Texas Roadhouse Inc

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TXRH : NASDAQ : Services
$50.19 up 0.06 | 0.12%
Today's Range: 50.02 - 50.51
Avg. Daily Volume: 944000.0
12/09/16 - 3:59 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
Debt/Capital0.070.1
Interest Expense0.290.47
Interest Coverage137.7465.01


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)70.5270.18
Div / share0.190.17
EPS0.360.29
Book value / share10.439.38
Institutional Own % n/a n/a
Avg Daily Volume924258.0870756.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 31.00 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 25.37. To use another comparison, its price-to-book ratio of 4.59 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 7.46. 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 29.04 Peers 31.00   TXRH 13.15 Peers 15.55

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

TXRH is trading at a valuation on par with 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TXRH 23.90 Peers 30.39   TXRH 0.99 Peers 1.62

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TXRH is trading at a discount 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TXRH 4.59 Peers 7.46   TXRH 25.95 Peers 70.43

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 1.72 Peers 2.93   TXRH 11.54 Peers 4.74

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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