Texas Roadhouse, Inc. (TXRH) stock analysis

P/E above its 5-year median

Texas Roadhouse's P/E of 29.6 is above its own 5-year median of 27.0.

P/E above the industry

Texas Roadhouse's P/E of 29.6 is above the Eating and Drinking Places median of 28.5.

EV/EBITDA above its 5-year median

Texas Roadhouse's EV/EBITDA of 17.1 is above its 5-year median of 15.8.

P/B above the industry

Texas Roadhouse's price-to-book of 7.78 is above the Eating and Drinking Places median of 3.13.

Trading above fair value

The share price of $188.36 is above our fair value estimate of $151.27.

Margin of safety under 20%

The price is 24.5% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 13.5% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 15.4% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 9.2% over the last twelve months; the Eating and Drinking Places median is 5.9%.

Guidance lowered

Texas Roadhouse lowered its 2026 Wage and other labor inflation outlook on Aug 6, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 29.8%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

Low debt

Debt is 3.1% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 25.9% five years ago to 3.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 1613% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.38 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.17; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Texas Roadhouse paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Texas Roadhouse yields 1.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Covered by free cash flow

Dividends take 47.9% of free cash flow.