Texas Roadhouse Inc (TXRH) Stock Analysis
Verdict: WATCH (do not buy)
Consistent top-line growth is being undermined by recent earnings misses and aggressive insider selling, suggesting a valuation ceiling.
Investment score: 58/100
Analysis as of
Is Texas Roadhouse Inc stock worth reviewing? The TradeMates thesis
TXRH maintains strong consumer demand but faces margin pressure and a multi-quarter streak of missing earnings estimates.
7-factor investment score
- Valuation: 50/100 (weight 20%)
- Financial Health: 65/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 40/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Texas Roadhouse Inc opportunities and risks
What speaks for TXRH
- Aggressive Capacity Expansion
What speaks against TXRH
- Persistent Earnings Underperformance
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| TXRH | 27.1x | 1.8x | 17.0x | 14.0% | 6.8% | 3.2% |
| YUM | 24.0x | 4.9x | 18.7x | 45.7% | 20.5% | 4.0% |
| CMG | 26.2x | 3.1x | 18.6x | 36.1% | 12.0% | 4.0% |
| QSR | 26.4x | 2.6x | 15.5x | 44.8% | 10.0% | 6.0% |
| DRI | 20.8x | 1.8x | 14.4x | 44.0% | 8.7% | 6.9% |
| ARMK | 39.4x | 0.7x | 15.0x | 6.4% | 1.8% | 4.6% |
| Peer median | 26.2x | 2.6x | 15.5x | 44.0% | 10.0% | 4.6% |
Frequently asked questions about Texas Roadhouse Inc (TXRH)
Is TXRH stock a good investment?
The TradeMates model rates Texas Roadhouse Inc as WATCH (do not buy) with an investment score of 58/100. TXRH maintains strong consumer demand but faces margin pressure and a multi-quarter streak of missing earnings estimates. This is algorithmic model output, not personal investment advice.
Is TXRH stock a buy?
The TradeMates model verdict for TXRH is WATCH (do not buy) with an investment score of 58/100. Treat this as a model signal to review, not a personal buy recommendation.