WENDY'S CO/THE (WEN) Stock Fundamental Analysis
USA - NASDAQ:WEN - US95058W1009 - Common Stock
9.67 USD
+0.01 (+0.1%)
9.72 USD
+0.05 (+0.52%)
Taking everything into account, WEN scores 5 out of 10 in our fundamental rating. WEN was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. WEN has an excellent profitability rating, but there are 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.
With an excellent Return On Equity value of 170.14%, WEN belongs to the best of the industry, outperforming 99.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.16%, WEN is in line with its industry, outperforming 55.64% of the companies in the same industry.
WEN had an Average Return On Invested Capital over the past 3 years of 5.43%. This is significantly below the industry average of 15.68%.
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
Looking at the Profit Margin, with a value of 8.63%, WEN is in the better half of the industry, outperforming 69.17% of the companies in the same industry.
In the last couple of years the Profit Margin of WEN has grown nicely.
WEN has a better Operating Margin (17.15%) than 74.44% of its industry peers.
In the last couple of years the Operating Margin of WEN has remained more or less at the same level.
With a decent Gross Margin value of 63.17%, WEN is doing good in the industry, outperforming 75.94% of the companies in the same industry.
WEN's Gross Margin has been stable in the last couple of years.
| 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
WEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WEN has been reduced compared to 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
Based on the Altman-Z score of 1.11, we must say that WEN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.11, WEN is not doing good in the industry: 66.17% of the companies in the same industry are doing better.
The Debt to FCF ratio of WEN is 13.03, which is on the high side as it means it would take WEN, 13.03 years of fcf income to pay off all of its debts.
WEN's Debt to FCF ratio of 13.03 is in line compared to the rest of the industry. WEN outperforms 52.63% of its industry peers.
WEN has a Debt/Equity ratio of 28.74. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 28.74, WEN is doing worse than 69.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.74 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.11 |
ROIC/WACC0.83
WACC7.44%
2.3 Liquidity
WEN has a Current Ratio of 1.45. This is a normal value and indicates that WEN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WEN (1.45) is better than 71.43% of its industry peers.
WEN has a Quick Ratio of 1.43. This is a normal value and indicates that WEN is financially healthy and should not expect problems in meeting its short term obligations.
WEN has a Quick ratio of 1.43. This is in the better half of the industry: WEN outperforms 74.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.02% over the past year.
Measured over the past years, WEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.13% on average per year.
The Revenue has been growing slightly by 1.31% 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)1.02%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%7.41%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-1.72%
3.2 Future
The Earnings Per Share is expected to grow by 7.17% on average over the next years.
WEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.19% yearly.
EPS Next Y-12.36%
EPS Next 2Y-2.32%
EPS Next 3Y1.81%
EPS Next 5Y7.17%
Revenue Next Year-3.73%
Revenue Next 2Y-0.31%
Revenue Next 3Y0.5%
Revenue Next 5Y2.19%
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
WEN is valuated reasonably with a Price/Earnings ratio of 9.77.
Based on the Price/Earnings ratio, WEN is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
WEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
With a Price/Forward Earnings ratio of 10.14, the valuation of WEN can be described as very reasonable.
89.47% of the companies in the same industry are more expensive than WEN, based on the Price/Forward Earnings ratio.
WEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than 74.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WEN is valued cheaply inside the industry as 96.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.17 | ||
| EV/EBITDA | 9.07 |
4.3 Compensation for Growth
The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.88
EPS Next 2Y-2.32%
EPS Next 3Y1.81%
5. Dividend
5.1 Amount
WEN has a Yearly Dividend Yield of 5.51%, which is a nice return.
WEN's Dividend Yield is rather good when compared to the industry average which is at 3.93. WEN pays more dividend than 94.74% 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 | 5.51% |
5.2 History
On average, the dividend of WEN grows each year by 32.37%, 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)32.37%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
92.71% 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.
DP92.71%
EPS Next 2Y-2.32%
EPS Next 3Y1.81%
9.67
+0.01 (+0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.75%
Inst Owner Change2.3%
Ins Owners8.78%
Ins Owner Change0.53%
Market Cap1.84B
Analysts65.45
Price Target11.65 (20.48%)
Short Float %10.76%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
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)-12.62%
PT rev (3m)-21%
EPS NQ rev (1m)-3.41%
EPS NQ rev (3m)-20.81%
EPS NY rev (1m)-8.8%
EPS NY rev (3m)-9.13%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-4%
Revenue NY rev (1m)-2.07%
Revenue NY rev (3m)-2.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.77 | ||
| Fwd PE | 10.14 | ||
| P/S | 0.83 | ||
| P/FCF | 7.17 | ||
| P/OCF | 5.18 | ||
| P/B | 16.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.07 |
EPS(TTM)0.99
EY10.24%
EPS(NY)0.95
Fwd EY9.87%
FCF(TTM)1.35
FCFY13.94%
OCF(TTM)1.87
OCFY19.31%
SpS11.68
BVpS0.59
TBVpS-9.63
PEG (NY)N/A
PEG (5Y)0.88
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%
ROICexcg growth 3Y6.48%
ROICexcg 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 | 1.11 |
F-Score6
WACC7.44%
ROIC/WACC0.83
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)1.02%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%7.41%
EPS Next Y-12.36%
EPS Next 2Y-2.32%
EPS Next 3Y1.81%
EPS Next 5Y7.17%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-1.72%
Revenue Next Year-3.73%
Revenue Next 2Y-0.31%
Revenue Next 3Y0.5%
Revenue Next 5Y2.19%
EBIT growth 1Y2.22%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year42.36%
EBIT Next 3Y15.24%
EBIT Next 5Y10.94%
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%