WINGSTOP INC (WING) Stock Fundamental Analysis
NASDAQ:WING - Nasdaq - US9741551033 - Common Stock - Currency: USD
Overall WING gets a fundamental rating of 7 out of 10. We evaluated WING against 136 industry peers in the Hotels, Restaurants & Leisure industry. Both the health and profitability get an excellent rating, making WING a very profitable company, without any liquidiy or solvency issues. 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
WING had positive earnings in the past year.
In the past year WING had a positive cash flow from operations.
WING had positive earnings in each of the past 5 years.
Each year in the past 5 years WING had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WING (15.18%) is better than 93.38% of its industry peers.
With an excellent Return On Invested Capital value of 19.64%, WING belongs to the best of the industry, outperforming 93.38% of the companies in the same industry.
WING had an Average Return On Invested Capital over the past 3 years of 22.46%. This is significantly above the industry average of 14.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.18% | ||
| ROE | N/A | ||
| ROIC | 19.64% |
ROA(3y)15.41%
ROA(5y)14.87%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)22.46%
ROIC(5y)23.45%
1.3 Margins
With an excellent Profit Margin value of 17.37%, WING belongs to the best of the industry, outperforming 89.71% of the companies in the same industry.
In the last couple of years the Profit Margin of WING has grown nicely.
WING has a Operating Margin of 26.62%. This is amongst the best in the industry. WING outperforms 92.65% of its industry peers.
WING's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 85.36%, WING belongs to the best of the industry, outperforming 98.53% of the companies in the same industry.
WING's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.62% | ||
| PM (TTM) | 17.37% | ||
| GM | 85.36% |
OM growth 3Y2.28%
OM growth 5Y4.38%
PM growth 3Y4.75%
PM growth 5Y11.1%
GM growth 3Y2.72%
GM growth 5Y1.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WING is creating value.
Compared to 1 year ago, WING has less shares outstanding
WING has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WING has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.96 indicates that WING is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.96, WING belongs to the top of the industry, outperforming 86.76% of the companies in the same industry.
The Debt to FCF ratio of WING is 11.41, which is on the high side as it means it would take WING, 11.41 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.41, WING perfoms like the industry average, outperforming 54.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.41 | ||
| Altman-Z | 3.96 |
ROIC/WACC2.38
WACC8.27%
2.3 Liquidity
WING has a Current Ratio of 4.52. This indicates that WING is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WING (4.52) is better than 97.79% of its industry peers.
A Quick Ratio of 4.52 indicates that WING has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.52, WING belongs to the top of the industry, outperforming 97.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 4.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.47% over the past year.
WING shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.27% yearly.
WING shows a strong growth in Revenue. In the last year, the Revenue has grown by 36.03%.
WING shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.66% yearly.
EPS 1Y (TTM)28.47%
EPS 3Y39.82%
EPS 5Y38.27%
EPS Q2Q%1.02%
Revenue 1Y (TTM)36.03%
Revenue growth 3Y30.36%
Revenue growth 5Y25.66%
Sales Q2Q%17.35%
3.2 Future
The Earnings Per Share is expected to grow by 20.42% on average over the next years. This is a very strong growth
Based on estimates for the next years, WING will show a quite strong growth in Revenue. The Revenue will grow by 17.56% on average per year.
EPS Next Y3.52%
EPS Next 2Y15.66%
EPS Next 3Y19.83%
EPS Next 5Y20.42%
Revenue Next Year16.65%
Revenue Next 2Y17%
Revenue Next 3Y16.94%
Revenue Next 5Y17.56%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 73.00 indicates a quite expensive valuation of WING.
WING's Price/Earnings ratio is in line with the industry average.
WING's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 54.72, WING can be considered very expensive at the moment.
WING's Price/Forward Earnings ratio is in line with the industry average.
WING's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73 | ||
| Fwd PE | 54.72 |
4.2 Price Multiples
76.47% of the companies in the same industry are cheaper than WING, based on the Enterprise Value to EBITDA ratio.
WING's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.31 | ||
| EV/EBITDA | 43.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WING has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WING's earnings are expected to grow with 19.83% in the coming years.
PEG (NY)20.74
PEG (5Y)1.91
EPS Next 2Y15.66%
EPS Next 3Y19.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, WING is not a good candidate for dividend investing.
WING's Dividend Yield is a higher than the industry average which is at 3.85.
With a Dividend Yield of 0.42, WING pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
On average, the dividend of WING grows each year by 20.05%, which is quite nice.
WING has been paying a dividend for over 5 years, so it has already some track record.
WING has decreased its dividend recently.
Dividend Growth(5Y)20.05%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WING pays out 26.55% of its income as dividend. This is a sustainable payout ratio.
The dividend of WING is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP26.55%
EPS Next 2Y15.66%
EPS Next 3Y19.83%
270.11
+10.44 (+4.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners104.14%
Inst Owner Change0.24%
Ins Owners0.29%
Ins Owner Change13.5%
Market Cap7.54B
Analysts82.5
Price Target302 (11.81%)
Short Float %7.34%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend1
Dividend Growth(5Y)20.05%
DP26.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.69%
Min EPS beat(2)-9.66%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)7.66%
Min EPS beat(4)-9.66%
Max EPS beat(4)26.78%
EPS beat(8)7
Avg EPS beat(8)13.63%
EPS beat(12)10
Avg EPS beat(12)15.09%
EPS beat(16)12
Avg EPS beat(16)11.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-3.55%
Max Revenue beat(2)-1.43%
Revenue beat(4)2
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)6%
Revenue beat(8)6
Avg Revenue beat(8)2.93%
Revenue beat(12)8
Avg Revenue beat(12)0.79%
Revenue beat(16)9
Avg Revenue beat(16)-0.54%
PT rev (1m)-10.55%
PT rev (3m)-20.38%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-21.43%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)-17.13%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-3.25%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73 | ||
| Fwd PE | 54.72 | ||
| P/S | 12.04 | ||
| P/FCF | 71.31 | ||
| P/OCF | 47.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.71 |
EPS(TTM)3.7
EY1.37%
EPS(NY)4.94
Fwd EY1.83%
FCF(TTM)3.79
FCFY1.4%
OCF(TTM)5.65
OCFY2.09%
SpS22.43
BVpS-24.21
TBVpS-28.3
PEG (NY)20.74
PEG (5Y)1.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.18% | ||
| ROE | N/A | ||
| ROCE | 26.5% | ||
| ROIC | 19.64% | ||
| ROICexc | 39.48% | ||
| ROICexgc | 62.07% | ||
| OM | 26.62% | ||
| PM (TTM) | 17.37% | ||
| GM | 85.36% | ||
| FCFM | 16.89% |
ROA(3y)15.41%
ROA(5y)14.87%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)22.46%
ROIC(5y)23.45%
ROICexc(3y)39.7%
ROICexc(5y)37%
ROICexgc(3y)90.29%
ROICexgc(5y)109.89%
ROCE(3y)30.29%
ROCE(5y)31.63%
ROICexcg growth 3Y-10.66%
ROICexcg growth 5Y-11.71%
ROICexc growth 3Y6.82%
ROICexc growth 5Y8.37%
OM growth 3Y2.28%
OM growth 5Y4.38%
PM growth 3Y4.75%
PM growth 5Y11.1%
GM growth 3Y2.72%
GM growth 5Y1.69%
F-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.41 | ||
| Debt/EBITDA | 6.48 | ||
| Cap/Depr | 266.44% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 7.34 | ||
| Cash Conversion | 84.69% | ||
| Profit Quality | 97.21% | ||
| Current Ratio | 4.52 | ||
| Quick Ratio | 4.52 | ||
| Altman-Z | 3.96 |
F-Score7
WACC8.27%
ROIC/WACC2.38
Cap/Depr(3y)264.83%
Cap/Depr(5y)245.57%
Cap/Sales(3y)7.96%
Cap/Sales(5y)7.24%
Profit Quality(3y)103.72%
Profit Quality(5y)123.06%
High Growth Momentum
Growth
EPS 1Y (TTM)28.47%
EPS 3Y39.82%
EPS 5Y38.27%
EPS Q2Q%1.02%
EPS Next Y3.52%
EPS Next 2Y15.66%
EPS Next 3Y19.83%
EPS Next 5Y20.42%
Revenue 1Y (TTM)36.03%
Revenue growth 3Y30.36%
Revenue growth 5Y25.66%
Sales Q2Q%17.35%
Revenue Next Year16.65%
Revenue Next 2Y17%
Revenue Next 3Y16.94%
Revenue Next 5Y17.56%
EBIT growth 1Y41.3%
EBIT growth 3Y33.33%
EBIT growth 5Y31.17%
EBIT Next Year45.63%
EBIT Next 3Y26.86%
EBIT Next 5Y21.94%
FCF growth 1Y30.85%
FCF growth 3Y71.75%
FCF growth 5Y45.71%
OCF growth 1Y29.61%
OCF growth 3Y47.74%
OCF growth 5Y32.51%