Texas Roadhouse Inc

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TXRH : NASDAQ : Services
$44.29 -0.31 | -0.70%
Today's Range: 44.07 - 44.74
Avg. Daily Volume: 866,900
08/30/16 - 4:00 PM ET

Financial Analysis


TEXAS ROADHOUSE INC's gross profit margin for the second 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 weak liquidity. Currently, the Quick Ratio is 0.53 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 11.29% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)508.81454.7
EBITDA ($mil)70.0248.51
EBIT ($mil)49.7831.7
Net Income ($mil)33.6121.14


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)95.3170.97
Total Assets ($mil)1073.2965.62
Total Debt ($mil)50.6250.76
Equity ($mil)717.43644.64


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin19.8816.94
EBITDA Margin13.7610.66
Operating Margin9.786.97
Sales Turnover1.791.77
Return on Assets10.499.41
Return on Equity15.714.1
Debt Q2 FY16 Q2 FY15
Current Ratio0.670.64
Debt/Capital0.070.07
Interest Expense0.310.5
Interest Coverage161.1164.03


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)70.4370.05
Div / share0.190.17
EPS0.470.3
Book value / share10.199.2
Institutional Own % n/a n/a
Avg Daily Volume858576.0824954.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 30.78 for the Hotels, Restaurants & Leisure industry and a premium compared to the S&P 500 average of 25.23. To use another comparison, its price-to-book ratio of 4.38 indicates a significant premium versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 39.50. 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 28.23 Peers 30.78   TXRH 12.68 Peers 14.31

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 22.13 Peers 25.43   TXRH 0.96 Peers 2.94

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 4.38 Peers 39.50   TXRH 22.48 Peers 32.41

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 1.64 Peers 2.87   TXRH 12.45 Peers 6.87

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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