DENNY'S CORP (DENN) Stock Fundamental Analysis
NASDAQ:DENN - Nasdaq - US24869P1049 - Common Stock - Currency: USD
Overall DENN gets a fundamental rating of 3 out of 10. We evaluated DENN against 136 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DENN had positive earnings in the past year.
In the past year DENN had a positive cash flow from operations.
DENN had positive earnings in 4 of the past 5 years.
Of the past 5 years DENN 4 years had a positive operating cash flow.
1.2 Ratios
DENN has a Return On Assets of 4.35%. This is in the better half of the industry: DENN outperforms 66.91% of its industry peers.
With a decent Return On Invested Capital value of 9.04%, DENN is doing good in the industry, outperforming 70.59% 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 14.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | N/A | ||
| ROIC | 9.04% |
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
Looking at the Profit Margin, with a value of 4.77%, DENN is in line with its industry, outperforming 59.56% of the companies in the same industry.
DENN's Profit Margin has declined in the last couple of years.
The Operating Margin of DENN (10.83%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of DENN has declined.
DENN's Gross Margin of 62.58% is fine compared to the rest of the industry. DENN outperforms 75.74% of its industry peers.
In the last couple of years the Gross Margin of DENN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.83% | ||
| PM (TTM) | 4.77% | ||
| GM | 62.58% |
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.
DENN has less shares outstanding than it did 5 years ago.
DENN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that DENN is in the distress zone and has some risk of bankruptcy.
DENN has a Altman-Z score of 1.32. This is comparable to the rest of the industry: DENN outperforms 41.91% of its industry peers.
The Debt to FCF ratio of DENN is 296.15, which is on the high side as it means it would take DENN, 296.15 years of fcf income to pay off all of its debts.
DENN has a Debt to FCF ratio of 296.15. This is in the lower half of the industry: DENN underperforms 68.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 296.15 | ||
| Altman-Z | 1.32 |
ROIC/WACC1.17
WACC7.75%
2.3 Liquidity
A Current Ratio of 0.42 indicates that DENN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.42, DENN is doing worse than 77.21% of the companies in the same industry.
DENN has a Quick Ratio of 0.42. This is a bad value and indicates that DENN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DENN (0.40) is worse than 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.4 |
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.
Looking at the last year, DENN shows a decrease in Revenue. The Revenue has decreased by -2.50% in the last 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)-2.5%
Revenue growth 3Y4.34%
Revenue growth 5Y-3.53%
Sales Q2Q%1.51%
3.2 Future
DENN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.95% yearly.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y-0.29%
EPS Next 2Y3.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.49%
Revenue Next 2Y3%
Revenue Next 3Y3.59%
Revenue Next 5Y2.66%
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 accelerating.
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
With a Price/Earnings ratio of 7.98, the valuation of DENN can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of DENN indicates a rather cheap valuation: DENN is cheaper than 97.06% of the companies listed in the same industry.
DENN is valuated cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.96, the valuation of DENN can be described as very cheap.
94.85% of the companies in the same industry are more expensive than DENN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.42. DENN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 6.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DENN indicates a rather cheap valuation: DENN is cheaper than 81.62% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DENN is valued a bit more expensive than the industry average as 66.18% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 219.27 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.95%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for DENN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.91
+0.12 (+3.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners88.7%
Inst Owner Change-0.08%
Ins Owners3.36%
Ins Owner Change6.83%
Market Cap201.29M
Analysts81.33
Price Target7.65 (95.65%)
Short Float %8.29%
Short Ratio2.66
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)-9.1%
Min EPS beat(2)-9.57%
Max EPS beat(2)-8.63%
EPS beat(4)0
Avg EPS beat(4)-18.76%
Min EPS beat(4)-32.79%
Max EPS beat(4)-8.63%
EPS beat(8)1
Avg EPS beat(8)-12.92%
EPS beat(12)2
Avg EPS beat(12)-12.31%
EPS beat(16)4
Avg EPS beat(16)-10.82%
Revenue beat(2)0
Avg Revenue beat(2)-3.95%
Min Revenue beat(2)-5.1%
Max Revenue beat(2)-2.8%
Revenue beat(4)0
Avg Revenue beat(4)-4.69%
Min Revenue beat(4)-6.37%
Max Revenue beat(4)-2.8%
Revenue beat(8)1
Avg Revenue beat(8)-3.71%
Revenue beat(12)3
Avg Revenue beat(12)-2.55%
Revenue beat(16)5
Avg Revenue beat(16)-2.39%
PT rev (1m)0%
PT rev (3m)-7.08%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-27.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.92%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 6.96 | ||
| P/S | 0.44 | ||
| P/FCF | 219.27 | ||
| P/OCF | 6.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.25 |
EPS(TTM)0.49
EY12.53%
EPS(NY)0.56
Fwd EY14.37%
FCF(TTM)0.02
FCFY0.46%
OCF(TTM)0.57
OCFY14.65%
SpS8.79
BVpS-0.66
TBVpS-3.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.35% | ||
| ROE | N/A | ||
| ROCE | 12.23% | ||
| ROIC | 9.04% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 15.1% | ||
| OM | 10.83% | ||
| PM (TTM) | 4.77% | ||
| GM | 62.58% | ||
| FCFM | 0.2% |
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-Score6
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 296.15 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 192.29% | ||
| Cap/Sales | 6.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.17% | ||
| Profit Quality | 4.26% | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 1.32 |
F-Score6
WACC7.75%
ROIC/WACC1.17
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-0.29%
EPS Next 2Y3.95%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.5%
Revenue growth 3Y4.34%
Revenue growth 5Y-3.53%
Sales Q2Q%1.51%
Revenue Next Year3.49%
Revenue Next 2Y3%
Revenue Next 3Y3.59%
Revenue Next 5Y2.66%
EBIT growth 1Y-23.39%
EBIT growth 3Y-5.24%
EBIT growth 5Y-7.94%
EBIT Next Year73.33%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-98.52%
FCF growth 3Y-76.28%
FCF growth 5Y-49.97%
OCF growth 1Y-59.12%
OCF growth 3Y-27.13%
OCF growth 5Y-7.4%