NasdaqGS:TXRH

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 58.31% per year

Risk Analysis

No risks detected for TXRH from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.1%

TXRH

0.4%

US Hospitality

2.5%

US Market


1 Year Return

4.9%

TXRH

-28.4%

US Hospitality

15.9%

US Market

Return vs Industry: TXRH exceeded the US Hospitality industry which returned -28.3% over the past year.

Return vs Market: TXRH underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

TXRHIndustryMarket
7 Day9.1%0.4%2.5%
30 Day14.1%-0.04%5.8%
90 Day29.3%15.8%18.2%
1 Year6.9%4.9%-26.9%-28.4%18.4%15.9%
3 Year24.0%17.5%-22.2%-27.5%39.9%30.9%
5 Year63.2%49.3%-6.6%-16.6%72.9%54.2%

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?

28.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TXRH ($57.34) is trading above our estimate of fair value ($35.6)

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 (28.6x) compared to the US Hospitality industry average (26.9x).

PE vs Market: TXRH is poor value based on its PE Ratio (28.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TXRH is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: TXRH is overvalued based on its PB Ratio (4.4x) compared to the US Hospitality industry average (1.6x).


Next Steps

Future Growth

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

58.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXRH's forecast earnings growth (58.3% per year) is above the savings rate (2.2%).

Earnings vs Market: TXRH's earnings (58.3% per year) are forecast to grow faster than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TXRH's revenue (10.4% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: TXRH's revenue (10.4% 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 low in 3 years time (11.5%).


Next Steps

  • Explore growth companies in the Consumer Services industry.

Past Performance

How has Texas Roadhouse performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TXRH has high quality earnings.

Growing Profit Margin: TXRH's current net profit margins (5.2%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: TXRH's earnings have grown by 12.5% 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 (-9.1%) over the past year, making it difficult to compare to the Hospitality industry average (-41.9%).


Return on Equity

High ROE: TXRH's Return on Equity (16.1%) is considered low.


Next Steps

Financial Health

How is Texas Roadhouse's financial position?


Financial Position Analysis

Short Term Liabilities: TXRH's short term assets ($302.6M) do not cover its short term liabilities ($310.9M).

Long Term Liabilities: TXRH's short term assets ($302.6M) do not cover its long term liabilities ($833.1M).


Debt to Equity History and Analysis

Debt Level: TXRH's debt to equity ratio (20.9%) is considered satisfactory.

Reducing Debt: TXRH's debt to equity ratio has increased from 8.1% to 20.9% over the past 5 years.

Debt Coverage: TXRH's debt is well covered by operating cash flow (149.8%).

Interest Coverage: TXRH earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.21%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TXRH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TXRH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TXRH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TXRH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TXRH is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TXRH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Wayne Taylor (64 yo)

9yrs

Tenure

US$4,899,742

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 24, 2019. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Wayne's total compensation ($USD4.90M) is about average for companies of similar size in the US market ($USD5.78M).

Compensation vs Earnings: Wayne's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Wayne Taylor
Founder9yrsUS$4.90m5.62%
$ 219.0m
Tonya Robinson
Chief Financial Officer2.25yrsUS$1.79m0.021%
$ 818.3k
Douglas Thompson
Chief Operating Officer5.58yrsUS$3.69m0.096%
$ 3.7m
S. Jacobsen
Chief Marketing Officer4.5yrsUS$1.32m0.040%
$ 1.6m
Christopher Colson
Corporate Secretaryno datano datano data

5.0yrs

Average Tenure

55yo

Average Age

Experienced Management: TXRH's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wayne Taylor
Founder9yrsUS$4.90m5.62%
$ 219.0m
James Zarley
Independent Director16.58yrsUS$353.08k0.23%
$ 9.0m
Gregory Moore
Lead Independent Directorno dataUS$459.92k0.11%
$ 4.3m
Curtis Warfield
Independent Director2yrsUS$336.06k0.0090%
$ 352.1k
Kathleen Widmer
Independent Director7.17yrsUS$314.78k0.024%
$ 946.8k
Michael Crawford
Director0.17yrno datano data

7.2yrs

Average Tenure

61yo

Average Age

Experienced Board: TXRH's board of directors are considered experienced (7.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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$3.895b
  • Shares outstanding: 69.31m
  • 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 Analysis2020/08/04 00:54
End of Day Share Price2020/08/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.