DENNY'S CORP (DENN) Stock Fundamental Analysis
NASDAQ:DENN - Nasdaq - US24869P1049 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to DENN. DENN was compared to 131 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.
In the past year DENN had a positive cash flow from operations.
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.
DENN has a Return On Invested Capital of 8.72%. This is in the better half of the industry: DENN outperforms 70.23% of its industry peers.
DENN had an Average Return On Invested Capital over the past 3 years of 11.25%. This is below the industry average of 13.91%.
| 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 54.20% of its industry peers.
In the last couple of years the Profit Margin of DENN has declined.
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.
DENN has a Gross Margin of 62.26%. This is in the better half of the industry: DENN outperforms 76.34% of its industry peers.
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.
The Debt to FCF ratio of DENN is 181.24, which is on the high side as it means it would take DENN, 181.24 years of fcf income to pay off all of its debts.
DENN has a worse Debt to FCF ratio (181.24) than 61.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 181.24 | ||
| Altman-Z | 1.34 |
ROIC/WACC1.08
WACC8.05%
2.3 Liquidity
A Current Ratio of 0.37 indicates that DENN may have some problems paying its short term obligations.
DENN has a worse Current ratio (0.37) than 83.97% of its industry peers.
A Quick Ratio of 0.35 indicates that DENN may have some problems paying its short term obligations.
The Quick ratio of DENN (0.35) is worse than 78.63% 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
Based on estimates for the next years, DENN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.55% on average per year.
DENN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
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
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.
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 8.04 indicates a reasonable valuation of DENN.
DENN's Price/Earnings ratio is rather cheap when compared to the industry. DENN is cheaper than 96.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. DENN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.50, the valuation of DENN can be described as very cheap.
Based on the Price/Forward Earnings ratio, DENN is valued cheaply inside the industry as 93.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, DENN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DENN is valued cheaper than 85.50% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as DENN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 132.5 | ||
| EV/EBITDA | 7.58 |
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 |
NASDAQ:DENN (7/21/2025, 2:01:10 PM)
3.94
-0.02 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.63%
Inst Owner Change0.53%
Ins Owners3.13%
Ins Owner Change2.38%
Market Cap201.93M
Analysts80
Price Target6.76 (71.57%)
Short Float %7.49%
Short Ratio5.24
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)0%
PT rev (3m)-11.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 7.5 | ||
| P/S | 0.44 | ||
| P/FCF | 132.5 | ||
| P/OCF | 5.89 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.58 |
EPS(TTM)0.49
EY12.44%
EPS(NY)0.53
Fwd EY13.33%
FCF(TTM)0.03
FCFY0.75%
OCF(TTM)0.67
OCFY16.98%
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
WACC8.05%
ROIC/WACC1.08
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%