8 USD
+0.02 (+0.25%)
WEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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. Finally WEN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year WEN was profitable.
- In the past year WEN had a positive cash flow from operations.
- Each year in the past 5 years WEN has been profitable.
- In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
- WEN's Return On Assets of 3.74% is in line compared to the rest of the industry. WEN outperforms 59.85% of its industry peers.
- Looking at the Return On Equity, with a value of 170.42%, WEN belongs to the top of the industry, outperforming 99.24% of the companies in the same industry.
- WEN has a Return On Invested Capital (6.67%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for WEN is below the industry average of 10.37%.
- The last Return On Invested Capital (6.67%) for WEN is above the 3 year average (5.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 170.42% | ||
| ROIC | 6.67% |
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 better Profit Margin (8.43%) than 69.70% of its industry peers.
- WEN's Profit Margin has improved in the last couple of years.
- WEN has a better Operating Margin (17.49%) than 75.76% of its industry peers.
- WEN's Operating Margin has been stable in the last couple of years.
- The Gross Margin of WEN (62.41%) is better than 78.03% of its industry peers.
- 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 | 17.49% | ||
| PM (TTM) | 8.43% | ||
| GM | 62.41% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, WEN has less shares outstanding
- Compared to 5 years ago, WEN has less shares outstanding
- WEN has a worse debt/assets ratio than last year.
2.2 Solvency
- WEN has an Altman-Z score of 0.97. This is a bad value and indicates that WEN is not financially healthy and even has some risk of bankruptcy.
- WEN has a worse Altman-Z score (0.97) than 62.88% of its industry peers.
- WEN has a debt to FCF ratio of 14.24. This is a negative value and a sign of low solvency as WEN would need 14.24 years to pay back of all of its debts.
- WEN has a Debt to FCF ratio of 14.24. This is comparable to the rest of the industry: WEN outperforms 52.27% of its industry peers.
- WEN has a Debt/Equity ratio of 26.89. This is a high value indicating a heavy dependency on external financing.
- WEN has a worse Debt to Equity ratio (26.89) than 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.97 |
ROIC/WACC1.03
WACC6.5%
2.3 Liquidity
- WEN has a Current Ratio of 0.81. This is a bad value and indicates that WEN is not financially healthy enough and could expect problems in meeting its short term obligations.
- WEN's Current ratio of 0.81 is in line compared to the rest of the industry. WEN outperforms 43.18% of its industry peers.
- WEN has a Quick Ratio of 0.81. This is a bad value and indicates that WEN is not financially healthy enough and could expect problems in meeting its short term obligations.
- WEN has a Quick ratio of 0.80. This is comparable to the rest of the industry: WEN outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 |
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%.
- 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.
- WEN shows a decrease in Revenue. In the last year, the revenue decreased by -0.21%.
- The Revenue has been growing slightly by 5.62% on average over the past years.
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
- Based on estimates for the next years, WEN will show a small growth in Earnings Per Share. The EPS will grow by 5.27% on average per year.
- Based on estimates for the next years, WEN will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y-11.72%
EPS Next 2Y-6.34%
EPS Next 3Y-2.48%
EPS Next 5Y5.27%
Revenue Next Year-2.79%
Revenue Next 2Y0.04%
Revenue Next 3Y0.56%
Revenue Next 5Y2.15%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.16, the valuation of WEN can be described as very reasonable.
- Based on the Price/Earnings ratio, WEN is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
- WEN is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 9.12, the valuation of WEN can be described as very reasonable.
- 91.67% of the companies in the same industry are more expensive than WEN, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of WEN to the average of the S&P500 Index (25.95), we can say WEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.16 | ||
| Fwd PE | 9.12 |
4.2 Price Multiples
- WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 77.27% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, WEN is valued cheaply inside the industry as 97.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.4 | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
- The decent profitability rating of WEN may justify a higher PE ratio.
- WEN's earnings are expected to decrease with -2.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.73
EPS Next 2Y-6.34%
EPS Next 3Y-2.48%
5. Dividend
5.1 Amount
- WEN has a Yearly Dividend Yield of 6.64%, which is a nice return.
- WEN's Dividend Yield is rather good when compared to the industry average which is at 1.21. WEN pays more dividend than 97.73% of the companies in the same industry.
- WEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.64% |
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 82.75% 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.
DP82.75%
EPS Next 2Y-6.34%
EPS Next 3Y-2.48%
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 for WEN stock?
ChartMill assigns a valuation rating of 7 / 10 to WENDY'S CO/THE (WEN). This can be considered as Undervalued.
How profitable is WENDY'S CO/THE (WEN) stock?
WENDY'S CO/THE (WEN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of WENDY'S CO/THE (WEN) stock?
The Price/Earnings (PE) ratio for WENDY'S CO/THE (WEN) is 8.16 and the Price/Book (PB) ratio is 13.95.
How sustainable is the dividend of WENDY'S CO/THE (WEN) stock?
The dividend rating of WENDY'S CO/THE (WEN) is 7 / 10 and the dividend payout ratio is 82.75%.