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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WING is valued quite expensively, but it does show have an excellent growth rating. This makes WING very considerable 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.
WING had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 24.72%, WING belongs to the best of the industry, outperforming 97.76% of the companies in the same industry.
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 13.88%.
| 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
Looking at the Profit Margin, with a value of 26.45%, WING belongs to the top of the industry, outperforming 98.51% of the companies in the same industry.
WING's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.90%, WING belongs to the top of the industry, outperforming 91.79% of the companies in the same industry.
WING's Operating Margin has improved in the last couple of years.
WING's Gross Margin of 85.69% is amongst the best of the industry. WING outperforms 98.51% of its industry peers.
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
WING has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
WING has a better debt/assets ratio than last year.
2.2 Solvency
WING has an Altman-Z score of 4.73. This indicates that WING is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.73, WING belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 13.49, WING is in line with its industry, outperforming 51.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 4.73 |
ROIC/WACC2.41
WACC8.57%
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 has a Current ratio of 3.56. This is amongst the best in the industry. WING outperforms 96.27% of its industry peers.
A Quick Ratio of 3.56 indicates that WING has no problem at all paying its short term obligations.
The Quick ratio of WING (3.56) is better than 97.76% 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.
WING shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.97%.
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)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 20.42% yearly.
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 Y6.75%
EPS Next 2Y16.68%
EPS Next 3Y20.13%
EPS Next 5Y20.42%
Revenue Next Year15.7%
Revenue Next 2Y16.68%
Revenue Next 3Y16.71%
Revenue Next 5Y17.56%
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.
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
WING is valuated quite expensively with a Price/Earnings ratio of 92.04.
Based on the Price/Earnings ratio, WING is valued a bit more expensive than 60.45% of the companies in the same industry.
WING is valuated expensively when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 67.80 indicates a quite expensive valuation of WING.
WING's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WING is more expensive than 64.93% of the companies in the same industry.
WING's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.04 | ||
| Fwd PE | 67.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WING is valued a bit more expensive than 79.85% 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 | 106.22 | ||
| EV/EBITDA | 54.76 |
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.
The excellent profitability rating of WING may justify a higher PE ratio.
A more expensive valuation may be justified as WING's earnings are expected to grow with 20.13% in the coming years.
PEG (NY)13.64
PEG (5Y)2.4
EPS Next 2Y16.68%
EPS Next 3Y20.13%
5. Dividend
5.1 Amount
WING has a yearly dividend return of 0.33%, which is pretty low.
Compared to an average industry Dividend Yield of 3.87, WING has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, WING's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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%
340.56
+1.22 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners104.14%
Inst Owner Change2.24%
Ins Owners0.29%
Ins Owner Change16.13%
Market Cap9.50B
Analysts82.5
Price Target313.04 (-8.08%)
Short Float %6.75%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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)-3.88%
PT rev (3m)-15.5%
EPS NQ rev (1m)-2.65%
EPS NQ rev (3m)-17.63%
EPS NY rev (1m)3.12%
EPS NY rev (3m)-11.36%
Revenue NQ rev (1m)-3.17%
Revenue NQ rev (3m)-6.09%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.04 | ||
| Fwd PE | 67.8 | ||
| P/S | 14.59 | ||
| P/FCF | 106.22 | ||
| P/OCF | 68.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 54.76 |
EPS(TTM)3.7
EY1.09%
EPS(NY)5.02
Fwd EY1.48%
FCF(TTM)3.21
FCFY0.94%
OCF(TTM)4.96
OCFY1.45%
SpS23.34
BVpS-25.63
TBVpS-29.48
PEG (NY)13.64
PEG (5Y)2.4
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 | 4.73 |
F-Score6
WACC8.57%
ROIC/WACC2.41
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 5Y20.42%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y30.36%
Revenue growth 5Y25.66%
Sales Q2Q%17.36%
Revenue Next Year15.7%
Revenue Next 2Y16.68%
Revenue Next 3Y16.71%
Revenue Next 5Y17.56%
EBIT growth 1Y27.63%
EBIT growth 3Y33.33%
EBIT growth 5Y31.17%
EBIT Next Year43.94%
EBIT Next 3Y27.89%
EBIT Next 5Y21.94%
FCF growth 1Y28.52%
FCF growth 3Y71.75%
FCF growth 5Y45.71%
OCF growth 1Y50.97%
OCF growth 3Y47.74%
OCF growth 5Y32.51%