8.33 USD
+0.05 (+0.6%)
8.3597 USD
+0.03 (+0.36%)
WEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 133 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. WEN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WEN was profitable.
WEN had a positive operating cash flow in the past year.
Each year in the past 5 years WEN has 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 (3.74%) which is comparable to the rest of the industry.
The Return On Equity of WEN (170.42%) is better than 98.50% of its industry peers.
The Return On Invested Capital of WEN (6.67%) is comparable to the rest of the industry.
WEN had an Average Return On Invested Capital over the past 3 years of 5.43%. This is below the industry average of 10.39%.
The 3 year average ROIC (5.43%) for WEN is below the current ROIC(6.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 170.42% | ||
| ROIC | 6.67% |
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
WEN's Profit Margin of 8.43% is fine compared to the rest of the industry. WEN outperforms 69.92% of its industry peers.
WEN's Profit Margin has improved in the last couple of years.
WEN's Operating Margin of 17.49% is fine compared to the rest of the industry. WEN outperforms 75.94% of its industry peers.
WEN's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 62.41%, WEN is doing good in the industry, outperforming 78.20% of the companies in the same industry.
In the last couple of years the Gross Margin of WEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.49% | ||
| PM (TTM) | 8.43% | ||
| GM | 62.41% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WEN is destroying value.
WEN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WEN has less shares outstanding
Compared to 1 year ago, WEN has a worse debt to assets ratio.
2.2 Solvency
WEN has an Altman-Z score of 0.98. This is a bad value and indicates that WEN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.98, WEN is not doing good in the industry: 63.91% of the companies in the same industry are doing better.
WEN has a debt to FCF ratio of 14.24. This is a negative value and a sign of low solvency as WEN would need 14.24 years to pay back of all of its debts.
The Debt to FCF ratio of WEN (14.24) is comparable to the rest of the industry.
A Debt/Equity ratio of 26.89 is on the high side and indicates that WEN has dependencies on debt financing.
With a Debt to Equity ratio value of 26.89, WEN is not doing good in the industry: 69.92% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.96
WACC6.98%
2.3 Liquidity
WEN has a Current Ratio of 0.81. This is a bad value and indicates that WEN is not financially healthy enough and could expect problems in meeting its short term obligations.
WEN has a Current ratio (0.81) which is comparable to the rest of the industry.
WEN has a Quick Ratio of 0.81. This is a bad value and indicates that WEN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.80, WEN perfoms like the industry average, outperforming 45.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.08% over the past year.
The Earnings Per Share has been growing by 11.13% on average over the past years. This is quite good.
WEN shows a decrease in Revenue. In the last year, the revenue decreased by -0.21%.
Measured over the past years, WEN shows a small growth in Revenue. The Revenue has been growing by 5.62% on average per year.
EPS 1Y (TTM)2.08%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%-4%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
3.2 Future
The Earnings Per Share is expected to grow by 5.27% on average over the next years.
WEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.15% yearly.
EPS Next Y-11.76%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
EPS Next 5Y5.27%
Revenue Next Year-2.84%
Revenue Next 2Y0.07%
Revenue Next 3Y0.49%
Revenue Next 5Y2.15%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
WEN is valuated reasonably with a Price/Earnings ratio of 8.50.
Based on the Price/Earnings ratio, WEN is valued cheaply inside the industry as 93.98% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WEN to the average of the S&P500 Index (26.51), we can say WEN is valued rather cheaply.
WEN is valuated reasonably with a Price/Forward Earnings ratio of 9.42.
Based on the Price/Forward Earnings ratio, WEN is valued cheaply inside the industry as 90.23% of the companies are valued more expensively.
WEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 75.94% of the companies in the same industry.
WEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WEN is cheaper than 96.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.67 | ||
| EV/EBITDA | 8.53 |
4.3 Compensation for Growth
The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.76%, WEN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.66, WEN pays a better dividend. On top of this WEN pays more dividend than 99.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
5.2 History
On average, the dividend of WEN grows each year by 32.37%, which is quite nice.
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
WEN pays out 82.75% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP82.75%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
8.33
+0.05 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners91.11%
Inst Owner Change-7.33%
Ins Owners8.88%
Ins Owner Change0.21%
Market Cap1.59B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.67
Price Target10.04 (20.53%)
Short Float %15.41%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.76% |
Yearly Dividend1
Dividend Growth(5Y)32.37%
DP82.75%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.95%
Min EPS beat(2)12.55%
Max EPS beat(2)21.35%
EPS beat(4)3
Avg EPS beat(4)8.99%
Min EPS beat(4)-0.22%
Max EPS beat(4)21.35%
EPS beat(8)4
Avg EPS beat(8)3.46%
EPS beat(12)8
Avg EPS beat(12)3.73%
EPS beat(16)11
Avg EPS beat(16)3.25%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)0.19%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.68%
Revenue beat(12)4
Avg Revenue beat(12)-0.8%
Revenue beat(16)5
Avg Revenue beat(16)-0.87%
PT rev (1m)-2.16%
PT rev (3m)-13.8%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-19.31%
EPS NY rev (1m)2.11%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 9.42 | ||
| P/S | 0.72 | ||
| P/FCF | 6.67 | ||
| P/OCF | 4.61 | ||
| P/B | 14.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.53 |
EPS(TTM)0.98
EY11.76%
EPS(NY)0.88
Fwd EY10.61%
FCF(TTM)1.25
FCFY15%
OCF(TTM)1.81
OCFY21.69%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.76
Graham Number3.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 170.42% | ||
| ROCE | 9.23% | ||
| ROIC | 6.67% | ||
| ROICexc | 7.17% | ||
| ROICexgc | 14.39% | ||
| OM | 17.49% | ||
| PM (TTM) | 8.43% | ||
| GM | 62.41% | ||
| FCFM | 10.77% |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 65.2% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.65% | ||
| Profit Quality | 127.8% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.98 |
F-Score6
WACC6.98%
ROIC/WACC0.96
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)2.08%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%-4%
EPS Next Y-11.76%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
EPS Next 5Y5.27%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
Revenue Next Year-2.84%
Revenue Next 2Y0.07%
Revenue Next 3Y0.49%
Revenue Next 5Y2.15%
EBIT growth 1Y7%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year38.87%
EBIT Next 3Y12.3%
EBIT Next 5Y9.99%
FCF growth 1Y-6.95%
FCF growth 3Y-0.86%
FCF growth 5Y4.01%
OCF growth 1Y-0.84%
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 for WEN stock?
ChartMill assigns a valuation rating of 7 / 10 to WENDY'S CO/THE (WEN). This can be considered as Undervalued.
How profitable is WENDY'S CO/THE (WEN) stock?
WENDY'S CO/THE (WEN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of WENDY'S CO/THE (WEN) stock?
The Price/Earnings (PE) ratio for WENDY'S CO/THE (WEN) is 8.5 and the Price/Book (PB) ratio is 14.52.
How sustainable is the dividend of WENDY'S CO/THE (WEN) stock?
The dividend rating of WENDY'S CO/THE (WEN) is 7 / 10 and the dividend payout ratio is 82.75%.