8.65 USD
+0.27 (+3.22%)
8.6603 USD
+0.01 (+0.12%)
Taking everything into account, WEN scores 5 out of 10 in our fundamental rating. WEN was compared to 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 is cheap, but on the other hand it scores bad on growth. Finally WEN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WEN had positive earnings in the past year.
WEN had a positive operating cash flow in the past year.
In the past 5 years WEN has always been profitable.
In the past 5 years WEN always reported a positive cash flow from operatings.
1.2 Ratios
WEN has a Return On Assets (3.74%) which is in line with its industry peers.
WEN's Return On Equity of 170.42% is amongst the best of the industry. WEN outperforms 98.50% of its industry peers.
The Return On Invested Capital of WEN (6.67%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for WEN is below the industry average of 10.34%.
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
With a decent Profit Margin value of 8.43%, WEN is doing good in the industry, outperforming 69.92% of the companies in the same industry.
In the last couple of years the Profit Margin of WEN has grown nicely.
WEN's Operating Margin of 17.49% is fine compared to the rest of the industry. WEN outperforms 75.94% of its industry peers.
In the last couple of years the Operating Margin of WEN has remained more or less at the same level.
WEN has a better Gross Margin (62.41%) 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.
WEN has less shares outstanding than it did 1 year ago.
WEN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WEN has a worse debt to assets ratio.
2.2 Solvency
WEN has an Altman-Z score of 0.99. 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 0.99 is on the low side compared to the rest of the industry. WEN is outperformed by 64.66% of its industry peers.
WEN has a debt to FCF ratio of 14.24. This is a negative value and a sign of low solvency as WEN would need 14.24 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.24, WEN perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
WEN has a Debt/Equity ratio of 26.89. This is a high value indicating a heavy dependency on external financing.
WEN's Debt to Equity ratio of 26.89 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 | 26.89 | ||
| Debt/FCF | 14.24 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.97
WACC6.86%
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.
With a Current ratio value of 0.81, WEN perfoms like the industry average, outperforming 43.61% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that WEN may have some problems paying its short term obligations.
WEN's Quick ratio of 0.80 is in line compared to the rest of the industry. WEN outperforms 45.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.08% over the past year.
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 decreased by -0.21% in the past year.
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
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
The Price/Earnings ratio is 8.83, which indicates a very decent valuation of WEN.
WEN's Price/Earnings ratio is rather cheap when compared to the industry. WEN is cheaper than 95.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, WEN is valued rather cheaply.
The Price/Forward Earnings ratio is 9.78, which indicates a very decent valuation of WEN.
Based on the Price/Forward Earnings ratio, WEN is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
WEN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.83 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
WEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WEN is cheaper than 75.94% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WEN indicates a rather cheap valuation: WEN is cheaper than 96.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.92 | ||
| EV/EBITDA | 8.64 |
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)0.79
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
5. Dividend
5.1 Amount
WEN has a Yearly Dividend Yield of 6.68%, which is a nice return.
WEN's Dividend Yield is rather good when compared to the industry average which is at 6.32. WEN pays more dividend than 97.74% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, WEN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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.
WEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.75%
EPS Next 2Y-5.97%
EPS Next 3Y-1.96%
8.65
+0.27 (+3.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners90.93%
Inst Owner Change0.13%
Ins Owners8.88%
Ins Owner Change0.22%
Market Cap1.65B
Revenue(TTM)2.21B
Net Income(TTM)186.09M
Analysts56.11
Price Target10.04 (16.07%)
Short Float %15.41%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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)-0.44%
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 | 8.83 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.75 | ||
| P/FCF | 6.92 | ||
| P/OCF | 4.79 | ||
| P/B | 15.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.64 |
EPS(TTM)0.98
EY11.33%
EPS(NY)0.88
Fwd EY10.22%
FCF(TTM)1.25
FCFY14.44%
OCF(TTM)1.81
OCFY20.89%
SpS11.6
BVpS0.57
TBVpS-9.68
PEG (NY)N/A
PEG (5Y)0.79
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 | 0.99 |
F-Score6
WACC6.86%
ROIC/WACC0.97
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 8.83 and the Price/Book (PB) ratio is 15.08.
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%.