Texas Roadhouse Inc

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TXRH : NASDAQ : Services
$45.28 | %
Today's Range: 44.99 - 45.49
Avg. Daily Volume: 933900.0
04/21/17 - 4:00 PM ET

Financial Analysis

TEXAS ROADHOUSE INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. TEXAS ROADHOUSE INC has weak liquidity. Currently, the Quick Ratio is 0.60 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 12.03% 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.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)484.71454.35
EBITDA ($mil)53.6952.41
EBIT ($mil)31.4433.71
Net Income ($mil)20.7322.98

Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)112.9459.33
Total Assets ($mil)1179.971032.71
Total Debt ($mil)52.5525.69
Equity ($mil)750.23669.66

Profitability Q4 FY16 Q4 FY15
Gross Profit Margin17.8218.27
EBITDA Margin11.0711.53
Operating Margin6.497.42
Sales Turnover1.691.75
Return on Assets9.799.38
Return on Equity15.414.46
Debt Q4 FY16 Q4 FY15
Current Ratio0.720.52
Interest Expense0.350.48
Interest Coverage89.0670.38

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)70.6270.09
Div / share0.190.17
Book value / share10.629.55
Institutional Own % n/a n/a
Avg Daily Volume924796.0807126.0


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 42.59 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.92. Conducting a second comparison, its price-to-book ratio of 4.25 indicates a premium versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 9.29. 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 27.90 Peers 42.59   TXRH 12.41 Peers 18.48

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 significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TXRH 21.22 Peers 24.79   TXRH 1.86 Peers 1.74

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.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXRH 4.25 Peers 9.29   TXRH 18.24 Peers 80.05

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 1.60 Peers 3.33   TXRH 10.14 Peers 2.67

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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