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Market Cap

US$6.9b

Last Updated

2021/05/15 22:41 UTC

Data Sources

Company Financials +

Executive Summary

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Texas Roadhouse's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TXRH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TXRH's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-5.8%

TXRH

-2.7%

US Hospitality

-1.7%

US Market


1 Year Return

116.7%

TXRH

81.3%

US Hospitality

50.8%

US Market

Return vs Industry: TXRH exceeded the US Hospitality industry which returned 81% over the past year.

Return vs Market: TXRH exceeded the US Market which returned 50.5% over the past year.


Shareholder returns

TXRHIndustryMarket
7 Day-5.8%-2.7%-1.7%
30 Day1.7%-6.6%-1.2%
90 Day14.0%-3.0%0.4%
1 Year116.7%116.7%82.1%81.3%53.3%50.8%
3 Year73.3%66.5%8.0%3.2%61.5%51.4%
5 Year141.3%123.9%68.6%55.7%125.9%100.7%

Long-Term Price Volatility Vs. Market

How volatile is Texas Roadhouse's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Texas Roadhouse undervalued compared to its fair value and its price relative to the market?

86.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TXRH ($98.55) is trading above our estimate of fair value ($79.17)

Significantly Below Fair Value: TXRH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TXRH is poor value based on its PE Ratio (86.3x) compared to the US Hospitality industry average (37x).

PE vs Market: TXRH is poor value based on its PE Ratio (86.3x) compared to the US market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: TXRH is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: TXRH is overvalued based on its PB Ratio (6.9x) compared to the US Hospitality industry average (4.1x).


Future Growth

How is Texas Roadhouse forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXRH's forecast earnings growth (15.7% per year) is above the savings rate (2%).

Earnings vs Market: TXRH's earnings (15.7% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: TXRH's earnings are forecast to grow, but not significantly.

Revenue vs Market: TXRH's revenue (9.2% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: TXRH's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TXRH's Return on Equity is forecast to be high in 3 years time (24%)


Past Performance

How has Texas Roadhouse performed over the past 5 years?

-5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TXRH has high quality earnings.

Growing Profit Margin: TXRH's current net profit margins (3.1%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: TXRH's earnings have declined by 5% per year over the past 5 years.

Accelerating Growth: TXRH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TXRH had negative earnings growth (-43.5%) over the past year, making it difficult to compare to the Hospitality industry average (-20.5%).


Return on Equity

High ROE: TXRH's Return on Equity (8.3%) is considered low.


Financial Health

How is Texas Roadhouse's financial position?


Financial Position Analysis

Short Term Liabilities: TXRH's short term assets ($577.6M) exceed its short term liabilities ($508.2M).

Long Term Liabilities: TXRH's short term assets ($577.6M) do not cover its long term liabilities ($888.5M).


Debt to Equity History and Analysis

Debt Level: TXRH's debt to equity ratio (23.8%) is considered satisfactory.

Reducing Debt: TXRH's debt to equity ratio has increased from 7.2% to 23.8% over the past 5 years.

Debt Coverage: TXRH's debt is well covered by operating cash flow (161.1%).

Interest Coverage: TXRH's interest payments on its debt are well covered by EBIT (16.6x coverage).


Balance Sheet


Dividend

What is Texas Roadhouse current dividend yield, its reliability and sustainability?

1.62%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 16 2021Ex Dividend DateMay 18 2021Dividend Pay DateJun 04 202117 days from Ex DividendBuy in the next 1 day to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TXRH's dividend (1.62%) is higher than the bottom 25% of dividend payers in the US market (1.25%).

High Dividend: TXRH's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

Stable Dividend: TXRH's dividend payments have been volatile in the past 10 years.

Growing Dividend: TXRH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as TXRH has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: TXRH's dividends in 3 years are forecast to be well covered by earnings (45.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Jerry Morgan (59 yo)

0.17

Tenure

US$3,742,070

Compensation

Mr. Gerald L. Morgan, also known as Jerry, serves as a President at Texas Roadhouse, Inc. since January 8, 2021 and also serves as its Chief Executive Officer since March 19, 2021. He had restaurant manage...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD3.74M) is below average for companies of similar size in the US market ($USD6.51M).

Compensation vs Earnings: Insufficient data to compare Jerry's compensation with company performance.


Leadership Team

Experienced Management: TXRH's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: TXRH's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TXRH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Texas Roadhouse, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Texas Roadhouse, Inc.
  • Ticker: TXRH
  • Exchange: NasdaqGS
  • Founded: 1993
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$6.873b
  • Shares outstanding: 69.74m
  • Website: https://www.texasroadhouse.com

Number of Employees


Location

  • Texas Roadhouse, Inc.
  • 6040 Dutchmans Lane
  • Louisville
  • Kentucky
  • 40205
  • United States

Listings


Biography

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises Texas Roadhouse and Bubba's 33 restau...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/15 22:41
End of Day Share Price2021/05/14 00:00
Earnings2021/03/30
Annual Earnings2020/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.