WINGSTOP INC (WING)
US9741551033 - Common Stock
Taking everything into account, WING scores 6 out of 10 in our fundamental rating. WING was compared to 135 industry peers in the Hotels, Restaurants & Leisure industry. WING gets an excellent profitability rating and is at the same time showing great financial health properties. WING is valued quite expensive, but it does show an excellent growth. With these ratings, WING could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year WING was profitable.
WING had a positive operating cash flow in the past year.
In the past 5 years WING has always been profitable.
Each year in the past 5 years WING had a positive operating cash flow.
1.2 Ratios
WING has a better Return On Assets (18.58%) than 96.27% of its industry peers.
The Return On Invested Capital of WING (28.97%) is better than 96.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WING is significantly above the industry average of 10.32%.
The 3 year average ROIC (24.61%) for WING is below the current ROIC(28.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.58% | ||
| ROE | N/A | ||
| ROIC | 28.97% |
ROA(3y)16.06%
ROA(5y)14.31%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.61%
ROIC(5y)24.7%
1.3 Margins
The Profit Margin of WING (15.26%) is better than 85.82% of its industry peers.
WING's Profit Margin has been stable in the last couple of years.
WING's Operating Margin of 25.63% is amongst the best of the industry. WING outperforms 91.79% of its industry peers.
WING's Operating Margin has been stable in the last couple of years.
WING has a Gross Margin of 84.64%. This is amongst the best in the industry. WING outperforms 94.78% of its industry peers.
In the last couple of years the Gross Margin of WING has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.63% | ||
| PM (TTM) | 15.26% | ||
| GM | 84.64% |
OM growth 3Y5.48%
OM growth 5Y0.38%
PM growth 3Y17.66%
PM growth 5Y1.49%
GM growth 3Y2.13%
GM growth 5Y1.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WING is creating value.
WING has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WING remains at a similar level compared to 5 years ago.
WING has a worse debt/assets ratio than last year.
2.2 Solvency
WING has an Altman-Z score of 8.59. This indicates that WING is financially healthy and has little risk of bankruptcy at the moment.
WING's Altman-Z score of 8.59 is amongst the best of the industry. WING outperforms 98.51% of its industry peers.
The Debt to FCF ratio of WING is 8.82, which is on the high side as it means it would take WING, 8.82 years of fcf income to pay off all of its debts.
WING has a Debt to FCF ratio of 8.82. This is in the better half of the industry: WING outperforms 62.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 8.82 | ||
| Altman-Z | 8.59 |
ROIC/WACC3.27
WACC8.87%
2.3 Liquidity
A Current Ratio of 2.03 indicates that WING has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.03, WING belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
WING has a Quick Ratio of 2.03. This indicates that WING is financially healthy and has no problem in meeting its short term obligations.
WING's Quick ratio of 2.03 is amongst the best of the industry. WING outperforms 88.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
WING shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.33%, which is quite impressive.
WING shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.28% yearly.
The Revenue has grown by 28.65% in the past year. This is a very strong growth!
Measured over the past years, WING shows a very strong growth in Revenue. The Revenue has been growing by 24.60% on average per year.
EPS 1Y (TTM)35.33%
EPS 3Y53.39%
EPS 5Y24.28%
EPS growth Q2Q6.67%
Revenue 1Y (TTM)28.65%
Revenue growth 3Y22.74%
Revenue growth 5Y24.6%
Revenue growth Q2Q21.12%
3.2 Future
Based on estimates for the next years, WING will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.30% on average per year.
The Revenue is expected to grow by 17.37% on average over the next years. This is quite good.
EPS Next Y23%
EPS Next 2Y22.59%
EPS Next 3Y22.15%
EPS Next 5Y18.3%
Revenue Next Year21.88%
Revenue Next 2Y18.68%
Revenue Next 3Y16.94%
Revenue Next 5Y17.37%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
WING is valuated quite expensively with a Price/Earnings ratio of 144.41.
Based on the Price/Earnings ratio, WING is valued a bit more expensive than 66.42% of the companies in the same industry.
When comparing the Price/Earnings ratio of WING to the average of the S&P500 Index (24.83), we can say WING is valued expensively.
WING is valuated quite expensively with a Price/Forward Earnings ratio of 117.40.
62.69% of the companies in the same industry are cheaper than WING, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.32. WING is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 144.41 | ||
| Fwd PE | 117.4 |
4.2 Price Multiples
82.09% of the companies in the same industry are cheaper than WING, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WING indicates a slightly more expensive valuation: WING is more expensive than 62.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 130.62 | ||
| EV/EBITDA | 87.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WING does not grow enough to justify the current Price/Earnings ratio.
WING has an outstanding profitability rating, which may justify a higher PE ratio.
WING's earnings are expected to grow with 22.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.28
PEG (5Y)5.95
EPS Next 2Y22.59%
EPS Next 3Y22.15%
5. Dividend
5.1 Amount
WING has a yearly dividend return of 0.24%, which is pretty low.
WING's Dividend Yield is a higher than the industry average which is at 2.55.
Compared to an average S&P500 Dividend Yield of 2.39, WING's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
The dividend of WING decreases each year by -33.64%.
WING has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-33.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WING pays out 35.47% of its income as dividend. This is a sustainable payout ratio.
DP35.47%
EPS Next 2Y22.59%
EPS Next 3Y22.15%
WINGSTOP INC
NASDAQ:WING (4/17/2024, 7:00:03 PM)
After market: 359.57 0 (0%)359.57
-11.1 (-2.99%)
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 Cap10.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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)
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EPS beat(16)
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Revenue beat(2)
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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 | 144.41 | ||
| Fwd PE | 117.4 | ||
| 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)6.28
PEG (5Y)5.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.58% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.63% | ||
| PM (TTM) | 15.26% | ||
| GM | 84.64% | ||
| 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 Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 | ||
| 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)
Growth
EPS 1Y (TTM)35.33%
EPS 3Y53.39%
EPS 5Y
EPS growth Q2Q
EPS Next Y23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.65%
Revenue growth 3Y22.74%
Revenue growth 5Y
Revenue growth 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