Many stocks have been testing new highs in 2020, and one of the most notable is Texas Roadhouse Inc. (TXRH). Currently, TXRH is trading at $60.79 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $53.58.
To add more color to this target, the company’s high over the last year is $72.49 and the low is $25.15. Over the last 52 weeks, TXRH is down -16.14% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, TXRH reported a profit of $83.5 million. Texas Roadhouse Inc. also saw revenues increase to $652.52 million. In addition, TXRH has free cash flow of -$24.96 million as of 03-2020 The company’s EBITDA came in at $44.84 million which compares well with its peers.
TXRH booked profit margins of 5.20%, its Return on Equity (ROE) is 15.60%, and its Return on Assets is 7.20%. All told, it is clear that, TXRH needs to be on your watchlist.
About Texas Roadhouse Inc.
If readers are unfamiliar, Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises Texas Roadhouse and Bubba’s 33 restaurants. As of December 31, 2019, it operated 514 domestic restaurants and 97 franchise restaurants. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. TXRH has a short ratio of 3.11 and outstanding shares of 69.42M.
TXRH has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.52 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.99. Texas Roadhouse Inc. TXRH also noted assets of $2.05 billion at the end of the last quarter. Investors should also keep an eye on sector updates as TXRH has historically followed its peers on positive news.
All told, Texas Roadhouse Inc. TXRH has strung together solid data and demonstrated underlying fundamentals. At its current valuation, TXRH represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Texas Roadhouse Inc. TXRH is now commanding a market cap of 4.03B and a float of 64.94M. TXRH is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of TXRH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in TXRH, either long or short, and we have not been compensated for this article.