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Is this Large Market Cap Stock target price reasonable for Texas Roadhouse, Inc. (NASDAQ:TXRH)?

The company in question is, Texas Roadhouse, Inc. (NASDAQ:TXRH) currently with a stock price of 38.57 (0.94% today). The market cap for Texas Roadhouse, Inc. is 2704.89, and is in the sector Services, and Restaurants industry. The target price for Texas Roadhouse, Inc. is 44.94. Currently Texas Roadhouse, Inc. is trading with a P/E of 24.03, and a forward P/E of 18.86. Average volume for Texas Roadhouse, Inc. is 1017.31 and so far today it is 439299.

Performance in the last year for Texas Roadhouse, Inc. has been 8.10%. For EPS growth, Texas Roadhouse, Inc. has seen a growth of 11.10%, and is looking to grow in the next year to 13.76%. More long term stats show that EPS growth has been 11.40% over the last five years and could be 19.19% for the next five years. Texas Roadhouse, Inc. has seen sales growth quarter over quarter at 11.90%, with EPS growth quarter over quarter at 58.50%. The 20-day simple moving average is -9.81%, with the 200-day simple moving average coming to -8.34%.

Since the IPO date for Texas Roadhouse, Inc. on the 10/05/2004, Texas Roadhouse, Inc. has seen performance year to date to be 8.23%. With Texas Roadhouse, Inc. trading at 38.57, the dividend yield is 1.99%, and the EPS is 1.59.

So could Texas Roadhouse, Inc., be undervalued? Well as said before P/E is 24.03. The PEG is 1.25, P/S is 1.41 and the P/B is at 3.75. The P/cash is 28.38, with P/free cash flow at 70.62.

Texas Roadhouse, Inc. ability to deal with debt shows that the current ratio is 0.7, and the quick ratio is 0.6. This is with long term debt/equity at 0.07, and total debt/equity at 0.07.

In terms of margins, Texas Roadhouse, Inc. has a gross margin of 65.50%, an operating margin of 8.70% and a profit margin of 5.90%.Payout ratio for Texas Roadhouse, Inc. is 44.90%. Return on assets come to 10.80% with return on investment coming to 14.60%.

Insider ownership for Texas Roadhouse, Inc., is at 6.20% and institutional ownership comes to 89.90%. Outstanding shares are at 70.79. While shares float is 65.38. The float short is currently 8.18%, and short ratio is 5.25.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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