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
Debt/Capital0.070.04
Interest Expense0.350.48
Interest Coverage89.0670.38


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)70.6270.09
Div / share0.190.17
EPS0.290.32
Book value / share10.629.55
Institutional Own % n/a n/a
Avg Daily Volume924796.0807126.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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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