New Lifetime High Reached By Texas Roadhouse (TXRH)

Trade-Ideas LLC identified Texas Roadhouse (TXRH) as a new lifetime high candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Texas Roadhouse

(

TXRH

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Texas Roadhouse as such a stock due to the following factors:

  • TXRH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.9 million.
  • TXRH has traded 7,133 shares today.
  • TXRH is trading at a new lifetime high.

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More details on TXRH:

Texas Roadhouse, Inc., together with its subsidiaries, operates full-service casual dining restaurants in the United States and internationally. The company operates and franchises its restaurants under the Texas Roadhouse name. It also operates sports restaurants under the Bubba's 33 name. The stock currently has a dividend yield of 1.6%. TXRH has a PE ratio of 33. Currently there are 5 analysts that rate Texas Roadhouse a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Texas Roadhouse has been 839,800 shares per day over the past 30 days. Texas Roadhouse has a market cap of $3.2 billion and is part of the services sector and leisure industry. The stock has a beta of 0.53 and a short float of 10.3% with 11.04 days to cover. Shares are up 30.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Texas Roadhouse as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • TXRH's revenue growth has slightly outpaced the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 12.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TEXAS ROADHOUSE INC has improved earnings per share by 8.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TEXAS ROADHOUSE INC increased its bottom line by earning $1.37 versus $1.23 in the prior year. This year, the market expects an improvement in earnings ($1.76 versus $1.37).
  • TXRH's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.49 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • Net operating cash flow has increased to $64.89 million or 12.47% when compared to the same quarter last year. Despite an increase in cash flow, TEXAS ROADHOUSE INC's average is still marginally south of the industry average growth rate of 14.82%.

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