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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Texas Roadhouse, Inc. (NASDAQ:TXRH), it is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Texas Roadhouse here.
Excellent balance sheet with proven track record
Over the past year, TXRH has grown its earnings by 20%, with its most recent figure exceeding its annual average over the past five years. Not only did TXRH outperformed its past performance, its growth also exceeded the Hospitality industry expansion, which generated a 11% earnings growth. This is an notable feat for the company. Investors should not worry about TXRH’s debt levels because the company has a very miniscule amount on its books. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Texas Roadhouse, I've put together three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TXRH’s future growth? Take a look at our free research report of analyst consensus for TXRH’s outlook.
- Valuation: What is TXRH worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TXRH is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TXRH? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.