WINGSTOP INC (WING) Stock Fundamental Analysis
NASDAQ:WING - Nasdaq - US9741551033 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to WING. WING was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. WING has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WING is valued quite expensively, but it does show have an excellent growth rating. These ratings could make WING a good candidate for growth and quality 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.
Each year in the past 5 years WING has been profitable.
WING had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 24.72%, WING belongs to the top of the industry, outperforming 98.50% of the companies in the same industry.
WING has a better Return On Invested Capital (20.64%) than 93.23% of its industry peers.
WING had an Average Return On Invested Capital over the past 3 years of 22.46%. This is significantly above the industry average of 13.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.72% | ||
| ROE | N/A | ||
| ROIC | 20.64% |
ROA(3y)15.41%
ROA(5y)14.87%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)22.46%
ROIC(5y)23.45%
1.3 Margins
WING has a better Profit Margin (26.45%) than 98.50% of its industry peers.
In the last couple of years the Profit Margin of WING has grown nicely.
WING has a Operating Margin of 25.90%. This is amongst the best in the industry. WING outperforms 91.73% of its industry peers.
WING's Operating Margin has improved in the last couple of years.
The Gross Margin of WING (85.69%) is better than 97.74% of its industry peers.
WING's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.9% | ||
| PM (TTM) | 26.45% | ||
| GM | 85.69% |
OM growth 3Y2.28%
OM growth 5Y4.38%
PM growth 3Y4.75%
PM growth 5Y11.1%
GM growth 3Y2.72%
GM growth 5Y1.69%
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.
WING has less shares outstanding than it did 1 year ago.
WING has less shares outstanding than it did 5 years ago.
WING has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.57 indicates that WING is not in any danger for bankruptcy at the moment.
The Altman-Z score of WING (4.57) is better than 87.22% of its industry peers.
WING has a debt to FCF ratio of 13.49. This is a negative value and a sign of low solvency as WING would need 13.49 years to pay back of all of its debts.
WING has a Debt to FCF ratio (13.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 4.57 |
ROIC/WACC2.35
WACC8.77%
2.3 Liquidity
A Current Ratio of 3.56 indicates that WING has no problem at all paying its short term obligations.
WING has a better Current ratio (3.56) than 94.74% of its industry peers.
A Quick Ratio of 3.56 indicates that WING has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.56, WING belongs to the best of the industry, outperforming 96.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.56 | ||
| Quick Ratio | 3.56 |
3. Growth
3.1 Past
WING shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.47%, which is quite impressive.
Measured over the past years, WING shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.27% on average per year.
Looking at the last year, WING shows a very strong growth in Revenue. The Revenue has grown by 30.97%.
The Revenue has been growing by 25.66% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)28.47%
EPS 3Y39.82%
EPS 5Y38.27%
EPS Q2Q%1.02%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y30.36%
Revenue growth 5Y25.66%
Sales Q2Q%17.36%
3.2 Future
The Earnings Per Share is expected to grow by 21.66% on average over the next years. This is a very strong growth
WING is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.38% yearly.
EPS Next Y7.19%
EPS Next 2Y16.97%
EPS Next 3Y20.42%
EPS Next 5Y21.66%
Revenue Next Year15.74%
Revenue Next 2Y16.88%
Revenue Next 3Y17.09%
Revenue Next 5Y17.38%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
The Price/Earnings ratio is 88.45, which means the current valuation is very expensive for WING.
WING's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.45, WING is valued quite expensively.
The Price/Forward Earnings ratio is 64.83, which means the current valuation is very expensive for WING.
WING's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WING is more expensive than 64.66% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WING to the average of the S&P500 Index (21.90), we can say WING is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.45 | ||
| Fwd PE | 64.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WING is valued a bit more expensive than the industry average as 78.20% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as WING.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 102.08 | ||
| EV/EBITDA | 52.82 |
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.
The excellent profitability rating of WING may justify a higher PE ratio.
A more expensive valuation may be justified as WING's earnings are expected to grow with 20.42% in the coming years.
PEG (NY)12.3
PEG (5Y)2.31
EPS Next 2Y16.97%
EPS Next 3Y20.42%
5. Dividend
5.1 Amount
WING has a yearly dividend return of 0.31%, which is pretty low.
WING's Dividend Yield is a higher than the industry average which is at 3.60.
Compared to an average S&P500 Dividend Yield of 2.38, WING's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
The dividend of WING is nicely growing with an annual growth rate of 20.05%!
WING has been paying a dividend for over 5 years, so it has already some track record.
WING has decreased its dividend recently.
Dividend Growth(5Y)20.05%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WING pays out 17.60% of its income as dividend. This is a sustainable payout ratio.
The dividend of WING is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP17.6%
EPS Next 2Y16.97%
EPS Next 3Y20.42%
327.28
+0.99 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners109.52%
Inst Owner Change2.26%
Ins Owners0.7%
Ins Owner Change14.73%
Market Cap9.13B
Analysts82.58
Price Target354.03 (8.17%)
Short Float %6.51%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend1
Dividend Growth(5Y)20.05%
DP17.6%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)2.27%
Max EPS beat(2)12.57%
EPS beat(4)3
Avg EPS beat(4)4.11%
Min EPS beat(4)-9.66%
Max EPS beat(4)12.57%
EPS beat(8)7
Avg EPS beat(8)11.63%
EPS beat(12)11
Avg EPS beat(12)17.49%
EPS beat(16)12
Avg EPS beat(16)10.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-3.55%
Max Revenue beat(2)-1.86%
Revenue beat(4)1
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)6%
Revenue beat(8)5
Avg Revenue beat(8)1.8%
Revenue beat(12)8
Avg Revenue beat(12)1.69%
Revenue beat(16)8
Avg Revenue beat(16)-0.7%
PT rev (1m)13.09%
PT rev (3m)4.86%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-3.24%
EPS NY rev (1m)0.42%
EPS NY rev (3m)-10.99%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-3.18%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.45 | ||
| Fwd PE | 64.83 | ||
| P/S | 14.02 | ||
| P/FCF | 102.08 | ||
| P/OCF | 66.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 52.82 |
EPS(TTM)3.7
EY1.13%
EPS(NY)5.05
Fwd EY1.54%
FCF(TTM)3.21
FCFY0.98%
OCF(TTM)4.96
OCFY1.51%
SpS23.34
BVpS-25.63
TBVpS-29.48
PEG (NY)12.3
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.72% | ||
| ROE | N/A | ||
| ROCE | 27.84% | ||
| ROIC | 20.64% | ||
| ROICexc | 35.28% | ||
| ROICexgc | 50.62% | ||
| OM | 25.9% | ||
| PM (TTM) | 26.45% | ||
| GM | 85.69% | ||
| FCFM | 13.74% |
ROA(3y)15.41%
ROA(5y)14.87%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)22.46%
ROIC(5y)23.45%
ROICexc(3y)39.7%
ROICexc(5y)37%
ROICexgc(3y)90.29%
ROICexgc(5y)109.89%
ROCE(3y)30.29%
ROCE(5y)31.63%
ROICexcg growth 3Y-10.66%
ROICexcg growth 5Y-11.71%
ROICexc growth 3Y6.82%
ROICexc growth 5Y8.37%
OM growth 3Y2.28%
OM growth 5Y4.38%
PM growth 3Y4.75%
PM growth 5Y11.1%
GM growth 3Y2.72%
GM growth 5Y1.69%
F-Score6
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 13.49 | ||
| Debt/EBITDA | 6.32 | ||
| Cap/Depr | 218.72% | ||
| Cap/Sales | 7.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.39% | ||
| Profit Quality | 51.94% | ||
| Current Ratio | 3.56 | ||
| Quick Ratio | 3.56 | ||
| Altman-Z | 4.57 |
F-Score6
WACC8.77%
ROIC/WACC2.35
Cap/Depr(3y)264.83%
Cap/Depr(5y)245.57%
Cap/Sales(3y)7.96%
Cap/Sales(5y)7.24%
Profit Quality(3y)103.72%
Profit Quality(5y)123.06%
High Growth Momentum
Growth
EPS 1Y (TTM)28.47%
EPS 3Y39.82%
EPS 5Y38.27%
EPS Q2Q%1.02%
EPS Next Y7.19%
EPS Next 2Y16.97%
EPS Next 3Y20.42%
EPS Next 5Y21.66%
Revenue 1Y (TTM)30.97%
Revenue growth 3Y30.36%
Revenue growth 5Y25.66%
Sales Q2Q%17.36%
Revenue Next Year15.74%
Revenue Next 2Y16.88%
Revenue Next 3Y17.09%
Revenue Next 5Y17.38%
EBIT growth 1Y27.63%
EBIT growth 3Y33.33%
EBIT growth 5Y31.17%
EBIT Next Year43.94%
EBIT Next 3Y27.89%
EBIT Next 5Y23.53%
FCF growth 1Y28.52%
FCF growth 3Y71.75%
FCF growth 5Y45.71%
OCF growth 1Y50.97%
OCF growth 3Y47.74%
OCF growth 5Y32.51%