6.25 USD
-0.01 (-0.16%)
6.24 USD
-0.01 (-0.16%)
Overall DENN gets a fundamental rating of 3 out of 10. We evaluated DENN against 132 industry peers in the Hotels, Restaurants & Leisure industry. While DENN is still in line with the averages on profitability rating, there are concerns on its financial health. DENN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year DENN was profitable.
- DENN had a positive operating cash flow in the past year.
- Of the past 5 years DENN 4 years were profitable.
- Of the past 5 years DENN 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.03%, DENN perfoms like the industry average, outperforming 49.62% of the companies in the same industry.
- DENN has a better Return On Invested Capital (7.99%) than 64.66% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DENN is in line with the industry average of 10.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | N/A | ||
| ROIC | 7.99% |
ROA(3y)7.88%
ROA(5y)8.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.25%
ROIC(5y)9.55%
1.3 Margins
- With a Profit Margin value of 2.24%, DENN perfoms like the industry average, outperforming 51.13% of the companies in the same industry.
- DENN's Profit Margin has declined in the last couple of years.
- DENN has a Operating Margin of 9.65%. This is comparable to the rest of the industry: DENN outperforms 55.64% of its industry peers.
- DENN's Operating Margin has declined in the last couple of years.
- The Gross Margin of DENN (62.12%) is better than 76.69% of its industry peers.
- DENN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.65% | ||
| PM (TTM) | 2.24% | ||
| GM | 62.12% |
OM growth 3Y-9.18%
OM growth 5Y-4.57%
PM growth 3Y-37.59%
PM growth 5Y-26.13%
GM growth 3Y-1.79%
GM growth 5Y1.37%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DENN is still creating some value.
- DENN has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for DENN has been reduced compared to 5 years ago.
- The debt/assets ratio for DENN has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.42, we must say that DENN is in the distress zone and has some risk of bankruptcy.
- DENN has a Altman-Z score (1.42) which is in line with its industry peers.
- The Debt to FCF ratio of DENN is 113.41, which is on the high side as it means it would take DENN, 113.41 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of DENN (113.41) is worse than 60.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 113.41 | ||
| Altman-Z | 1.42 |
ROIC/WACC1.07
WACC7.47%
2.3 Liquidity
- A Current Ratio of 0.35 indicates that DENN may have some problems paying its short term obligations.
- DENN's Current ratio of 0.35 is on the low side compared to the rest of the industry. DENN is outperformed by 84.21% of its industry peers.
- DENN has a Quick Ratio of 0.35. This is a bad value and indicates that DENN is not financially healthy enough and could expect problems in meeting its short term obligations.
- DENN has a worse Quick ratio (0.33) than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.35 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
- The earnings per share for DENN have decreased strongly by -25.00% in the last year.
- Measured over the past years, DENN shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.55% on average per year.
- DENN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.93%.
- The Revenue has been decreasing by -3.53% on average over the past years.
EPS 1Y (TTM)-25%
EPS 3Y0.65%
EPS 5Y-7.55%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)0.93%
Revenue growth 3Y4.34%
Revenue growth 5Y-3.53%
Sales Q2Q%1.33%
3.2 Future
- The Earnings Per Share is expected to grow by 12.25% on average over the next years. This is quite good.
- Based on estimates for the next years, DENN will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
EPS Next Y-20.75%
EPS Next 2Y-9.67%
EPS Next 3Y12.25%
EPS Next 5YN/A
Revenue Next Year4.23%
Revenue Next 2Y2.88%
Revenue Next 3Y4.31%
Revenue Next 5Y2.66%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- DENN is valuated correctly with a Price/Earnings ratio of 16.03.
- 78.20% of the companies in the same industry are more expensive than DENN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, DENN is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 14.73, the valuation of DENN can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DENN indicates a somewhat cheap valuation: DENN is cheaper than 75.94% of the companies listed in the same industry.
- DENN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 14.73 |
4.2 Price Multiples
- DENN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DENN is cheaper than 67.67% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DENN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 135.58 | ||
| EV/EBITDA | 9.66 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as DENN's earnings are expected to grow with 12.25% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.67%
EPS Next 3Y12.25%
5. Dividend
5.1 Amount
- No dividends for DENN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
DENNY'S CORP / DENN FAQ
What is the fundamental rating for DENN stock?
ChartMill assigns a fundamental rating of 3 / 10 to DENN.
What is the valuation status for DENN stock?
ChartMill assigns a valuation rating of 4 / 10 to DENNY'S CORP (DENN). This can be considered as Fairly Valued.
How profitable is DENNY'S CORP (DENN) stock?
DENNY'S CORP (DENN) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for DENN stock?
The Price/Earnings (PE) ratio for DENNY'S CORP (DENN) is 16.03 and the Price/Book (PB) ratio is -9.85.
What is the expected EPS growth for DENNY'S CORP (DENN) stock?
The Earnings per Share (EPS) of DENNY'S CORP (DENN) is expected to decline by -20.75% in the next year.