WINGSTOP INC (WING)
US9741551033 - Common Stock
WING gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 135 industry peers in the Hotels, Restaurants & Leisure industry. While WING belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WING is valued quite expensive, but it does show an excellent growth. This makes WING very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year WING was profitable.
WING had a positive operating cash flow in the past year.
In the past 5 years WING has always been profitable.
In the past 5 years WING always reported a positive cash flow from operatings.
1.2 Ratios
WING has a better Return On Assets (20.79%) than 97.76% of its industry peers.
WING has a better Return On Invested Capital (31.79%) than 96.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WING is significantly above the industry average of 10.46%.
The 3 year average ROIC (24.61%) for WING is below the current ROIC(31.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.79% | ||
| ROE | N/A | ||
| ROIC | 31.79% |
ROA(3y)16.06%
ROA(5y)14.31%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.61%
ROIC(5y)24.7%
1.3 Margins
WING has a better Profit Margin (17.05%) than 91.79% of its industry peers.
WING's Profit Margin has been stable in the last couple of years.
The Operating Margin of WING (26.11%) is better than 91.04% of its industry peers.
In the last couple of years the Operating Margin of WING has remained more or less at the same level.
Looking at the Gross Margin, with a value of 85.11%, WING belongs to the top of the industry, outperforming 97.76% of the companies in the same industry.
In the last couple of years the Gross Margin of WING has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.11% | ||
| PM (TTM) | 17.05% | ||
| GM | 85.11% |
OM growth 3Y5.48%
OM growth 5Y0.38%
PM growth 3Y17.66%
PM growth 5Y1.49%
GM growth 3Y2.13%
GM growth 5Y1.63%
2. Health
2.1 Basic Checks
WING has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, WING has less shares outstanding
Compared to 5 years ago, WING has about the same amount of shares outstanding.
Compared to 1 year ago, WING has a worse debt to assets ratio.
2.2 Solvency
WING has an Altman-Z score of 7.45. This indicates that WING is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of WING (7.45) is better than 92.54% of its industry peers.
WING has a debt to FCF ratio of 5.11. This is a neutral value as WING would need 5.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.11, WING is in the better half of the industry, outperforming 76.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 7.45 |
ROIC/WACC3.7
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.40 indicates that WING should not have too much problems paying its short term obligations.
WING has a better Current ratio (1.40) than 66.42% of its industry peers.
A Quick Ratio of 1.40 indicates that WING should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.40, WING is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
WING shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
WING shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.28% yearly.
Looking at the last year, WING shows a very strong growth in Revenue. The Revenue has grown by 34.97%.
WING shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.60% yearly.
EPS 1Y (TTM)40%
EPS 3Y53.39%
EPS 5Y24.28%
EPS Q2Q%27.54%
Revenue 1Y (TTM)34.97%
Revenue growth 3Y22.74%
Revenue growth 5Y24.6%
Sales Q2Q%38.76%
3.2 Future
Based on estimates for the next years, WING will show a very strong growth in Earnings Per Share. The EPS will grow by 23.63% on average per year.
WING is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.58% yearly.
EPS Next Y50.69%
EPS Next 2Y37.06%
EPS Next 3Y32.64%
EPS Next 5Y23.63%
Revenue Next Year38.74%
Revenue Next 2Y29.07%
Revenue Next 3Y24.94%
Revenue Next 5Y18.58%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 99.17, the valuation of WING can be described as expensive.
WING's Price/Earnings ratio is a bit more expensive when compared to the industry. WING is more expensive than 60.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, WING is valued quite expensively.
WING is valuated quite expensively with a Price/Forward Earnings ratio of 72.72.
63.43% of the companies in the same industry are cheaper than WING, based on the Price/Forward Earnings ratio.
WING's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 99.17 | ||
| Fwd PE | 72.72 |
4.2 Price Multiples
WING's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. WING is more expensive than 82.09% of the companies in the same industry.
WING's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.17 | ||
| EV/EBITDA | 61.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WING does not grow enough to justify the current Price/Earnings ratio.
WING has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WING's earnings are expected to grow with 32.64% in the coming years.
PEG (NY)1.96
PEG (5Y)4.09
EPS Next 2Y37.06%
EPS Next 3Y32.64%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, WING is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.83, WING pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.33, WING pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
The dividend of WING decreases each year by -33.64%.
WING has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-33.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WING pays out 27.25% of its income as dividend. This is a sustainable payout ratio.
DP27.25%
EPS Next 2Y37.06%
EPS Next 3Y32.64%
WINGSTOP INC
NASDAQ:WING (11/22/2024, 10:42:03 AM)
340.14
+1.73 (+0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 99.17 | ||
| Fwd PE | 72.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.96
PEG (5Y)4.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.79% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.11% | ||
| PM (TTM) | 17.05% | ||
| GM | 85.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3Y53.39%
EPS 5Y
EPS Q2Q%
EPS Next Y50.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)34.97%
Revenue growth 3Y22.74%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y