[Case Study] How I & My Students Made Over 42.66% Return on Texas Roadhouse’s Stock

What you will learn in this post:

  • A detailed case study on how to apply our value investing strategy to find highly profitable stocks.
  • How I and my students easily made over 42.66% return on Texas Roadhouse's stock.
  • How to perform both fundamental analysis and technical analysis the right way!
  • A step-by-step valuation of Texas Roadhouse and how you can automate your valuation process.
  • And a lot more...

I know it’s hard for you to start investing as you have no idea about where and how to start.

And it can be even harder for you to invest your money if you don’t have a SYSTEM…

You may have already read dozens of investing books and taken many investing classes, but if you don’t know how to apply the knowledge, you are wasting your time.

That’s why I want to make something that’s extremely practical for you.

In this case study, I’ll teach you exactly how we value a company from beginning to the end...step by step!

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Operating Cash Flow Margin

This is a complete guide on how to calculate Operating Cash Flow Margin with detailed analysis, interpretation, and example. You will learn how to use its formula to evaluate a company’s profitability.

Definition - What is Operating Cash Flow Margin?

The operating cash flow margin is the percentage of a company’s earnings that flows down into the operating cash flow.

A high cash flow margin signifies an efficient business that doesn’t have excess expenses, while a low operating cash flow margin could be a sign of inefficiency.

Industries have varying standards for OCF margin, so when comparing the cash flow margin of multiple companies, it is best to do so within one specific industry.

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Preferred Dividend Coverage Ratio

This is a complete guide on how to calculate Preferred Dividend Coverage Ratio with detailed analysis, interpretation, and example. You will learn how to use its formula to evaluate a firm's dividend performance.

Definition - What is Preferred Dividend Coverage Ratio?

The preferred dividend coverage ratio (sometimes referred to as times preferred dividend earned) essentially tells you whether or not a company has made enough profit to pay off its preferred dividends.

So it’s a really important one for shareholders in particular but also gives you a sense of how well the company is doing.

Basically, it’s a way of measuring a company’s ability to pay or the relative burden those preferred dividends would have on the company.

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Return On Retained Earnings Ratio

This is an ultimate guide on how to calculate Return on Retained Earnings Ratio (RORE) with in-depth analysis, interpretation, and example. You will learn how to use its formula to evaluate a firm’s profitability.

Definition - What is Return on Retained Earnings Ratio?

The return on retained earnings ratio (RORE) measures how effectively a company uses its profits from the previous years.

The ratio can inform investors whether the company is better off investing its profits back into the company, or paying its shareholders a dividend.

A high ratio suggests that the company should invest heavily in itself, while a low ratio means a company may benefit from paying a larger dividend.

It is not commonly used by investors to assess the attractiveness of an investment.

It is mostly used as a measure to aid a management company in decision making regarding dividend payouts.

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