8.38 USD
+0.16 (+1.95%)
8.4 USD
+0.02 (+0.24%)
Overall WEN gets a fundamental rating of 5 out of 10. We evaluated WEN against 133 industry peers in the Hotels, Restaurants & Leisure industry. While WEN belongs to the best of the industry regarding profitability, there are concerns on its financial health. WEN is valued quite cheap, but it does not seem to be growing. WEN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year WEN was profitable.
In the past year WEN had a positive cash flow from operations.
WEN had positive earnings in each of the past 5 years.
In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WEN (3.74%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 170.42%, WEN belongs to the top of the industry, outperforming 98.50% of the companies in the same industry.
WEN has a Return On Invested Capital (6.67%) which is in line with its industry peers.
WEN had an Average Return On Invested Capital over the past 3 years of 5.43%. This is below the industry average of 10.39%.
The 3 year average ROIC (5.43%) for WEN is below the current ROIC(6.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 170.42% | ||
| ROIC | 6.67% |
ROA(3y)3.68%
ROA(5y)3.46%
ROE(3y)59.67%
ROE(5y)49.27%
ROIC(3y)5.43%
ROIC(5y)5.17%
1.3 Margins
The Profit Margin of WEN (8.43%) is better than 69.92% of its industry peers.
In the last couple of years the Profit Margin of WEN has grown nicely.
Looking at the Operating Margin, with a value of 17.49%, WEN is in the better half of the industry, outperforming 75.94% of the companies in the same industry.
WEN's Operating Margin has been stable in the last couple of years.
The Gross Margin of WEN (62.41%) is better than 78.20% of its industry peers.
WEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.49% | ||
| PM (TTM) | 8.43% | ||
| GM | 62.41% |
OM growth 3Y-1.47%
OM growth 5Y0.74%
PM growth 3Y-6.44%
PM growth 5Y1.55%
GM growth 3Y-1.04%
GM growth 5Y0.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WEN is destroying value.
The number of shares outstanding for WEN has been reduced compared to 1 year ago.
WEN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WEN is higher compared to a year ago.
2.2 Solvency
WEN has an Altman-Z score of 0.98. This is a bad value and indicates that WEN is not financially healthy and even has some risk of bankruptcy.
WEN's Altman-Z score of 0.98 is on the low side compared to the rest of the industry. WEN is outperformed by 64.66% of its industry peers.
The Debt to FCF ratio of WEN is 14.24, which is on the high side as it means it would take WEN, 14.24 years of fcf income to pay off all of its debts.
WEN has a Debt to FCF ratio (14.24) which is comparable to the rest of the industry.
WEN has a Debt/Equity ratio of 26.89. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 26.89, WEN is doing worse than 69.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.98
WACC6.84%
2.3 Liquidity
WEN has a Current Ratio of 0.81. This is a bad value and indicates that WEN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of WEN (0.81) is comparable to the rest of the industry.
WEN has a Quick Ratio of 0.81. This is a bad value and indicates that WEN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.80, WEN is in line with its industry, outperforming 45.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
WEN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.08%.
WEN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.13% yearly.
WEN shows a decrease in Revenue. In the last year, the revenue decreased by -0.21%.
The Revenue has been growing slightly by 5.62% on average over the past years.
EPS 1Y (TTM)2.08%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%-4%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
3.2 Future
WEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.27% yearly.
Based on estimates for the next years, WEN will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y-11.76%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
EPS Next 5Y5.27%
Revenue Next Year-2.84%
Revenue Next 2Y0.07%
Revenue Next 3Y0.49%
Revenue Next 5Y2.15%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.55 indicates a reasonable valuation of WEN.
Compared to the rest of the industry, the Price/Earnings ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 96.24% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.00. WEN is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.48, the valuation of WEN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 90.23% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WEN to the average of the S&P500 Index (23.70), we can say WEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 9.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than 75.94% of the companies in the same industry.
96.24% of the companies in the same industry are more expensive than WEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.71 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
5. Dividend
5.1 Amount
WEN has a Yearly Dividend Yield of 6.72%, which is a nice return.
Compared to an average industry Dividend Yield of 1.94, WEN pays a better dividend. On top of this WEN pays more dividend than 98.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
5.2 History
The dividend of WEN is nicely growing with an annual growth rate of 32.37%!
WEN has paid a dividend for at least 10 years, which is a reliable track record.
WEN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)32.37%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
WEN pays out 82.75% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP82.75%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
8.38
+0.16 (+1.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.93%
Inst Owner Change0.02%
Ins Owners8.88%
Ins Owner Change0.19%
Market Cap1.60B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.67
Price Target10.04 (19.81%)
Short Float %15.41%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
Yearly Dividend1
Dividend Growth(5Y)32.37%
DP82.75%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.95%
Min EPS beat(2)12.55%
Max EPS beat(2)21.35%
EPS beat(4)3
Avg EPS beat(4)8.99%
Min EPS beat(4)-0.22%
Max EPS beat(4)21.35%
EPS beat(8)4
Avg EPS beat(8)3.46%
EPS beat(12)8
Avg EPS beat(12)3.73%
EPS beat(16)11
Avg EPS beat(16)3.25%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-0.56%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)0.19%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)1.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.68%
Revenue beat(12)4
Avg Revenue beat(12)-0.8%
Revenue beat(16)5
Avg Revenue beat(16)-0.87%
PT rev (1m)-2.16%
PT rev (3m)-11.81%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-18.23%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 9.48 | ||
| P/S | 0.72 | ||
| P/FCF | 6.71 | ||
| P/OCF | 4.64 | ||
| P/B | 14.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.55 |
EPS(TTM)0.98
EY11.69%
EPS(NY)0.88
Fwd EY10.55%
FCF(TTM)1.25
FCFY14.91%
OCF(TTM)1.81
OCFY21.56%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.77
Graham Number3.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.74% | ||
| ROE | 170.42% | ||
| ROCE | 9.23% | ||
| ROIC | 6.67% | ||
| ROICexc | 7.17% | ||
| ROICexgc | 14.39% | ||
| OM | 17.49% | ||
| PM (TTM) | 8.43% | ||
| GM | 62.41% | ||
| FCFM | 10.77% |
ROA(3y)3.68%
ROA(5y)3.46%
ROE(3y)59.67%
ROE(5y)49.27%
ROIC(3y)5.43%
ROIC(5y)5.17%
ROICexc(3y)6.13%
ROICexc(5y)5.72%
ROICexgc(3y)11.48%
ROICexgc(5y)10.67%
ROCE(3y)7.51%
ROCE(5y)7.16%
ROICexgc growth 3Y6.48%
ROICexgc growth 5Y7.52%
ROICexc growth 3Y6.19%
ROICexc growth 5Y7.2%
OM growth 3Y-1.47%
OM growth 5Y0.74%
PM growth 3Y-6.44%
PM growth 5Y1.55%
GM growth 3Y-1.04%
GM growth 5Y0.27%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 65.2% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.65% | ||
| Profit Quality | 127.8% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.98 |
F-Score6
WACC6.84%
ROIC/WACC0.98
Cap/Depr(3y)59.99%
Cap/Depr(5y)58.81%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.05%
Profit Quality(3y)119.97%
Profit Quality(5y)135.28%
High Growth Momentum
Growth
EPS 1Y (TTM)2.08%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%-4%
EPS Next Y-11.76%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
EPS Next 5Y5.27%
Revenue 1Y (TTM)-0.21%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
Revenue Next Year-2.84%
Revenue Next 2Y0.07%
Revenue Next 3Y0.49%
Revenue Next 5Y2.15%
EBIT growth 1Y7%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year38.87%
EBIT Next 3Y12.3%
EBIT Next 5Y9.99%
FCF growth 1Y-6.95%
FCF growth 3Y-0.86%
FCF growth 5Y4.01%
OCF growth 1Y-0.84%
OCF growth 3Y0.91%
OCF growth 5Y4.22%
WENDY'S CO/THE / WEN FAQ
What is the fundamental rating for WEN stock?
ChartMill assigns a fundamental rating of 5 / 10 to WEN.
What is the valuation status for WEN stock?
ChartMill assigns a valuation rating of 7 / 10 to WENDY'S CO/THE (WEN). This can be considered as Undervalued.
How profitable is WENDY'S CO/THE (WEN) stock?
WENDY'S CO/THE (WEN) has a profitability rating of 7 / 10.
What are the PE and PB ratios of WENDY'S CO/THE (WEN) stock?
The Price/Earnings (PE) ratio for WENDY'S CO/THE (WEN) is 8.55 and the Price/Book (PB) ratio is 14.61.
How sustainable is the dividend of WENDY'S CO/THE (WEN) stock?
The dividend rating of WENDY'S CO/THE (WEN) is 7 / 10 and the dividend payout ratio is 82.75%.