Texas Roadhouse (TXRH)
Consumer · NASDAQ · US
Fundamentals
Valuation and ratings
Texas Roadhouse trades at $197.55, which is 25% above the $147.34 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 52 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 30.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Texas Roadhouse
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It operates through Texas Roadhouse, Bubba's 33, and Others segments. The company's restaurants offer seasoned and aged steaks, ribs, seafood, chicken, pork chops, pulled pork, and vegetable plates, as well as an assortment of hamburgers, salads, and sandwiches; and pizza, wings, and various appetizers and dinner entrées. The company also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers brands. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.
TXRH passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
10 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$592.62M · 0.3% of book
- D. E. Shaw, D. E. Shaw & Co., Inc.$161.57M · 0.1% of book
- Robert Pitts, STEADFAST CAPITAL MANAGEMENT LP$150.13M · 5.1% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$63.97M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$57.33M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Texas Roadhouse (TXRH) undervalued?
Against our discounted cash flow estimate of $147.34, TXRH at $197.55 is 25% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own TXRH?
10 of the institutions we track reported a position in TXRH in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is TXRH's P/E ratio?
TXRH trades at 30.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.