DENNY'S CORP (DENN) Stock Fundamental Analysis
NASDAQ:DENN - Nasdaq - US24869P1049 - Common Stock - Currency: USD
Taking everything into account, DENN scores 3 out of 10 in our fundamental rating. DENN was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of DENN while its profitability can be described as average. DENN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DENN was profitable.
DENN had a positive operating cash flow in the past year.
Of the past 5 years DENN 4 years were profitable.
DENN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DENN has a Return On Assets (3.53%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 8.72%, DENN is in the better half of the industry, outperforming 70.15% of the companies in the same industry.
DENN had an Average Return On Invested Capital over the past 3 years of 11.25%. This is below the industry average of 13.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | N/A | ||
| ROIC | 8.72% |
ROA(3y)7.88%
ROA(5y)8.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.25%
ROIC(5y)9.55%
1.3 Margins
DENN has a Profit Margin (3.79%) which is in line with its industry peers.
DENN's Profit Margin has declined in the last couple of years.
DENN has a Operating Margin (10.44%) which is in line with its industry peers.
In the last couple of years the Operating Margin of DENN has declined.
With a decent Gross Margin value of 62.26%, DENN is doing good in the industry, outperforming 75.37% of the companies in the same industry.
DENN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.44% | ||
| PM (TTM) | 3.79% | ||
| GM | 62.26% |
OM growth 3Y-9.18%
OM growth 5Y-4.57%
PM growth 3Y-37.59%
PM growth 5Y-26.13%
GM growth 3Y-1.79%
GM growth 5Y1.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DENN is creating some value.
DENN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DENN has been reduced compared to 5 years ago.
The debt/assets ratio for DENN has been reduced compared to a year ago.
2.2 Solvency
DENN has an Altman-Z score of 1.36. This is a bad value and indicates that DENN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.36, DENN is in line with its industry, outperforming 46.27% of the companies in the same industry.
DENN has a debt to FCF ratio of 181.24. This is a negative value and a sign of low solvency as DENN would need 181.24 years to pay back of all of its debts.
DENN has a Debt to FCF ratio of 181.24. This is in the lower half of the industry: DENN underperforms 62.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 181.24 | ||
| Altman-Z | 1.36 |
ROIC/WACC1.3
WACC6.73%
2.3 Liquidity
DENN has a Current Ratio of 0.37. This is a bad value and indicates that DENN is not financially healthy enough and could expect problems in meeting its short term obligations.
DENN has a Current ratio of 0.37. This is amonst the worse of the industry: DENN underperforms 83.58% of its industry peers.
DENN has a Quick Ratio of 0.37. This is a bad value and indicates that DENN is not financially healthy enough and could expect problems in meeting its short term obligations.
DENN has a worse Quick ratio (0.35) than 78.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
DENN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.50%.
DENN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.55% yearly.
The Revenue has decreased by -0.53% in the past year.
The Revenue has been decreasing by -3.53% on average over the past years.
EPS 1Y (TTM)-12.5%
EPS 3Y0.65%
EPS 5Y-7.55%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y4.34%
Revenue growth 5Y-3.53%
Sales Q2Q%1.51%
3.2 Future
DENN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.55% yearly.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y-8.69%
EPS Next 2Y0.51%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue Next Year5.16%
Revenue Next 2Y3.55%
Revenue Next 3Y4.72%
Revenue Next 5Y2.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DENN is valuated reasonably with a Price/Earnings ratio of 8.45.
Based on the Price/Earnings ratio, DENN is valued cheaply inside the industry as 96.27% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DENN to the average of the S&P500 Index (26.35), we can say DENN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.88, the valuation of DENN can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DENN indicates a rather cheap valuation: DENN is cheaper than 91.04% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DENN to the average of the S&P500 Index (22.19), we can say DENN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DENN is valued cheaply inside the industry as 80.60% of the companies are valued more expensively.
60.45% of the companies in the same industry are cheaper than DENN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 139.22 | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.51%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
No dividends for DENN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.14
-0.11 (-2.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.63%
Inst Owner Change6.29%
Ins Owners3.13%
Ins Owner Change7.58%
Market Cap212.17M
Analysts80
Price Target6.76 (63.29%)
Short Float %7.25%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.83%
Min EPS beat(2)-12.09%
Max EPS beat(2)-9.57%
EPS beat(4)0
Avg EPS beat(4)-15.77%
Min EPS beat(4)-32.79%
Max EPS beat(4)-8.63%
EPS beat(8)1
Avg EPS beat(8)-13.84%
EPS beat(12)2
Avg EPS beat(12)-12.07%
EPS beat(16)4
Avg EPS beat(16)-7.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.19%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)-0.37%
Revenue beat(8)0
Avg Revenue beat(8)-3.82%
Revenue beat(12)3
Avg Revenue beat(12)-2.46%
Revenue beat(16)4
Avg Revenue beat(16)-2.41%
PT rev (1m)-6.78%
PT rev (3m)-14.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 7.88 | ||
| P/S | 0.47 | ||
| P/FCF | 139.22 | ||
| P/OCF | 6.19 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.82 |
EPS(TTM)0.49
EY11.84%
EPS(NY)0.53
Fwd EY12.69%
FCF(TTM)0.03
FCFY0.72%
OCF(TTM)0.67
OCFY16.16%
SpS8.86
BVpS-0.71
TBVpS-3.75
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | N/A | ||
| ROCE | 11.8% | ||
| ROIC | 8.72% | ||
| ROICexc | 8.77% | ||
| ROICexgc | 14.37% | ||
| OM | 10.44% | ||
| PM (TTM) | 3.79% | ||
| GM | 62.26% | ||
| FCFM | 0.34% |
ROA(3y)7.88%
ROA(5y)8.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.25%
ROIC(5y)9.55%
ROICexc(3y)11.39%
ROICexc(5y)9.92%
ROICexgc(3y)19.84%
ROICexgc(5y)16.2%
ROCE(3y)15.22%
ROCE(5y)12.92%
ROICexcg growth 3Y-8.24%
ROICexcg growth 5Y-5.93%
ROICexc growth 3Y-13.29%
ROICexc growth 5Y-9.87%
OM growth 3Y-9.18%
OM growth 5Y-4.57%
PM growth 3Y-37.59%
PM growth 5Y-26.13%
GM growth 3Y-1.79%
GM growth 5Y1.37%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 181.24 | ||
| Debt/EBITDA | 4.38 | ||
| Cap/Depr | 212.98% | ||
| Cap/Sales | 7.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.61% | ||
| Profit Quality | 8.86% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.36 |
F-Score5
WACC6.73%
ROIC/WACC1.3
Cap/Depr(3y)113.62%
Cap/Depr(5y)86.42%
Cap/Sales(3y)3.68%
Cap/Sales(5y)3.07%
Profit Quality(3y)117.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.5%
EPS 3Y0.65%
EPS 5Y-7.55%
EPS Q2Q%-27.27%
EPS Next Y-8.69%
EPS Next 2Y0.51%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y4.34%
Revenue growth 5Y-3.53%
Sales Q2Q%1.51%
Revenue Next Year5.16%
Revenue Next 2Y3.55%
Revenue Next 3Y4.72%
Revenue Next 5Y2.66%
EBIT growth 1Y-21.26%
EBIT growth 3Y-5.24%
EBIT growth 5Y-7.94%
EBIT Next Year69.44%
EBIT Next 3Y24.35%
EBIT Next 5YN/A
FCF growth 1Y-97.1%
FCF growth 3Y-76.28%
FCF growth 5Y-49.97%
OCF growth 1Y-45.4%
OCF growth 3Y-27.13%
OCF growth 5Y-7.4%