WENDY'S CO/THE (WEN)
US95058W1009 - Common Stock
Overall WEN gets a fundamental rating of 5 out of 10. We evaluated WEN against 134 industry peers in the Hotels, Restaurants & Leisure industry. WEN has an average financial health and profitability rating. WEN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WEN was profitable.
WEN had a positive operating cash flow in the past year.
In the past 5 years WEN has always been profitable.
Each year in the past 5 years WEN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WEN (3.98%) is comparable to the rest of the industry.
WEN has a better Return On Equity (70.36%) than 96.24% of its industry peers.
WEN's Return On Invested Capital of 5.87% is in line compared to the rest of the industry. WEN outperforms 54.14% of its industry peers.
WEN had an Average Return On Invested Capital over the past 3 years of 5.24%. This is below the industry average of 10.05%.
The 3 year average ROIC (5.24%) for WEN is below the current ROIC(5.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 70.36% | ||
| ROIC | 5.87% |
ROA(3y)3.7%
ROA(5y)3.24%
ROE(3y)50%
ROE(5y)39.59%
ROIC(3y)5.24%
ROIC(5y)4.91%
1.3 Margins
The Profit Margin of WEN (9.45%) is better than 69.17% of its industry peers.
In the last couple of years the Profit Margin of WEN has declined.
Looking at the Operating Margin, with a value of 17.51%, WEN is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
WEN's Operating Margin has improved in the last couple of years.
WEN's Gross Margin of 61.12% is fine compared to the rest of the industry. WEN outperforms 67.67% of its industry peers.
WEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.51% | ||
| PM (TTM) | 9.45% | ||
| GM | 61.12% |
OM growth 3Y1.91%
OM growth 5Y1.57%
PM growth 3Y11.31%
PM growth 5Y-20.19%
GM growth 3Y-0.3%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WEN is destroying value.
WEN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WEN has less shares outstanding
The debt/assets ratio for WEN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that WEN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.31, WEN is in line with its industry, outperforming 42.11% of the companies in the same industry.
WEN has a debt to FCF ratio of 11.05. This is a negative value and a sign of low solvency as WEN would need 11.05 years to pay back of all of its debts.
WEN's Debt to FCF ratio of 11.05 is in line compared to the rest of the industry. WEN outperforms 56.39% of its industry peers.
A Debt/Equity ratio of 11.21 is on the high side and indicates that WEN has dependencies on debt financing.
WEN's Debt to Equity ratio of 11.21 is on the low side compared to the rest of the industry. WEN is outperformed by 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.21 | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.79
WACC7.42%
2.3 Liquidity
A Current Ratio of 2.04 indicates that WEN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.04, WEN belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
A Quick Ratio of 2.02 indicates that WEN has no problem at all paying its short term obligations.
WEN has a better Quick ratio (2.02) than 87.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
WEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.79%, which is quite good.
WEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.83% yearly.
WEN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.43%.
The Revenue has been growing slightly by 6.53% on average over the past years.
EPS 1Y (TTM)8.79%
EPS 3Y19.39%
EPS 5Y10.83%
EPS Q2Q%9.52%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y7.96%
Revenue growth 5Y6.53%
Sales Q2Q%1.12%
3.2 Future
The Earnings Per Share is expected to grow by 11.09% on average over the next years. This is quite good.
Based on estimates for the next years, WEN will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
EPS Next Y4.17%
EPS Next 2Y6.81%
EPS Next 3Y9.38%
EPS Next 5Y11.09%
Revenue Next Year2.81%
Revenue Next 2Y3.53%
Revenue Next 3Y3.79%
Revenue Next 5Y4.2%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.63, the valuation of WEN can be described as rather expensive.
Based on the Price/Earnings ratio, WEN is valued a bit cheaper than 69.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of WEN to the average of the S&P500 Index (28.05), we can say WEN is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.77, which indicates a correct valuation of WEN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WEN indicates a somewhat cheap valuation: WEN is cheaper than 64.66% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WEN to the average of the S&P500 Index (20.07), we can say WEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
WEN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 84.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.84 | ||
| EV/EBITDA | 11.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)4.22
PEG (5Y)1.63
EPS Next 2Y6.81%
EPS Next 3Y9.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.83%, WEN is a good candidate for dividend investing.
WEN's Dividend Yield is rather good when compared to the industry average which is at 2.91. WEN pays more dividend than 96.99% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
5.2 History
On average, the dividend of WEN grows each year by 20.25%, which is quite nice.
WEN has been paying a dividend for at least 10 years, so it has a reliable track record.
WEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.25%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
100.44% of the earnings are spent on dividend by WEN. This is not a sustainable payout ratio.
The dividend of WEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP100.44%
EPS Next 2Y6.81%
EPS Next 3Y9.38%
WENDY'S CO/THE
NASDAQ:WEN (5/31/2024, 7:13:41 PM)
After market: 17.49 +0.04 (+0.23%)17.45
+0.29 (+1.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 15.77 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.22
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 70.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.51% | ||
| PM (TTM) | 9.45% | ||
| GM | 61.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.79%
EPS 3Y19.39%
EPS 5Y
EPS Q2Q%
EPS Next Y4.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.43%
Revenue growth 3Y7.96%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y