Texas Roadhouse Inc.
Find Ratings ReportsTEXAS ROADHOUSE INC's gross profit margin for the fourth quarter of its fiscal year 2023 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 subsector this quarter as compared to the same quarter a year ago. TEXAS ROADHOUSE INC has very weak liquidity. Currently, the Quick Ratio is 0.38 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 12.74% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 1164.36 | 1009.53 |
EBITDA ($mil) | 124.21 | 104.32 |
EBIT ($mil) | 83.77 | 68.85 |
Net Income ($mil) | 72.43 | 59.87 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 104.25 | 173.86 |
Total Assets ($mil) | 2793.38 | 2525.67 |
Total Debt ($mil) | 773.65 | 756.11 |
Equity ($mil) | 1141.66 | 1012.64 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 15.78 | 15.09 |
EBITDA Margin | 10.66 | 10.33 |
Operating Margin | 7.19 | 6.82 |
Sales Turnover | 1.66 | 1.59 |
Return on Assets | 10.91 | 10.68 |
Return on Equity | 26.7 | 26.65 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.48 | 0.61 |
Debt/Capital | 0.4 | 0.43 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 66.79 | 66.97 |
Div / share | 0.55 | 0.46 |
EPS | 1.08 | 0.89 |
Book value / share | 17.09 | 15.12 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 849943.0 | 935945.0 |
BUY. This stock's P/E ratio indicates a significant discount compared to an average of 44.29 for the Food Services and Drinking Places subsector and a premium compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 8.95 indicates a significant premium versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 13.92. The price-to-sales ratio is well below both the S&P 500 average and the subsector 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.
Price/Earnings |
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Price/Cash Flow |
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TXRH 33.76 | Peers 44.29 | TXRH 18.08 | Peers 24.08 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. TXRH is trading at a 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 |
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Price to Earnings/Growth |
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TXRH 24.35 | Peers 28.31 | TXRH 1.45 | Peers 3.38 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector 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 significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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TXRH 8.95 | Peers 13.92 | TXRH 14.10 | Peers 40.00 | |||||||||||||||||||||
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 |
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Sales Growth |
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TXRH 2.21 | Peers 5.79 | TXRH 15.36 | Peers 10.97 | |||||||||||||||||||||
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 subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. TXRH has a sales growth rate that significantly exceeds its peers. |
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