WENDY'S CO/THE (WEN) Stock Fundamental Analysis
USA - NASDAQ:WEN - US95058W1009 - Common Stock
8.54 USD
-0.43 (-4.79%)
8.5585 USD
+0.02 (+0.22%)
WEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. WEN has an excellent profitability rating, but there are concerns on its financial health. WEN is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
WEN had positive earnings in the past year.
In the past year WEN had a positive cash flow from operations.
Each year in the past 5 years WEN has been profitable.
Each year in the past 5 years WEN had a positive operating cash flow.
1.2 Ratios
WEN's Return On Assets of 3.92% is in line compared to the rest of the industry. WEN outperforms 59.09% of its industry peers.
WEN has a Return On Equity of 170.14%. This is amongst the best in the industry. WEN outperforms 98.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.16%, WEN is in line with its industry, outperforming 56.06% of the companies in the same industry.
WEN had an Average Return On Invested Capital over the past 3 years of 5.43%. This is significantly below the industry average of 10.94%.
The 3 year average ROIC (5.43%) for WEN is below the current ROIC(6.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 170.14% | ||
| ROIC | 6.16% |
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 (8.63%) is better than 68.94% of its industry peers.
WEN's Profit Margin has improved in the last couple of years.
The Operating Margin of WEN (17.15%) is better than 74.24% of its industry peers.
In the last couple of years the Operating Margin of WEN has remained more or less at the same level.
With a decent Gross Margin value of 63.17%, WEN is doing good in the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Gross Margin of WEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.15% | ||
| PM (TTM) | 8.63% | ||
| GM | 63.17% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WEN is destroying value.
The number of shares outstanding for WEN has been reduced compared to 1 year ago.
Compared to 5 years ago, WEN has less shares outstanding
The debt/assets ratio for WEN is higher compared to a year ago.
2.2 Solvency
WEN has an Altman-Z score of 1.09. This is a bad value and indicates that WEN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.09, WEN is not doing good in the industry: 62.88% of the companies in the same industry are doing better.
The Debt to FCF ratio of WEN is 13.03, which is on the high side as it means it would take WEN, 13.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.03, WEN is in line with its industry, outperforming 50.76% of the companies in the same industry.
WEN has a Debt/Equity ratio of 28.74. This is a high value indicating a heavy dependency on external financing.
WEN has a Debt to Equity ratio of 28.74. This is in the lower half of the industry: WEN underperforms 68.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.74 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.95
WACC6.45%
2.3 Liquidity
A Current Ratio of 1.45 indicates that WEN should not have too much problems paying its short term obligations.
The Current ratio of WEN (1.45) is better than 71.97% of its industry peers.
A Quick Ratio of 1.43 indicates that WEN should not have too much problems paying its short term obligations.
The Quick ratio of WEN (1.43) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.43 |
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%.
Measured over the past years, WEN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.13% on average per year.
The Revenue has been growing slightly by 2.98% in the past year.
WEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.62% yearly.
EPS 1Y (TTM)2.08%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%-4%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
3.2 Future
The Earnings Per Share is expected to grow by 7.02% on average over the next years.
The Revenue is expected to grow by 2.17% on average over the next years.
EPS Next Y-13.58%
EPS Next 2Y-3.3%
EPS Next 3Y1.43%
EPS Next 5Y7.02%
Revenue Next Year-4.04%
Revenue Next 2Y-0.58%
Revenue Next 3Y0.44%
Revenue Next 5Y2.17%
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 decreasing.
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
WEN is valuated reasonably with a Price/Earnings ratio of 8.71.
Based on the Price/Earnings ratio, WEN is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
WEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.06.
The Price/Forward Earnings ratio is 9.13, which indicates a very decent valuation of WEN.
Based on the Price/Forward Earnings ratio, WEN is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WEN to the average of the S&P500 Index (32.73), we can say WEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
94.70% 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 | 6.34 | ||
| EV/EBITDA | 8.82 |
4.3 Compensation for Growth
WEN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y-3.3%
EPS Next 3Y1.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.56%, WEN is a good candidate for dividend investing.
WEN's Dividend Yield is rather good when compared to the industry average which is at 4.43. WEN pays more dividend than 96.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
5.2 History
On average, the dividend of WEN grows each year by 32.37%, which is quite nice.
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
92.71% of the earnings are spent on dividend by WEN. This is not a sustainable payout ratio.
WEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP92.71%
EPS Next 2Y-3.3%
EPS Next 3Y1.43%
8.54
-0.43 (-4.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners98.47%
Inst Owner Change-3.92%
Ins Owners8.86%
Ins Owner Change0.54%
Market Cap1.63B
Revenue(TTM)2.25B
Net Income(TTM)192.06M
Analysts56.76
Price Target11.01 (28.92%)
Short Float %13.45%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.56% |
Yearly Dividend1
Dividend Growth(5Y)32.37%
DP92.71%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.16%
Min EPS beat(2)-0.22%
Max EPS beat(2)12.55%
EPS beat(4)2
Avg EPS beat(4)3.16%
Min EPS beat(4)-1.97%
Max EPS beat(4)12.55%
EPS beat(8)4
Avg EPS beat(8)1.42%
EPS beat(12)8
Avg EPS beat(12)2.26%
EPS beat(16)11
Avg EPS beat(16)2.12%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)-0.56%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.35%
Max Revenue beat(4)0.88%
Revenue beat(8)2
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-1.13%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)-3.32%
PT rev (3m)-17.43%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)-21.04%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-10.07%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 9.13 | ||
| P/S | 0.73 | ||
| P/FCF | 6.34 | ||
| P/OCF | 4.57 | ||
| P/B | 14.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.82 |
EPS(TTM)0.98
EY11.48%
EPS(NY)0.94
Fwd EY10.95%
FCF(TTM)1.35
FCFY15.78%
OCF(TTM)1.87
OCFY21.87%
SpS11.68
BVpS0.59
TBVpS-9.63
PEG (NY)N/A
PEG (5Y)0.78
Graham Number3.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.92% | ||
| ROE | 170.14% | ||
| ROCE | 8.52% | ||
| ROIC | 6.16% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 12.26% | ||
| OM | 17.15% | ||
| PM (TTM) | 8.63% | ||
| GM | 63.17% | ||
| FCFM | 11.54% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.74 | ||
| Debt/FCF | 13.03 | ||
| Debt/EBITDA | 5.99 | ||
| Cap/Depr | 62% | ||
| Cap/Sales | 4.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.75% | ||
| Profit Quality | 133.75% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 1.09 |
F-Score6
WACC6.45%
ROIC/WACC0.95
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-13.58%
EPS Next 2Y-3.3%
EPS Next 3Y1.43%
EPS Next 5Y7.02%
Revenue 1Y (TTM)2.98%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-3.04%
Revenue Next Year-4.04%
Revenue Next 2Y-0.58%
Revenue Next 3Y0.44%
Revenue Next 5Y2.17%
EBIT growth 1Y2.22%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year37.36%
EBIT Next 3Y13.87%
EBIT Next 5Y10.86%
FCF growth 1Y17.59%
FCF growth 3Y-0.86%
FCF growth 5Y4.01%
OCF growth 1Y17.36%
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 of WENDY'S CO/THE (WEN) stock?
ChartMill assigns a valuation rating of 7 / 10 to WENDY'S CO/THE (WEN). This can be considered as Undervalued.
Can you provide the profitability details for WENDY'S CO/THE?
WENDY'S CO/THE (WEN) has a profitability rating of 7 / 10.
What is the valuation of WENDY'S CO/THE based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WENDY'S CO/THE (WEN) is 8.71 and the Price/Book (PB) ratio is 14.42.
Can you provide the financial health for WEN stock?
The financial health rating of WENDY'S CO/THE (WEN) is 3 / 10.