NasdaqGS:TXRH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

-1.6%

TXRH

3.4%

US Hospitality

3.4%

US Market


1 Year Return

-28.3%

TXRH

1.1%

US Hospitality

5.4%

US Market

Return vs Industry: TXRH underperformed the US Hospitality industry which returned 1.1% over the past year.

Return vs Market: TXRH underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

TXRHIndustryMarket
7 Day-1.6%3.4%3.4%
30 Day-8.9%-5.3%-1.0%
90 Day-8.9%-4.9%-0.4%
1 Year-26.8%-28.3%3.6%1.1%7.7%5.4%
3 Year36.2%29.1%42.8%33.5%46.2%36.8%
5 Year97.7%80.7%40.7%25.0%65.6%47.5%

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?

22.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TXRH ($49.44) is trading above our estimate of fair value ($35.52)

Significantly Undervalued: 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 (22.9x) compared to the Hospitality industry average (22.9x).

PE vs Market: TXRH is poor value based on its PE Ratio (22.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TXRH is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: TXRH is overvalued based on its PB Ratio (3.9x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is Texas Roadhouse forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXRH's forecast earnings growth (9.4% per year) is above the savings rate (2.7%).

Earnings vs Market: TXRH's earnings (9.4% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: TXRH's revenue (8.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: TXRH's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TXRH's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has Texas Roadhouse performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TXRH's earnings have grown by 14.3% 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 (-2.3%) over the past year, making it difficult to compare to the Hospitality industry average (-13.9%).


Return on Equity

High ROE: TXRH's Return on Equity (17.8%) is considered low.


Return on Assets

ROA vs Industry: TXRH has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: TXRH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Texas Roadhouse's financial position?


Financial Position Analysis

Short Term Liabilities: TXRH's short term assets ($217.4M) do not cover its short term liabilities ($359.1M)

Long Term Liabilities: TXRH's short term assets (217.4M) do not cover its long term liabilities (604.2M)


Debt to Equity History and Analysis

Debt Level: TXRH is debt free.

Reducing Debt: TXRH has no debt compared to 5 years ago when its debt to equity ratio was 8.9%.

Debt Coverage: TXRH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TXRH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TXRH has a high level of physical assets or inventory.

Debt Coverage by Assets: TXRH's debt is covered by short term assets (assets are 1912516913632574.233580x debt).


Next Steps

Dividend

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

2.43%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.9%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TXRH's dividend (2.43%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TXRH's dividend (2.43%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Whilst dividend payments have been stable, TXRH has been paying a dividend for less than 10 years.

Growing Dividend: TXRH's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.9%), TXRH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TXRH's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).


Next Steps

Management

What is the CEO of Texas Roadhouse's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Wayne Taylor (63yo)

8.2yrs

Tenure

US$1,363,098

Compensation

Mr. Wayne Kent Taylor founded Texas Roadhouse, Inc. in 1993 and has been its Chief Executive Officer since August 18, 2011. Mr. Taylor serves as President of Texas Roadhouse, Inc. since June 21, 2019. Mr.  ...


CEO Compensation Analysis

Compensation vs. Market: Wayne's total compensation ($USD1.36M) is below average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Wayne's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

54yo

Average Age

Experienced Management: TXRH's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

10.7yrs

Average Tenure

63yo

Average Age

Experienced Board: TXRH's board of directors are seasoned and experienced ( 10.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,277,19002 Aug 19
Gregory Moore
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares23,000
Max PriceUS$55.53
BuyUS$992,43903 May 19
James Zarley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares18,900
Max PriceUS$52.51
SellUS$182,73025 Mar 19
Kathleen Widmer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$60.91
SellUS$354,42019 Mar 19
Douglas Thompson
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares6,000
Max PriceUS$59.07

Ownership Breakdown


Management Team

  • Wayne Taylor (63yo)

    Founder

    • Tenure: 8.2yrs
    • Compensation: US$1.36m
  • Tonya Robinson (50yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: US$1.24m
  • Doug Thompson (55yo)

    Chief Operating Officer

    • Tenure: 4.8yrs
    • Compensation: US$3.22m
  • S. Jacobsen (53yo)

    Chief Marketing Officer

    • Tenure: 3.7yrs
    • Compensation: US$624.91k

Board Members

  • Jim Zarley (74yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$311.15k
  • Greg Moore (69yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$431.03k
  • Wayne Taylor (63yo)

    Founder

    • Tenure: 8.2yrs
    • Compensation: US$1.36m
  • Curtis Warfield (50yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$130.52k
  • Kathy Widmer (57yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$298.12k

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$3.440b
  • Shares outstanding: 69.57m
  • Website: https://www.texasroadhouse.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TXRHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2004
ROWDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2004

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 Analysis2019/10/15 23:50
End of Day Share Price2019/10/15 00:00
Earnings2019/06/25
Annual Earnings2018/12/25


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.