Texas Roadhouse Inc

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TXRH : NASDAQ : Services
$50.03 up 0.18 | 0.36%
Today's Range: 49.86 - 50.7399
Avg. Daily Volume: 857100.0
06/26/17 - 11:01 AM ET

Financial Analysis


TEXAS ROADHOUSE INC's gross profit margin for the first quarter of its fiscal year 2017 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 0.57 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 11.26% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)567.69515.56
EBITDA ($mil)86.5277.85
EBIT ($mil)63.9258.31
Net Income ($mil)34.3135.59


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)137.5195.99
Total Assets ($mil)1197.891061.61
Total Debt ($mil)52.5150.66
Equity ($mil)769.46691.54


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin20.5420.8
EBITDA Margin15.2415.1
Operating Margin11.2611.31
Sales Turnover1.711.75
Return on Assets9.549.43
Return on Equity14.8514.48
Debt Q1 FY17 Q1 FY16
Current Ratio0.670.63
Debt/Capital0.060.07
Interest Expense0.330.31
Interest Coverage192.54191.18


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)70.9170.32
Div / share0.210.19
EPS0.480.5
Book value / share10.859.83
Institutional Own % n/a n/a
Avg Daily Volume853379.0959227.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 38.52 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 4.60 indicates a significant premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 10.91. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TXRH 31.23 Peers 38.52   TXRH 12.34 Peers 19.75

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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TXRH 23.02 Peers 25.90   TXRH 1.76 Peers 1.73

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXRH 4.60 Peers 10.91   TXRH 13.47 Peers 109.06

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TXRH 1.73 Peers 3.49   TXRH 9.67 Peers 3.97

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 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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