DENNY'S CORP (DENN) Stock Fundamental Analysis
NASDAQ:DENN - Nasdaq - US24869P1049 - Common Stock - Currency: USD
DENN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 134 industry peers in the Hotels, Restaurants & Leisure industry. DENN has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
DENN had a positive operating cash flow in the past year.
Of the past 5 years DENN 4 years were profitable.
Of the past 5 years DENN 4 years had a positive operating cash flow.
1.2 Ratios
DENN has a Return On Assets of 3.53%. This is comparable to the rest of the industry: DENN outperforms 59.70% of its industry peers.
DENN has a better Return On Invested Capital (8.72%) than 70.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DENN is below the industry average of 13.88%.
| 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's Profit Margin of 3.79% is in line compared to the rest of the industry. DENN outperforms 53.73% of its industry peers.
In the last couple of years the Profit Margin of DENN has declined.
With a Operating Margin value of 10.44%, DENN perfoms like the industry average, outperforming 52.24% of the companies in the same industry.
DENN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 62.26%, DENN is in the better half of the industry, outperforming 74.63% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DENN is still creating some value.
Compared to 1 year ago, DENN has less shares outstanding
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 1.34. This is a bad value and indicates that DENN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DENN (1.34) is comparable to the rest of the 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 worse Debt to FCF ratio (181.24) than 66.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 181.24 | ||
| Altman-Z | 1.34 |
ROIC/WACC1.12
WACC7.82%
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 in the lower half of the industry: DENN underperforms 79.85% 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 Quick ratio of 0.35. This is in the lower half of the industry: DENN underperforms 76.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The earnings per share for DENN have decreased strongly by -12.50% in the last year.
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 -0.53% in the last year.
DENN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.53% yearly.
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.
Based on estimates for the next years, DENN will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.98 indicates a rather cheap valuation of DENN.
Based on the Price/Earnings ratio, DENN is valued cheaply inside the industry as 97.01% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.20, DENN is valued rather cheaply.
A Price/Forward Earnings ratio of 7.44 indicates a rather cheap valuation of DENN.
93.28% 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 22.13. DENN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 7.44 |
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 82.84% 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 61.94% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 131.49 | ||
| EV/EBITDA | 7.59 |
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 |
3.91
-0.06 (-1.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners88.7%
Inst Owner Change6.29%
Ins Owners3.36%
Ins Owner Change7.58%
Market Cap200.39M
Analysts81.33
Price Target7.25 (85.42%)
Short Float %9.06%
Short Ratio3.07
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)-5.24%
PT rev (3m)-8.72%
EPS NQ rev (1m)-11.53%
EPS NQ rev (3m)-21.71%
EPS NY rev (1m)-8.43%
EPS NY rev (3m)-10.96%
Revenue NQ rev (1m)1.47%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)1.61%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 7.44 | ||
| P/S | 0.44 | ||
| P/FCF | 131.49 | ||
| P/OCF | 5.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.59 |
EPS(TTM)0.49
EY12.53%
EPS(NY)0.53
Fwd EY13.43%
FCF(TTM)0.03
FCFY0.76%
OCF(TTM)0.67
OCFY17.11%
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 | 1.34 |
F-Score5
WACC7.82%
ROIC/WACC1.12
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%