate Assumed by Market: 33.07%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$1.81 Stability Price (EPV)

Overvalued by 95.83%


Discount Rate: 15.0%

$31.15 Book Price

Overvalued by 28.45%


Satisfactory Cash Return on Invested Capital over the past 5 years

TXRH has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely TXRH could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

TXRH has created $10.20 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 61.06M 62.36M 66.27M 54.47M 92.33M
divided by
Invested Capital 550.85M 607.59M 641.05M 716.73M 787.50M
Cash ROIC 11.08% 10.26% 10.34% 7.60% 11.72%

Satisfactory Return on Equity over the past 5 years

TXRH has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

TXRH has generated $14.90 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 73.80M 84.09M 90.98M 101.26M 120.57M
divided by
Stockholders' Equity 525.08M 587.66M 607.89M 669.66M 750.23M
Return on Equity 14.06% 14.31% 14.97% 15.12% 16.07%

Good Business Performance over the past 10 years

It's likely TXRH has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is TXRH has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

TXRH has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -25.36M -1.32M 69.61M 74.86M 55.75M 61.06M 62.36M 66.27M 54.47M 92.33M

Good Balance Sheet

TXRH's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 11.56M 5.26M 46.86M 82.22M 73.73M 81.75M 94.87M 86.12M 59.33M 112.94M
Current Assets 41.63M 34.81M 74.32M 113.92M 111.97M 122.47M 145.74M 147.73M 133.81M 200.26M
Total Assets 546.03M 622.66M 662.07M 702.80M 740.67M 791.25M 877.64M 943.14M 1.03B 1.18B
Current Liabilities 88.26M 99.64M 108.20M 112.06M 136.37M 158.66M 175.18M 215.97M 256.64M 279.53M
Total Liabilities 178.65M 262.67M 241.70M 206.19M 248.77M 266.17M 289.99M 335.25M 363.04M 429.75M
Stockholder' Equity 367.38M 359.99M 420.37M 496.62M 491.90M 525.08M 587.66M 607.89M 669.66M 750.23M
Current Ratio 0.47 0.35 0.69 1.02 0.82 0.77 0.83 0.68 0.52 0.72
TL-to-TA 0.33 0.42 0.37 0.29 0.34 0.34 0.33 0.36 0.35 0.36

Consistent Reinvestment of Profits over the past 10 years

TXRH has consistently retained profits. This may put TXRH in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, TXRH can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 103.07M 141.24M 188.72M 247.01M 288.43M 327.51M 374.19M 419.44M 468.68M 530.72M
Retained Earnings Growth - 37.03% 33.62% 30.89% 16.77% 13.55% 14.25% 12.09% 11.74% 13.24%

Competitive Industry over the past 10 years

TXRH is likely operating in an industry with medium to low barriers to entry. This may mean that TXRH doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that TXRH invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.55 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 39.33M 38.17M 47.48M 58.29M 63.96M 73.80M 84.09M 90.98M 101.26M 120.57M
divided by
Revenue 735.09M 880.46M 942.33M 1.00B 1.11B 1.26B 1.42B 1.58B 1.81B 1.99B
Net Profit Margin 5.35% 4.34% 5.04% 5.80% 5.77% 5.84% 5.91% 5.75% 5.60% 6.06%

Inconsistent Gross Profit Margins over the past 10 years

TXRH has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$27.01 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 133.52M 145.70M 173.93M 193.45M 1.11B 241.84M 265.03M 290.37M 363.87M 425.97M
divided by
Revenue 735.09M 880.46M 942.33M 1.00B 1.11B 1.26B 1.42B 1.58B 1.81B 1.99B
Gross Margin 18.16% 16.55% 18.46% 19.25% 100.00% 19.14% 18.63% 18.35% 20.13% 21.40%

High Capital Intensity over the past 10 years

TXRH spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

152.22% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 101.92M 102.54M 45.52M 45.05M 81.76M 84.88M 111.48M 125.45M 173.48M 164.74M
divided by
Net Income 39.33M 38.17M 47.48M 58.29M 63.96M 73.80M 84.09M 90.98M 101.26M 120.57M
Capital Expenditure Ratio 259.18% 268.64% 95.87% 77.29% 127.82% 115.01% 132.57% 137.89% 171.31% 136.63%

Strong Dividend History over the past 10 years

TXRH has consistently distributed a dividend for the past 8 years. This suggests TXRH is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - 2.07M 2.21M 19.28M 27.20M 49.99M 35.19M 50.09M 52.05M
divided by
Shares Outstanding 76.83M 74.08M 71.30M 72.93M 72.28M 71.49M 71.36M 70.61M 70.75M 71.05M
Dividend Paid Per Share - - 0.03 0.03 0.27 0.38 0.70 0.50 0.71 0.73
Price at Year End 10.78 7.15 11.10 17.09 14.90 16.60 27.83 33.79 35.83 48.24
Dividend Yield - - 0.26% 0.18% 1.79% 2.29% 2.52% 1.47% 1.98% 1.52%

Strong History of Stock Buybacks over the past 10 years

TXRH has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 76.83M 74.08M 71.30M 72.93M 72.28M 71.49M 71.36M 70.61M 70.75M 71.05M
Stock Bought Back - 3.72% 3.90% -2.24% 0.90% 1.11% 0.17% 1.07% -0.20% -0.43%
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