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Texas RoadhouseFRA:ROW +0.09%89 Return-on-Tangible-Asset is 15.17% as of Mar. 2026, which is 30% above its 10-year median of 11.67. GuruFocus rates FRA:ROW with a GF Score™ of 89/100 and a GF Value™ of €170.03. The stock has 3 warning signs investors should review. Among 362 Restaurants companies, Texas Roadhouse ranks better than 90.33% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Texas Roadhouse's annualizedNet Income for the quarter that ended in Mar. 2026 was €427 Mil. Texas Roadhouse's average total tangible assets for the quarter that ended in Mar. 2026 was €2,815 Mil. Therefore, Texas Roadhouse's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 15.17%.
The historical rank and industry rank for Texas Roadhouse's Return-on-Tangible-Asset or its related term are showing as below:
FRA:ROW'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.54 Med: 11.67 Max: 15.43
Current: 13.36
During the past 13 years, Texas Roadhouse's highest Return-on-Tangible-Asset was 15.43%. The lowest was 1.54%. And the median was 11.67%.
FRA:ROW's Return-on-Tangible-Asset is ranked better than 90.33% of 362
companies
in the Restaurants industry
Industry Median: 2.36
vs FRA:ROW: 13.36
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Texas Roadhouse Return-on-Tangible-Asset Related Terms
Texas Roadhouse Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Texas Roadhouse's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:ROW vs YUMC, DPZ, BROS: Return-on-Tangible-Asset Comparison
For the Restaurants subindustry, Texas Roadhouse's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Texas Roadhouse Return-on-Tangible-Asset vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Texas Roadhouse's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Texas Roadhouse's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 15.17% mean?
Texas Roadhouse (FRA:ROW) has a Return-on-Tangible-Asset of 15.17% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Texas Roadhouse and its competitors. This is 30% above median its historical median of 11.67. Over the past decade, Texas Roadhouse's Return-on-Tangible-Asset has ranged from 1.54 to 15.43. According to the industry distribution chart, Texas Roadhouse ranks #35 out of 362 companies in the Restaurants industry, placing it in the top 9.7%.
Is Texas Roadhouse's Return-on-Tangible-Asset too high?
Texas Roadhouse's current Return-on-Tangible-Asset of 15.17% is 30% above median its 10-year median of 11.67. Over the past 10 years, this metric has ranged from a low of 1.54 to a high of 15.43. The Restaurants industry median Return-on-Tangible-Asset is 2.36. Texas Roadhouse's value of 15.17% is 542.8% above this industry median. Based on the distribution chart, Texas Roadhouse ranks #35 out of 362 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Texas Roadhouse has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Texas Roadhouse's Return-on-Tangible-Asset compare to YUMC and DPZ?
According to the Restaurants industry distribution chart, Texas Roadhouse ranks #35 out of 362 companies for Return-on-Tangible-Asset. This places Texas Roadhouse in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.36. Texas Roadhouse's value of 15.17% is 542.8% above this benchmark. Historically, Texas Roadhouse's own Return-on-Tangible-Asset has ranged from 1.54 to 15.43 over the past decade. While the company's 10-year median is 11.67 vs. the industry median of 2.36, Texas Roadhouse has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Restaurants company?
The median Return-on-Tangible-Asset among Restaurants companies is 2.36, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Roadhouse's current Return-on-Tangible-Asset of 15.17% is 542.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Texas Roadhouse and its competitors. For the Restaurants industry, the median Return-on-Tangible-Asset is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Roadhouse's current Return-on-Tangible-Asset is 15.17%, which is 30% above median its own 10-year median of 11.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Roadhouse stock overvalued right now?
Texas Roadhouse (FRA:ROW) has a current Return-on-Tangible-Asset of 15.17%. The stock's GF Value™ is €170.03, compared to a current price of €166.40 — trading 2.1% below its estimated fair value. The current Return-on-Tangible-Asset is 15.17%, which is 30% above median its 10-year median of 11.67 and 542.8% above the Restaurants industry median of 2.36. Texas Roadhouse's overall GF Score™ is 89/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Texas Roadhouse (FRA:ROW), the current Return-on-Tangible-Asset is 15.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Texas Roadhouse (FRA:ROW) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Roadhouse stock appears to be undervalued.
The current stock price of €166.40 is trading 2.1% below its estimated GF Value™ of €170.03.
Key valuation signals for FRA:ROW:
Return-on-Tangible-Asset: 15.17% (30% above median its 10-year median of 11.67)
GF Value™: €170.03 vs. price of €166.40 (2.1% below fair value)
Industry Position: 542.8% above the Restaurants median (#35 of 362)
No single metric tells the full story. See the FRA:ROW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Texas Roadhouse Inc is a restaurant company operating predominantly in the casual dining segment. The company manages its restaurant and franchising operations by concept and, as a result, has identified Texas Roadhouse, Bubba's 33, Jaggers, and retail initiatives as separate operating segments. In addition, it has identified Texas Roadhouse and Bubba's 33 as reportable segments. Maximum revenue for the company is generated from the Texas Roadhouse segment, which is a moderately priced, full-service, casual dining restaurant concept offering steaks, a selection of ribs, seafood, chicken, pork chops, pulled pork, vegetable plates, and an assortment of hamburgers, salads, and sandwiches. Geographically, the majority of the firm's restaurants are in the USA, with a few in foreign countries.
89GF Score
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