WENDY'S CO/THE (WEN)
US95058W1009 - Common Stock
Taking everything into account, WEN scores 5 out of 10 in our fundamental rating. WEN was compared to 136 industry peers in the Hotels, Restaurants & Leisure industry. WEN has an average financial health and profitability rating. WEN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WEN had positive earnings in the past year.
In the past year WEN had a positive cash flow from operations.
WEN had positive earnings in each of the past 5 years.
Each year in the past 5 years WEN had a positive operating cash flow.
1.2 Ratios
WEN has a Return On Assets (3.98%) which is in line with its industry peers.
With an excellent Return On Equity value of 70.36%, WEN belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
The Return On Invested Capital of WEN (5.87%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for WEN is below the industry average of 10.04%.
The last Return On Invested Capital (5.87%) for WEN is above the 3 year average (5.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 70.36% | ||
| ROIC | 5.87% |
ROA(3y)3.7%
ROA(5y)3.24%
ROE(3y)50%
ROE(5y)39.59%
ROIC(3y)5.24%
ROIC(5y)4.91%
1.3 Margins
The Profit Margin of WEN (9.45%) is better than 70.37% of its industry peers.
In the last couple of years the Profit Margin of WEN has declined.
WEN's Operating Margin of 17.51% is fine compared to the rest of the industry. WEN outperforms 71.85% of its industry peers.
WEN's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.12%, WEN is doing good in the industry, outperforming 67.41% of the companies in the same industry.
WEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.51% | ||
| PM (TTM) | 9.45% | ||
| GM | 61.12% |
OM growth 3Y1.91%
OM growth 5Y1.57%
PM growth 3Y11.31%
PM growth 5Y-20.19%
GM growth 3Y-0.3%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for WEN is higher compared to a year ago.
2.2 Solvency
WEN has an Altman-Z score of 1.30. This is a bad value and indicates that WEN is not financially healthy and even has some risk of bankruptcy.
WEN has a Altman-Z score (1.30) which is in line with its industry peers.
WEN has a debt to FCF ratio of 11.05. This is a negative value and a sign of low solvency as WEN would need 11.05 years to pay back of all of its debts.
With a Debt to FCF ratio value of 11.05, WEN perfoms like the industry average, outperforming 57.78% of the companies in the same industry.
A Debt/Equity ratio of 11.21 is on the high side and indicates that WEN has dependencies on debt financing.
WEN has a Debt to Equity ratio of 11.21. This is in the lower half of the industry: WEN underperforms 68.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.21 | ||
| Debt/FCF | 11.05 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.81
WACC7.26%
2.3 Liquidity
WEN has a Current Ratio of 2.04. This indicates that WEN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.04, WEN belongs to the top of the industry, outperforming 84.44% of the companies in the same industry.
A Quick Ratio of 2.02 indicates that WEN has no problem at all paying its short term obligations.
The Quick ratio of WEN (2.02) is better than 87.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.79% over the past year.
Measured over the past years, WEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.83% on average per year.
Looking at the last year, WEN shows a small growth in Revenue. The Revenue has grown by 2.43% in the last year.
WEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.53% yearly.
EPS 1Y (TTM)8.79%
EPS 3Y19.39%
EPS 5Y10.83%
EPS Q2Q%9.52%
Revenue 1Y (TTM)2.43%
Revenue growth 3Y7.96%
Revenue growth 5Y6.53%
Sales Q2Q%1.12%
3.2 Future
WEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.50% yearly.
WEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.95% yearly.
EPS Next Y3.96%
EPS Next 2Y6.71%
EPS Next 3Y9.19%
EPS Next 5Y11.5%
Revenue Next Year2.76%
Revenue Next 2Y3.49%
Revenue Next 3Y3.65%
Revenue Next 5Y3.95%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 correctly with a Price/Earnings ratio of 16.96.
Based on the Price/Earnings ratio, WEN is valued a bit cheaper than the industry average as 72.59% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WEN to the average of the S&P500 Index (24.41), we can say WEN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.20, the valuation of WEN can be described as correct.
Based on the Price/Forward Earnings ratio, WEN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
WEN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.96 | ||
| Fwd PE | 15.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WEN is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 85.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.39 | ||
| EV/EBITDA | 11.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)4.29
PEG (5Y)1.57
EPS Next 2Y6.71%
EPS Next 3Y9.19%
5. Dividend
5.1 Amount
WEN has a Yearly Dividend Yield of 5.53%, which is a nice return.
WEN's Dividend Yield is rather good when compared to the industry average which is at 3.12. WEN pays more dividend than 94.81% of the companies in the same industry.
WEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
5.2 History
The dividend of WEN is nicely growing with an annual growth rate of 20.25%!
WEN has paid a dividend for at least 10 years, which is a reliable track record.
WEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)20.25%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
100.44% of the earnings are spent on dividend by WEN. This is not a sustainable payout ratio.
WEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP100.44%
EPS Next 2Y6.71%
EPS Next 3Y9.19%
WENDY'S CO/THE
NASDAQ:WEN (7/26/2024, 7:06:54 PM)
After market: 16.7899 0 (0%)16.79
-0.19 (-1.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.53% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.96 | ||
| Fwd PE | 15.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.29
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.98% | ||
| ROE | 70.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.51% | ||
| PM (TTM) | 9.45% | ||
| GM | 61.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.79%
EPS 3Y19.39%
EPS 5Y
EPS Q2Q%
EPS Next Y3.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.43%
Revenue growth 3Y7.96%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y