Texas Roadhouse Inc

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TXRH : NASDAQ : Services
$48.72 -0.11 | -0.23%
Today's Range: 48.23 - 48.93
Avg. Daily Volume: 646000.0
08/18/17 - 3:00 PM ET

Financial Analysis


TEXAS ROADHOUSE INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not.

During the same period, stockholders' equity ("net worth") has increased by 11.14% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)566.26508.81
EBITDA ($mil)77.3270.02
EBIT ($mil)54.2149.78
Net Income ($mil)37.5833.61


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)116.5195.31
Total Assets ($mil)1199.281073.2
Total Debt ($mil)52.4750.62
Equity ($mil)797.39717.43


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin19.5219.88
EBITDA Margin13.6513.76
Operating Margin9.579.78
Sales Turnover1.751.79
Return on Assets9.8610.49
Return on Equity14.8315.7
Debt Q2 FY17 Q2 FY16
Current Ratio0.70.67
Debt/Capital0.060.07
Interest Expense0.380.31
Interest Coverage143.04161.11


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)70.9170.43
Div / share0.210.19
EPS0.530.47
Book value / share11.2410.19
Institutional Own % n/a n/a
Avg Daily Volume682928.01144667.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 41.67 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 24.31. Conducting a second comparison, its price-to-book ratio of 4.35 indicates a premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 10.01. 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 29.48 Peers 41.67   TXRH 12.78 Peers 19.65

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TXRH 22.66 Peers 24.25   TXRH 1.60 Peers 2.81

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.

 

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXRH 4.35 Peers 10.01   TXRH 5.06 Peers 53.47

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 1.65 Peers 3.23   TXRH 9.57 Peers 7.46

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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