0.15 | 0.62%
TEXAS ROADHOUSE INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. TEXAS ROADHOUSE INC has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.85% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 359.68 | 324.87 |
| EBITDA ($mil) | 50.38 | 45.75 |
| EBIT ($mil) | 38.17 | 34.4 |
| Net Income ($mil) | 26.17 | 18.87 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 95.45 | 77.32 |
| Total Assets ($mil) | 801.43 | 752.74 |
| Total Debt ($mil) | 51.52 | 51.83 |
| Equity ($mil) | 550.68 | 510.57 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 19.64 | 19.82 |
| EBITDA Margin | 14.0 | 14.08 |
| Operating Margin | 10.61 | 10.59 |
| Sales Turnover | 1.62 | 1.53 |
| Return on Assets | 9.79 | 8.37 |
| Return on Equity | 14.24 | 12.34 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 0.91 | 0.82 |
| Debt/Capital | 0.09 | 0.09 |
| Interest Expense | 0.6 | 0.61 |
| Interest Coverage | 64.15 | 56.86 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 69.84 | 69.88 |
| Div / share | 0.12 | 0.09 |
| EPS | 0.37 | 0.27 |
| Book value / share | 7.88 | 7.31 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 984386.0 | 725858.0 |
BUY. The current P/E ratio indicates a discount compared to an average of 29.81 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 19.08. Conducting a second comparison, its price-to-book ratio of 3.05 indicates a premium versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 7.92. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, TEXAS ROADHOUSE INC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TXRH 22.06 | Peers 29.81 | TXRH 11.31 | Peers 13.90 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. TXRH is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TXRH is trading at a discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| TXRH 18.64 | Peers 22.31 | TXRH 1.42 | Peers 1.62 | |||||||||||||||||||||
|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations. TXRH is trading at a valuation on par with its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. TXRH trades at a discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| TXRH 3.05 | Peers 7.92 | TXRH 23.86 | Peers 62.38 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TXRH is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, TXRH is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| TXRH 1.29 | Peers 2.82 | TXRH 12.85 | Peers 7.25 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TXRH is trading at a significant discount to its industry on this measurement. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. TXRH has a sales growth rate that significantly exceeds its peers. |
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