Texas Roadhouse, Inc. (TXRH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Texas Roadhouse, Inc.

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Why is Texas Roadhouse, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 24.51%

Healthy long term growth as Net Sales has grown by an annual rate of 19.64%
Company has a low Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 5 consecutive quarters

DIVIDEND PER SHARE(HY) Highest at USD 0
DIVIDEND PAYOUT RATIO(Y) Highest at 53.12%

With ROE of 28.38%, it has a very expensive valuation with a 7.73 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.27%, its profits have fallen by -6.9%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 2.27% in the last 1 year, much lower than market (S&P 500) returns of 14.90%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Texas Roadhouse, Inc. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Texas Roadhouse, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Texas Roadhouse, Inc.

2.27%

0.02

28.96%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.64%

EBIT Growth (5y)

61.17%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

3.90

Tax Ratio

15.50%

Dividend Payout Ratio

44.59%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

36.04%

ROE (avg)

24.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.73

EV to EBIT

22.19

EV to EBITDA

15.73

EV to Capital Employed

8.41

EV to Sales

1.90

PEG Ratio

Dividend Yield

2.05%

ROCE (Latest)

37.90%

ROE (Latest)

28.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 0

DIVIDEND PAYOUT RATIO(Y)

Highest at 53.12%

-6What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 25.9% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

OPERATING PROFIT MARGIN(Q)

Lowest at 10.73 %

PRE-TAX PROFIT(Q)

At USD 98.04 MM has Fallen at -25.14%

NET PROFIT(Q)

At USD 84.7 MM has Fallen at -22.49%

Here's what is working for Texas Roadhouse, Inc.

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 53.12%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 54.47 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Texas Roadhouse, Inc.

Operating Profit Margin

Lowest at 10.73 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At USD 98.04 MM has Fallen at -25.14%

over average net sales of the previous four periods of USD 130.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 84.7 MM has Fallen at -22.49%

over average net sales of the previous four periods of USD 109.27 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 25.9% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales