6.25 USD
-0.01 (-0.16%)
6.24 USD
-0.01 (-0.16%)
DENN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 133 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of DENN while its profitability can be described as average. DENN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- DENN had positive earnings in the past year.
- 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
- The Return On Assets of DENN (2.03%) is comparable to the rest of the industry.
- The Return On Invested Capital of DENN (7.99%) is better 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 10.34%.
| 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
- The Profit Margin of DENN (2.24%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of DENN has declined.
- With a Operating Margin value of 9.65%, DENN perfoms like the industry average, outperforming 55.64% of the companies in the same industry.
- In the last couple of years the Operating Margin of DENN has declined.
- With a decent Gross Margin value of 62.12%, DENN is doing good in the industry, outperforming 76.69% of the companies in the same industry.
- 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 | 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
- DENN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for DENN has been reduced compared to 1 year ago.
- DENN has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, DENN has an improved debt to assets ratio.
2.2 Solvency
- DENN has an Altman-Z score of 1.42. This is a bad value and indicates that DENN is not financially healthy and even has some risk of bankruptcy.
- DENN's Altman-Z score of 1.42 is in line compared to the rest of the industry. DENN outperforms 46.62% of its industry peers.
- DENN has a debt to FCF ratio of 113.41. This is a negative value and a sign of low solvency as DENN would need 113.41 years to pay back of all of its debts.
- DENN's Debt to FCF ratio of 113.41 is on the low side compared to the rest of the industry. DENN is outperformed by 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
- DENN has a Current 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 Current ratio (0.35) than 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.
- Looking at the Quick ratio, with a value of 0.33, DENN is doing worse than 78.95% of the companies in the same industry.
| 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%.
- 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)-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
- DENN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.25% yearly.
- 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.
- 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
- The Price/Earnings ratio is 16.03, which indicates a correct valuation of DENN.
- 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.
- The Price/Forward Earnings ratio is 14.73, which indicates a correct valuation of DENN.
- DENN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DENN is cheaper than 75.94% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. DENN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.03 | ||
| Fwd PE | 14.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DENN is valued a bit cheaper than 67.67% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as DENN.
| 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.