DENNY'S CORP (DENN) Stock Fundamental Analysis
NASDAQ:DENN - Nasdaq - US24869P1049 - Common Stock - Currency: USD
Overall DENN gets a fundamental rating of 3 out of 10. We evaluated DENN against 133 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.
DENN had positive earnings in 4 of the past 5 years.
DENN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DENN has a Return On Assets of 3.53%. This is comparable to the rest of the industry: DENN outperforms 58.65% of its industry peers.
The Return On Invested Capital of DENN (8.72%) is better than 69.92% of its industry peers.
DENN had an Average Return On Invested Capital over the past 3 years of 11.25%. This is below the industry average of 13.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | N/A | ||
| ROIC | 8.72% |
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
The Profit Margin of DENN (3.79%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DENN has declined.
DENN's Operating Margin of 10.44% is in line compared to the rest of the industry. DENN outperforms 53.38% of its industry peers.
In the last couple of years the Operating Margin of DENN has declined.
DENN has a better Gross Margin (62.26%) than 75.19% of its industry peers.
In the last couple of years the Gross Margin of DENN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.44% | ||
| PM (TTM) | 3.79% | ||
| GM | 62.26% |
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
DENN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
DENN has a better debt/assets ratio than last year.
2.2 Solvency
DENN has an Altman-Z score of 1.35. This is a bad value and indicates that DENN is not financially healthy and even has some risk of bankruptcy.
DENN has a Altman-Z score of 1.35. This is comparable to the rest of the industry: DENN outperforms 46.62% of its industry peers.
DENN has a debt to FCF ratio of 181.24. This is a negative value and a sign of low solvency as DENN would need 181.24 years to pay back of all of its debts.
With a Debt to FCF ratio value of 181.24, DENN is not doing good in the industry: 62.41% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 181.24 | ||
| Altman-Z | 1.35 |
ROIC/WACC1.3
WACC6.72%
2.3 Liquidity
DENN has a Current Ratio of 0.37. 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 Current ratio (0.37) than 83.46% of its industry peers.
DENN has a Quick Ratio of 0.37. 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 Quick ratio of 0.35. This is in the lower half of the industry: DENN underperforms 78.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
DENN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.50%.
The Earnings Per Share has been decreasing by -7.55% on average over the past years.
Looking at the last year, DENN shows a decrease in Revenue. The Revenue has decreased by -0.53% in the last year.
Measured over the past years, DENN shows a decrease in Revenue. The Revenue has been decreasing by -3.53% on average per year.
EPS 1Y (TTM)-12.5%
EPS 3Y0.65%
EPS 5Y-7.55%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y4.34%
Revenue growth 5Y-3.53%
Sales Q2Q%1.51%
3.2 Future
The Earnings Per Share is expected to grow by 8.55% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y-8.69%
EPS Next 2Y0.51%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue Next Year5.16%
Revenue Next 2Y3.55%
Revenue Next 3Y4.72%
Revenue Next 5Y2.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.37, the valuation of DENN can be described as reasonable.
DENN's Price/Earnings ratio is rather cheap when compared to the industry. DENN is cheaper than 96.99% of the companies in the same industry.
DENN is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.81, the valuation of DENN can be described as very cheap.
DENN's Price/Forward Earnings ratio is rather cheap when compared to the industry. DENN is cheaper than 91.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, DENN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DENN is valued cheaper than 82.71% of the companies in the same industry.
DENN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 137.88 | ||
| EV/EBITDA | 7.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.51%
EPS Next 3Y8.55%
5. Dividend
5.1 Amount
No dividends for DENN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.1
-0.02 (-0.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners95.63%
Inst Owner Change6.29%
Ins Owners3.13%
Ins Owner Change7.58%
Market Cap210.12M
Analysts80
Price Target6.76 (64.88%)
Short Float %7.25%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.83%
Min EPS beat(2)-12.09%
Max EPS beat(2)-9.57%
EPS beat(4)0
Avg EPS beat(4)-15.77%
Min EPS beat(4)-32.79%
Max EPS beat(4)-8.63%
EPS beat(8)1
Avg EPS beat(8)-13.84%
EPS beat(12)2
Avg EPS beat(12)-12.07%
EPS beat(16)4
Avg EPS beat(16)-7.01%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-0.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.19%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)-0.37%
Revenue beat(8)0
Avg Revenue beat(8)-3.82%
Revenue beat(12)3
Avg Revenue beat(12)-2.46%
Revenue beat(16)4
Avg Revenue beat(16)-2.41%
PT rev (1m)-6.78%
PT rev (3m)-14.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 7.81 | ||
| P/S | 0.46 | ||
| P/FCF | 137.88 | ||
| P/OCF | 6.13 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.71 |
EPS(TTM)0.49
EY11.95%
EPS(NY)0.53
Fwd EY12.81%
FCF(TTM)0.03
FCFY0.73%
OCF(TTM)0.67
OCFY16.32%
SpS8.86
BVpS-0.71
TBVpS-3.75
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | N/A | ||
| ROCE | 11.8% | ||
| ROIC | 8.72% | ||
| ROICexc | 8.77% | ||
| ROICexgc | 14.37% | ||
| OM | 10.44% | ||
| PM (TTM) | 3.79% | ||
| GM | 62.26% | ||
| FCFM | 0.34% |
ROA(3y)7.88%
ROA(5y)8.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)11.25%
ROIC(5y)9.55%
ROICexc(3y)11.39%
ROICexc(5y)9.92%
ROICexgc(3y)19.84%
ROICexgc(5y)16.2%
ROCE(3y)15.22%
ROCE(5y)12.92%
ROICexcg growth 3Y-8.24%
ROICexcg growth 5Y-5.93%
ROICexc growth 3Y-13.29%
ROICexc growth 5Y-9.87%
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%
F-Score5
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 181.24 | ||
| Debt/EBITDA | 4.38 | ||
| Cap/Depr | 212.98% | ||
| Cap/Sales | 7.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.61% | ||
| Profit Quality | 8.86% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.35 |
F-Score5
WACC6.72%
ROIC/WACC1.3
Cap/Depr(3y)113.62%
Cap/Depr(5y)86.42%
Cap/Sales(3y)3.68%
Cap/Sales(5y)3.07%
Profit Quality(3y)117.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.5%
EPS 3Y0.65%
EPS 5Y-7.55%
EPS Q2Q%-27.27%
EPS Next Y-8.69%
EPS Next 2Y0.51%
EPS Next 3Y8.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.53%
Revenue growth 3Y4.34%
Revenue growth 5Y-3.53%
Sales Q2Q%1.51%
Revenue Next Year5.16%
Revenue Next 2Y3.55%
Revenue Next 3Y4.72%
Revenue Next 5Y2.66%
EBIT growth 1Y-21.26%
EBIT growth 3Y-5.24%
EBIT growth 5Y-7.94%
EBIT Next Year69.44%
EBIT Next 3Y24.35%
EBIT Next 5YN/A
FCF growth 1Y-97.1%
FCF growth 3Y-76.28%
FCF growth 5Y-49.97%
OCF growth 1Y-45.4%
OCF growth 3Y-27.13%
OCF growth 5Y-7.4%