WENDY'S CO/THE (WEN) Stock Fundamental Analysis
USA - NASDAQ:WEN - US95058W1009 - Common Stock
8.62 USD
-0.09 (-1.03%)
8.65 USD
+0.03 (+0.35%)
Overall WEN gets a fundamental rating of 5 out of 10. We evaluated WEN against 132 industry peers in the Hotels, Restaurants & Leisure industry. While WEN has a great profitability rating, there are quite some concerns on its financial health. WEN is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
WEN had positive earnings in the past year.
WEN had a positive operating cash flow in the past year.
Each year in the past 5 years WEN has been profitable.
WEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WEN (3.92%) is comparable to the rest of the industry.
WEN has a Return On Equity of 170.14%. This is amongst the best in the industry. WEN outperforms 97.73% of its industry peers.
With a Return On Invested Capital value of 6.16%, WEN perfoms like the industry average, outperforming 56.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WEN is significantly below the industry average of 10.74%.
The 3 year average ROIC (5.43%) for WEN is below the current ROIC(6.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 170.14% | ||
| ROIC | 6.16% |
ROA(3y)3.68%
ROA(5y)3.46%
ROE(3y)59.67%
ROE(5y)49.27%
ROIC(3y)5.43%
ROIC(5y)5.17%
1.3 Margins
WEN has a Profit Margin of 8.63%. This is in the better half of the industry: WEN outperforms 68.94% of its industry peers.
WEN's Profit Margin has improved in the last couple of years.
WEN has a better Operating Margin (17.15%) than 74.24% of its industry peers.
WEN's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 63.17%, WEN is doing good in the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Gross Margin of WEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.15% | ||
| PM (TTM) | 8.63% | ||
| GM | 63.17% |
OM growth 3Y-1.47%
OM growth 5Y0.74%
PM growth 3Y-6.44%
PM growth 5Y1.55%
GM growth 3Y-1.04%
GM growth 5Y0.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WEN is destroying value.
WEN has less shares outstanding than it did 1 year ago.
WEN has less shares outstanding than it did 5 years ago.
WEN has a worse debt/assets ratio than last year.
2.2 Solvency
WEN has an Altman-Z score of 1.09. This is a bad value and indicates that WEN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.09, WEN is not doing good in the industry: 62.88% of the companies in the same industry are doing better.
WEN has a debt to FCF ratio of 13.03. This is a negative value and a sign of low solvency as WEN would need 13.03 years to pay back of all of its debts.
WEN has a Debt to FCF ratio (13.03) which is in line with its industry peers.
A Debt/Equity ratio of 28.74 is on the high side and indicates that WEN has dependencies on debt financing.
WEN has a worse Debt to Equity ratio (28.74) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.74 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.94
WACC6.52%
2.3 Liquidity
A Current Ratio of 1.45 indicates that WEN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.45, WEN is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
A Quick Ratio of 1.43 indicates that WEN should not have too much problems paying its short term obligations.
WEN's Quick ratio of 1.43 is fine compared to the rest of the industry. WEN outperforms 73.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
WEN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.08%.
WEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.13% yearly.
The Revenue has decreased by -0.21% in the past year.
Measured over the past years, WEN shows a small growth in Revenue. The Revenue has been growing by 5.62% on average per year.
EPS 1Y (TTM)2.08%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%-4%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
3.2 Future
WEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.02% yearly.
WEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.17% yearly.
EPS Next Y-13.58%
EPS Next 2Y-3.3%
EPS Next 3Y1.43%
EPS Next 5Y7.02%
Revenue Next Year-4.04%
Revenue Next 2Y-0.58%
Revenue Next 3Y0.44%
Revenue Next 5Y2.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 8.80, the valuation of WEN can be described as very reasonable.
Based on the Price/Earnings ratio, WEN is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.89. WEN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.22, the valuation of WEN can be described as very reasonable.
88.64% of the companies in the same industry are more expensive than WEN, based on the Price/Forward Earnings ratio.
WEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 71.21% of the companies in the same industry.
WEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WEN is cheaper than 96.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.39 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
WEN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y-3.3%
EPS Next 3Y1.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.56%, WEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.57, WEN pays a better dividend. On top of this WEN pays more dividend than 96.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
5.2 History
The dividend of WEN is nicely growing with an annual growth rate of 32.37%!
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)32.37%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
WEN pays out 92.71% of its income as dividend. 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.
DP92.71%
EPS Next 2Y-3.3%
EPS Next 3Y1.43%
8.62
-0.09 (-1.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners98.47%
Inst Owner Change-3.92%
Ins Owners8.86%
Ins Owner Change0.54%
Market Cap1.64B
Revenue(TTM)2.21B
Net Income(TTM)192.06M
Analysts56.76
Price Target11.01 (27.73%)
Short Float %13.45%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
Yearly Dividend1
Dividend Growth(5Y)32.37%
DP92.71%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.16%
Min EPS beat(2)-0.22%
Max EPS beat(2)12.55%
EPS beat(4)2
Avg EPS beat(4)3.16%
Min EPS beat(4)-1.97%
Max EPS beat(4)12.55%
EPS beat(8)4
Avg EPS beat(8)1.42%
EPS beat(12)8
Avg EPS beat(12)2.26%
EPS beat(16)11
Avg EPS beat(16)2.12%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)-0.56%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)0.88%
Revenue beat(8)2
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)-3.32%
PT rev (3m)-17.43%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-21.04%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-10.07%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.8 | ||
| Fwd PE | 9.22 | ||
| P/S | 0.74 | ||
| P/FCF | 6.39 | ||
| P/OCF | 4.62 | ||
| P/B | 14.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.73 |
EPS(TTM)0.98
EY11.37%
EPS(NY)0.94
Fwd EY10.85%
FCF(TTM)1.35
FCFY15.64%
OCF(TTM)1.87
OCFY21.66%
SpS11.68
BVpS0.59
TBVpS-9.63
PEG (NY)N/A
PEG (5Y)0.79
Graham Number3.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 170.14% | ||
| ROCE | 8.52% | ||
| ROIC | 6.16% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 12.26% | ||
| OM | 17.15% | ||
| PM (TTM) | 8.63% | ||
| GM | 63.17% | ||
| FCFM | 11.54% |
ROA(3y)3.68%
ROA(5y)3.46%
ROE(3y)59.67%
ROE(5y)49.27%
ROIC(3y)5.43%
ROIC(5y)5.17%
ROICexc(3y)6.13%
ROICexc(5y)5.72%
ROICexgc(3y)11.48%
ROICexgc(5y)10.67%
ROCE(3y)7.51%
ROCE(5y)7.16%
ROICexgc growth 3Y6.48%
ROICexgc growth 5Y7.52%
ROICexc growth 3Y6.19%
ROICexc growth 5Y7.2%
OM growth 3Y-1.47%
OM growth 5Y0.74%
PM growth 3Y-6.44%
PM growth 5Y1.55%
GM growth 3Y-1.04%
GM growth 5Y0.27%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.74 | ||
| Debt/FCF | 13.03 | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 62% | ||
| Cap/Sales | 4.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.75% | ||
| Profit Quality | 133.75% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.09 |
F-Score6
WACC6.52%
ROIC/WACC0.94
Cap/Depr(3y)59.99%
Cap/Depr(5y)58.81%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.05%
Profit Quality(3y)119.97%
Profit Quality(5y)135.28%
High Growth Momentum
Growth
EPS 1Y (TTM)2.08%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%-4%
EPS Next Y-13.58%
EPS Next 2Y-3.3%
EPS Next 3Y1.43%
EPS Next 5Y7.02%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
Revenue Next Year-4.04%
Revenue Next 2Y-0.58%
Revenue Next 3Y0.44%
Revenue Next 5Y2.17%
EBIT growth 1Y2.22%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year37.36%
EBIT Next 3Y13.87%
EBIT Next 5Y10.86%
FCF growth 1Y17.59%
FCF growth 3Y-0.86%
FCF growth 5Y4.01%
OCF growth 1Y17.36%
OCF growth 3Y0.91%
OCF growth 5Y4.22%
WENDY'S CO/THE / WEN FAQ
What is the fundamental rating for WEN stock?
ChartMill assigns a fundamental rating of 5 / 10 to WEN.
What is the valuation status of WENDY'S CO/THE (WEN) stock?
ChartMill assigns a valuation rating of 7 / 10 to WENDY'S CO/THE (WEN). This can be considered as Undervalued.
Can you provide the profitability details for WENDY'S CO/THE?
WENDY'S CO/THE (WEN) has a profitability rating of 7 / 10.
What is the valuation of WENDY'S CO/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WENDY'S CO/THE (WEN) is 8.8 and the Price/Book (PB) ratio is 14.55.
Can you provide the financial health for WEN stock?
The financial health rating of WENDY'S CO/THE (WEN) is 3 / 10.