Texas Roadhouse Inc

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TXRH : NASDAQ : Services
$47.79 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 638400.0
02/21/17 - 4:00 PM ET

Financial Analysis

TEXAS ROADHOUSE INC's gross profit margin for the third quarter of its fiscal year 2016 has increased 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 very weak liquidity. Currently, the Quick Ratio is 0.50 which clearly 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 11.73% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)481.64438.09
EBITDA ($mil)60.6148.4
EBIT ($mil)39.6730.56
Net Income ($mil)25.6820.48

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)81.7172.62
Total Assets ($mil)1084.52992.47
Total Debt ($mil)52.5970.73
Equity ($mil)735.59658.31

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin18.8117.37
EBITDA Margin12.5811.04
Operating Margin8.246.97
Sales Turnover1.811.77
Return on Assets10.869.32
Return on Equity16.0214.05
Debt Q3 FY16 Q3 FY15
Current Ratio0.640.56
Interest Expense0.290.47
Interest Coverage137.7465.01

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)70.5270.18
Div / share0.190.17
Book value / share10.439.38
Institutional Own % n/a n/a
Avg Daily Volume630216.0922135.0


BUY. The current P/E ratio indicates a discount compared to an average of 39.05 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 4.61 indicates a significant premium versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 8.20. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TXRH 29.16 Peers 39.05   TXRH 13.20 Peers 17.57

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TXRH 24.36 Peers 24.32   TXRH 1.00 Peers 3.22

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

TXRH is trading at a premium to 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXRH 4.61 Peers 8.20   TXRH 25.95 Peers 79.94

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TXRH 1.73 Peers 2.99   TXRH 11.54 Peers 3.67

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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