WINGSTOP INC (WING) Stock Fundamental Analysis
NASDAQ:WING - Nasdaq - US9741551033 - Common Stock - Currency: USD
Taking everything into account, WING scores 7 out of 10 in our fundamental rating. WING was compared to 134 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 shows excellent growth, but is valued quite expensive already. These ratings could make WING a good candidate 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.
Each year in the past 5 years WING has been profitable.
In the past 5 years WING always reported a positive cash flow from operatings.
1.2 Ratios
WING has a Return On Assets of 24.72%. This is amongst the best in the industry. WING outperforms 97.76% of its industry peers.
WING has a better Return On Invested Capital (20.64%) than 92.54% 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 13.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.72% | ||
| ROE | N/A | ||
| ROIC | 20.64% |
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
The Profit Margin of WING (26.45%) is better than 98.51% of its industry peers.
In the last couple of years the Profit Margin of WING has grown nicely.
WING has a better Operating Margin (25.90%) than 91.79% of its industry peers.
In the last couple of years the Operating Margin of WING has grown nicely.
With an excellent Gross Margin value of 85.69%, WING belongs to the best of the industry, outperforming 97.76% of the companies in the same industry.
In the last couple of years the Gross Margin of WING has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.9% | ||
| PM (TTM) | 26.45% | ||
| GM | 85.69% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WING is creating value.
The number of shares outstanding for WING has been reduced compared to 1 year ago.
The number of shares outstanding for WING has been reduced compared to 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 4.84 indicates that WING is not in any danger for bankruptcy at the moment.
WING has a Altman-Z score of 4.84. This is amongst the best in the industry. WING outperforms 87.31% of its industry peers.
WING has a debt to FCF ratio of 13.49. This is a negative value and a sign of low solvency as WING would need 13.49 years to pay back of all of its debts.
WING's Debt to FCF ratio of 13.49 is in line compared to the rest of the industry. WING outperforms 53.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 4.84 |
ROIC/WACC2.47
WACC8.37%
2.3 Liquidity
WING has a Current Ratio of 3.56. This indicates that WING is financially healthy and has no problem in meeting its short term obligations.
WING's Current ratio of 3.56 is amongst the best of the industry. WING outperforms 94.78% of its industry peers.
A Quick Ratio of 3.56 indicates that WING has no problem at all paying its short term obligations.
WING's Quick ratio of 3.56 is amongst the best of the industry. WING outperforms 96.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.56 | ||
| Quick Ratio | 3.56 |
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.
The Revenue has grown by 30.97% 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 25.66% on average per year.
EPS 1Y (TTM)28.47%
EPS 3Y39.82%
EPS 5Y38.27%
EPS Q2Q%1.02%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y30.36%
Revenue growth 5Y25.66%
Sales Q2Q%17.36%
3.2 Future
WING is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.34% yearly.
Based on estimates for the next years, WING will show a quite strong growth in Revenue. The Revenue will grow by 17.33% on average per year.
EPS Next Y6.75%
EPS Next 2Y16.68%
EPS Next 3Y20.13%
EPS Next 5Y21.34%
Revenue Next Year15.71%
Revenue Next 2Y16.85%
Revenue Next 3Y17.05%
Revenue Next 5Y17.33%
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
With a Price/Earnings ratio of 94.59, WING can be considered very expensive at the moment.
WING's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.35. WING is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 69.67 indicates a quite expensive valuation of WING.
Based on the Price/Forward Earnings ratio, WING is valued a bit more expensive than the industry average as 65.67% of the companies are valued more cheaply.
WING's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.59 | ||
| Fwd PE | 69.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WING is valued a bit more expensive than 79.10% of the companies in the same industry.
WING's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 109.16 | ||
| EV/EBITDA | 56.18 |
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 excellent profitability rating of WING may justify a higher PE ratio.
WING's earnings are expected to grow with 20.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)14.02
PEG (5Y)2.47
EPS Next 2Y16.68%
EPS Next 3Y20.13%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, WING is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.59, WING has a dividend in line with its industry peers.
With a Dividend Yield of 0.30, WING pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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 17.60% 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.
DP17.6%
EPS Next 2Y16.68%
EPS Next 3Y20.13%
350
-0.32 (-0.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners109.52%
Inst Owner Change2.26%
Ins Owners0.7%
Ins Owner Change14.52%
Market Cap9.77B
Analysts82.58
Price Target333.63 (-4.68%)
Short Float %7.4%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend1
Dividend Growth(5Y)20.05%
DP17.6%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)2.27%
Max EPS beat(2)12.57%
EPS beat(4)3
Avg EPS beat(4)4.11%
Min EPS beat(4)-9.66%
Max EPS beat(4)12.57%
EPS beat(8)7
Avg EPS beat(8)11.63%
EPS beat(12)11
Avg EPS beat(12)17.49%
EPS beat(16)12
Avg EPS beat(16)10.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-3.55%
Max Revenue beat(2)-1.86%
Revenue beat(4)1
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)6%
Revenue beat(8)5
Avg Revenue beat(8)1.8%
Revenue beat(12)8
Avg Revenue beat(12)1.69%
Revenue beat(16)8
Avg Revenue beat(16)-0.7%
PT rev (1m)6.58%
PT rev (3m)-1.18%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.36%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-3.36%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.59 | ||
| Fwd PE | 69.67 | ||
| P/S | 15 | ||
| P/FCF | 109.16 | ||
| P/OCF | 70.64 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 56.18 |
EPS(TTM)3.7
EY1.06%
EPS(NY)5.02
Fwd EY1.44%
FCF(TTM)3.21
FCFY0.92%
OCF(TTM)4.96
OCFY1.42%
SpS23.34
BVpS-25.63
TBVpS-29.48
PEG (NY)14.02
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.72% | ||
| ROE | N/A | ||
| ROCE | 27.84% | ||
| ROIC | 20.64% | ||
| ROICexc | 35.28% | ||
| ROICexgc | 50.62% | ||
| OM | 25.9% | ||
| PM (TTM) | 26.45% | ||
| GM | 85.69% | ||
| FCFM | 13.74% |
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-Score6
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.49 | ||
| Debt/EBITDA | 6.32 | ||
| Cap/Depr | 218.72% | ||
| Cap/Sales | 7.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.39% | ||
| Profit Quality | 51.94% | ||
| Current Ratio | 3.56 | ||
| Quick Ratio | 3.56 | ||
| Altman-Z | 4.84 |
F-Score6
WACC8.37%
ROIC/WACC2.47
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 Y6.75%
EPS Next 2Y16.68%
EPS Next 3Y20.13%
EPS Next 5Y21.34%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y30.36%
Revenue growth 5Y25.66%
Sales Q2Q%17.36%
Revenue Next Year15.71%
Revenue Next 2Y16.85%
Revenue Next 3Y17.05%
Revenue Next 5Y17.33%
EBIT growth 1Y27.63%
EBIT growth 3Y33.33%
EBIT growth 5Y31.17%
EBIT Next Year43.94%
EBIT Next 3Y27.89%
EBIT Next 5Y23.26%
FCF growth 1Y28.52%
FCF growth 3Y71.75%
FCF growth 5Y45.71%
OCF growth 1Y50.97%
OCF growth 3Y47.74%
OCF growth 5Y32.51%