WENDY'S CO/THE (WEN) Stock Fundamental Analysis
USA - NASDAQ:WEN - US95058W1009 - Common Stock
8.93 USD
-0.05 (-0.56%)
8.8801 USD
-0.05 (-0.56%)
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 has a great profitability rating, there are quite some concerns on its financial health. WEN has a bad growth rate and is valued cheaply.
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.
In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
WEN's Return On Assets of 3.92% is in line compared to the rest of the industry. WEN outperforms 58.65% of its industry peers.
The Return On Equity of WEN (170.14%) is better than 99.25% of its industry peers.
With a Return On Invested Capital value of 6.16%, WEN perfoms like the industry average, outperforming 55.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WEN is significantly below the industry average of 10.67%.
The last Return On Invested Capital (6.16%) for WEN is above the 3 year average (5.43%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 8.63%, WEN is in the better half of the industry, outperforming 69.17% of the companies in the same industry.
WEN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.15%, WEN is in the better half of the industry, outperforming 74.44% of the companies in the same industry.
WEN's Operating Margin has been stable in the last couple of years.
WEN's Gross Margin of 63.17% is fine compared to the rest of the industry. WEN outperforms 76.69% of its industry peers.
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.
The number of shares outstanding for WEN has been reduced compared to 5 years ago.
WEN has a worse debt/assets ratio than last year.
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: 63.91% of the companies in the same industry are doing better.
WEN has a debt to FCF ratio of 13.03. This is a negative value and a sign of low solvency as WEN would need 13.03 years to pay back of all of its debts.
With a Debt to FCF ratio value of 13.03, WEN perfoms like the industry average, outperforming 51.88% of the companies in the same industry.
A Debt/Equity ratio of 28.74 is on the high side and indicates that WEN has dependencies on debt financing.
WEN's Debt to Equity ratio of 28.74 is on the low side compared to the rest of the industry. WEN is outperformed by 69.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 28.74 | ||
| Debt/FCF | 13.03 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.93
WACC6.63%
2.3 Liquidity
WEN has a Current Ratio of 1.45. This is a normal value and indicates that WEN is financially healthy and should not expect problems in meeting its short term obligations.
WEN has a better Current ratio (1.45) than 70.68% 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 73.68% 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 1.02%.
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 1.31% in the past year.
The Revenue has been growing slightly by 5.62% on average over the past years.
EPS 1Y (TTM)1.02%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%7.41%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-1.72%
3.2 Future
The Earnings Per Share is expected to grow by 7.17% on average over the next years.
WEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.19% yearly.
EPS Next Y-13.4%
EPS Next 2Y-2.99%
EPS Next 3Y1.56%
EPS Next 5Y7.17%
Revenue Next Year-3.99%
Revenue Next 2Y-0.49%
Revenue Next 3Y0.49%
Revenue Next 5Y2.19%
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
With a Price/Earnings ratio of 9.02, the valuation of WEN can be described as very reasonable.
Based on the Price/Earnings ratio, WEN is valued cheaper than 95.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of WEN to the average of the S&P500 Index (26.89), we can say WEN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.49, which indicates a very decent valuation of WEN.
Based on the Price/Forward Earnings ratio, WEN is valued cheaply inside the industry as 90.98% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.99. WEN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WEN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 97.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.62 | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
The decent profitability rating of WEN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y-2.99%
EPS Next 3Y1.56%
5. Dividend
5.1 Amount
WEN has a Yearly Dividend Yield of 6.21%, which is a nice return.
Compared to an average industry Dividend Yield of 3.90, WEN pays a better dividend. On top of this WEN pays more dividend than 96.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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
WEN pays out 92.71% 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.
DP92.71%
EPS Next 2Y-2.99%
EPS Next 3Y1.56%
8.93
-0.05 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners98.47%
Inst Owner Change-0.83%
Ins Owners8.86%
Ins Owner Change0.55%
Market Cap1.70B
Revenue(TTM)2.23B
Net Income(TTM)192.06M
Analysts63.03
Price Target11.39 (27.55%)
Short Float %13.45%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
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)-2.26%
PT rev (3m)-19.45%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-21.28%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-9.88%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-4.17%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.49 | ||
| P/S | 0.76 | ||
| P/FCF | 6.62 | ||
| P/OCF | 4.78 | ||
| P/B | 15.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.83 |
EPS(TTM)0.99
EY11.09%
EPS(NY)0.94
Fwd EY10.54%
FCF(TTM)1.35
FCFY15.09%
OCF(TTM)1.87
OCFY20.91%
SpS11.68
BVpS0.59
TBVpS-9.63
PEG (NY)N/A
PEG (5Y)0.81
Graham Number3.63
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
WACC6.63%
ROIC/WACC0.93
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)1.02%
EPS 3Y6.84%
EPS 5Y11.13%
EPS Q2Q%7.41%
EPS Next Y-13.4%
EPS Next 2Y-2.99%
EPS Next 3Y1.56%
EPS Next 5Y7.17%
Revenue 1Y (TTM)1.31%
Revenue growth 3Y5.8%
Revenue growth 5Y5.62%
Sales Q2Q%-1.72%
Revenue Next Year-3.99%
Revenue Next 2Y-0.49%
Revenue Next 3Y0.49%
Revenue Next 5Y2.19%
EBIT growth 1Y2.22%
EBIT growth 3Y4.25%
EBIT growth 5Y6.41%
EBIT Next Year37.36%
EBIT Next 3Y13.87%
EBIT Next 5Y10.94%
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 9.02 and the Price/Book (PB) ratio is 15.08.
Can you provide the financial health for WEN stock?
The financial health rating of WENDY'S CO/THE (WEN) is 3 / 10.