WENDY'S CO/THE (WEN) Stock Fundamental Analysis
USA - NASDAQ:WEN - US95058W1009 - Common Stock
8.97 USD
+0.14 (+1.59%)
8.98 USD
+0.01 (+0.11%)
We assign a fundamental rating of 5 out of 10 to WEN. WEN was compared to 132 industry peers in the Hotels, Restaurants & Leisure industry. While WEN belongs to the best of the industry regarding profitability, there are concerns on its financial health. WEN has a bad growth rate and is valued cheaply.
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.
In the past 5 years WEN has always been profitable.
In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
WEN has a Return On Assets (3.92%) which is comparable to the rest of the industry.
The Return On Equity of WEN (170.14%) is better than 98.48% of its industry peers.
The Return On Invested Capital of WEN (6.16%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for WEN is significantly below the industry average of 10.78%.
The last Return On Invested Capital (6.16%) for WEN is above the 3 year average (5.43%), which is a sign of increasing profitability.
| 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
The Profit Margin of WEN (8.63%) is better than 69.70% of its industry peers.
In the last couple of years the Profit Margin of WEN has grown nicely.
WEN's Operating Margin of 17.15% is fine compared to the rest of the industry. WEN outperforms 74.24% of its industry peers.
In the last couple of years the Operating Margin of WEN has remained more or less at the same level.
WEN has a better Gross Margin (63.17%) than 77.27% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WEN is destroying 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
Based on the Altman-Z score of 1.09, 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 1.09, WEN is doing worse than 63.64% of the companies in the same industry.
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 52.27% of 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's Debt to Equity ratio of 28.74 is on the low side compared to the rest of the industry. WEN is outperformed by 68.94% 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.
WEN's Current ratio of 1.45 is fine compared to the rest of the industry. WEN outperforms 70.45% 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'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
The Earnings Per Share has been growing slightly by 1.02% over the past year.
WEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.13% yearly.
WEN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.31%.
WEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.62% yearly.
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.
Based on estimates for the next years, WEN will show a small growth in Revenue. The Revenue will grow by 2.19% on average per year.
EPS Next Y-13.4%
EPS Next 2Y-2.99%
EPS Next 3Y1.56%
EPS Next 5Y7.17%
Revenue Next Year-3.99%
Revenue Next 2Y-0.49%
Revenue Next 3Y0.49%
Revenue Next 5Y2.19%
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.
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 9.06, 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 25.83. WEN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.53 indicates a reasonable valuation of WEN.
WEN's Price/Forward Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 87.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. WEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 9.53 |
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.
95.45% of the companies in the same industry are more expensive than WEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.65 | ||
| EV/EBITDA | 8.77 |
4.3 Compensation for Growth
The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-2.99%
EPS Next 3Y1.56%
5. Dividend
5.1 Amount
WEN has a Yearly Dividend Yield of 6.56%, which is a nice return.
WEN's Dividend Yield is rather good when compared to the industry average which is at 4.33. WEN pays more dividend than 96.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 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
92.71% of the earnings are spent on dividend by WEN. This is not a sustainable payout ratio.
WEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP92.71%
EPS Next 2Y-2.99%
EPS Next 3Y1.56%
8.97
+0.14 (+1.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners98.47%
Inst Owner Change-2.02%
Ins Owners8.86%
Ins Owner Change0.55%
Market Cap1.71B
Revenue(TTM)2.23B
Net Income(TTM)192.06M
Analysts56.76
Price Target11.01 (22.74%)
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)-5.51%
PT rev (3m)-22.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.79%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-9.88%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-4.23%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 9.53 | ||
| P/S | 0.77 | ||
| P/FCF | 6.65 | ||
| P/OCF | 4.8 | ||
| P/B | 15.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.77 |
EPS(TTM)0.99
EY11.04%
EPS(NY)0.94
Fwd EY10.49%
FCF(TTM)1.35
FCFY15.03%
OCF(TTM)1.87
OCFY20.82%
SpS11.68
BVpS0.59
TBVpS-9.63
PEG (NY)N/A
PEG (5Y)0.81
Graham Number3.63
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)1.02%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%7.41%
EPS Next Y-13.4%
EPS Next 2Y-2.99%
EPS Next 3Y1.56%
EPS Next 5Y7.17%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-1.72%
Revenue Next Year-3.99%
Revenue Next 2Y-0.49%
Revenue Next 3Y0.49%
Revenue Next 5Y2.19%
EBIT growth 1Y2.22%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year37.36%
EBIT Next 3Y13.87%
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%
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 9.06 and the Price/Book (PB) ratio is 15.14.
Can you provide the financial health for WEN stock?
The financial health rating of WENDY'S CO/THE (WEN) is 3 / 10.