Texas Roadhouse Inc. (NASDAQ:TXRH) shares traded lower over the last trading session, losing -0.04% on 06/03/21. The shares fell to a low of $93.09 before closing at $96.19. Intraday shares traded counted 1.44 million, which was -83.07% lower than its 30-day average trading volume of 784.16K. TXRH’s previous close was $96.23 while the outstanding shares total 69.64M. The firm stock’s Relative Strength Index (RSI) is 43.55, with weekly volatility at 3.16% and ATR at 3.20. The TXRH stock’s 52-week price range has touched low of $46.84 and a $110.75 high.
Investors have identified the Restaurants company Texas Roadhouse Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $6.60 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Texas Roadhouse Inc. (TXRH) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For TXRH, the company has in raw cash 495.65 million on their books with 50.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 577.62 million total, with 508.16 million as their total liabilities.
TXRH were able to record 139.35 million as free cash flow during the 08/02/2021 quarter of the year, this saw their quarterly net cash flow reduce by 132.49 million. In cash movements, the company had a total of 178.01 million as operating cash flow.
Potential earnings growth for Texas Roadhouse Inc. (TXRH)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/02/2021 quarter of the year, Texas Roadhouse Inc. recorded a total of 800.63 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 18.5% coming in sequential stages and their sales for the 08/02/2021 quarter increasing by 20.31%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 647.35 million trying to sell their products during the last quarter, with the result yielding a gross income of 153.28 million. This allows shareholders to hold on to 69.64M with the recently reported earning now reading 0.95 cents per share. This is a figure that compared to analyst’s prediction for their 08/02/2021 (0.91 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.87 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TXRH sounds very interesting.
Is the stock of TXRH attractive?
In related news, General Counsel, Colson Christopher C. sold 259 shares of the company’s stock in a transaction that recorded on May 10. The sale was performed at an average price of 104.03, for a total value of 26,944. As the sale deal closes, the Director, ZARLEY JAMES R now sold 33,121 shares of the company’s stock, valued at 3,412,125. Also, Director, ZARLEY JAMES R sold 1,879 shares of the company’s stock in a deal that was recorded on May 05. The shares were price at an average price of 105.01 per share, with a total market value of 197,314. Following this completion of acquisition, the Chief Marketing Officer, Jacobsen S. Chris now holds 4,300 shares of the company’s stock, valued at 455,972. In the last 6 months, insiders have changed their ownership in shares of company stock by 4.70%.
7 out of 24 analysts covering the stock have rated it a Buy, while 16 have maintained a Hold recommendation on Texas Roadhouse Inc.. 1 analysts has assigned a Sell rating on the TXRH stock. The 12-month mean consensus price target for the company’s shares has been set at $111.05.