Texas Roadhouse, Inc.
Texas Roadhouse, Inc. Fundamental Analysis
Texas Roadhouse, Inc. (TXRH) shows moderate financial fundamentals with a PE ratio of 29.02, profit margin of 6.90%, and ROE of 28.20%. The company generates $5.9B in annual revenue with strong year-over-year growth of 16.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TXRH's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTXRH demonstrates superior asset utilization.
Valuation Score
ModerateTXRH shows balanced valuation metrics.
Growth Score
ExcellentTXRH delivers strong and consistent growth momentum.
Financial Health Score
WeakTXRH carries high financial risk with limited liquidity.
Profitability Score
ModerateTXRH maintains healthy but balanced margins.
Key Financial Metrics
Is TXRH Expensive or Cheap?
P/E Ratio
TXRH trades at 29.02 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TXRH's PEG of -4.14 indicates potential undervaluation.
Price to Book
The market values Texas Roadhouse, Inc. at 8.06 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.61 times EBITDA. This signals the market has high growth expectations.
How Well Does TXRH Make Money?
Net Profit Margin
For every $100 in sales, Texas Roadhouse, Inc. keeps $6.90 as profit after all expenses.
Operating Margin
Core operations generate 8.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.20 in profit for every $100 of shareholder equity.
ROA
Texas Roadhouse, Inc. generates $11.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Texas Roadhouse, Inc. produces operating cash flow of $734.18M, showing steady but balanced cash generation.
Free Cash Flow
Texas Roadhouse, Inc. generates strong free cash flow of $734.18M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.05 in free cash annually.
FCF Yield
TXRH converts 6.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How TXRH Stacks Against Its Sector Peers
| Metric | TXRH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.02 | 24.85 | Worse (Expensive) |
| ROE | 28.20% | 1165.00% | Weak |
| Net Margin | 6.90% | 752.00% | Weak |
| Debt/Equity | 1.29 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.15 | 9.23 | Weak Liquidity |
| ROA | 11.43% | 1280.00% | Weak |
TXRH outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Texas Roadhouse, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
105.93%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
162.53%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
112.68%
Industry Style: Cyclical, Growth, Discretionary
High Growth