WINGSTOP INC (WING) Stock Fundamental Analysis
NASDAQ:WING - Nasdaq - US9741551033 - Common Stock - Currency: USD
Taking everything into account, WING scores 7 out of 10 in our fundamental rating. WING was compared to 136 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 would make WING suitable 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.
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
The Return On Assets of WING (15.18%) is better than 93.38% of its industry peers.
The Return On Invested Capital of WING (19.64%) is better than 93.38% 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 15.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.18% | ||
| ROE | N/A | ||
| ROIC | 19.64% |
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 (17.37%) than 89.71% of its industry peers.
In the last couple of years the Profit Margin of WING has grown nicely.
Looking at the Operating Margin, with a value of 26.62%, WING belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
WING's Operating Margin has improved in the last couple of years.
The Gross Margin of WING (85.36%) is better than 98.53% of its industry peers.
WING's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.62% | ||
| PM (TTM) | 17.37% | ||
| GM | 85.36% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WING is creating value.
The number of shares outstanding for WING has been reduced compared to 1 year ago.
Compared to 5 years ago, WING has less shares outstanding
Compared to 1 year ago, WING has an improved debt to assets ratio.
2.2 Solvency
WING has an Altman-Z score of 3.47. This indicates that WING is financially healthy and has little risk of bankruptcy at the moment.
WING has a better Altman-Z score (3.47) than 83.09% of its industry peers.
The Debt to FCF ratio of WING is 11.41, which is on the high side as it means it would take WING, 11.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.41, WING is in line with its industry, outperforming 55.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.41 | ||
| Altman-Z | 3.47 |
ROIC/WACC2.4
WACC8.2%
2.3 Liquidity
A Current Ratio of 4.52 indicates that WING has no problem at all paying its short term obligations.
The Current ratio of WING (4.52) is better than 97.79% of its industry peers.
A Quick Ratio of 4.52 indicates that WING has no problem at all paying its short term obligations.
The Quick ratio of WING (4.52) is better than 97.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 4.52 |
3. Growth
3.1 Past
WING shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.19%, which is quite impressive.
WING shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.27% yearly.
Looking at the last year, WING shows a very strong growth in Revenue. The Revenue has grown by 36.03%.
The Revenue has been growing by 25.66% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)48.19%
EPS 3Y39.82%
EPS 5Y38.27%
EPS Q2Q%40.63%
Revenue 1Y (TTM)36.03%
Revenue growth 3Y30.36%
Revenue growth 5Y25.66%
Sales Q2Q%27.36%
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 20.42% on average per year.
Based on estimates for the next years, WING will show a quite strong growth in Revenue. The Revenue will grow by 17.56% on average per year.
EPS Next Y3.52%
EPS Next 2Y15.66%
EPS Next 3Y19.83%
EPS Next 5Y20.42%
Revenue Next Year16.89%
Revenue Next 2Y17.1%
Revenue Next 3Y16.9%
Revenue Next 5Y17.56%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 57.13, which means the current valuation is very expensive for WING.
WING's Price/Earnings ratio is in line with the industry average.
WING is valuated expensively when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
WING is valuated quite expensively with a Price/Forward Earnings ratio of 55.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WING is on the same level as its industry peers.
WING's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.13 | ||
| Fwd PE | 55.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WING is valued a bit more expensive than 75.00% of the companies in the same industry.
WING's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.66 | ||
| EV/EBITDA | 37.59 |
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 19.83% in the coming years.
PEG (NY)16.23
PEG (5Y)1.49
EPS Next 2Y15.66%
EPS Next 3Y19.83%
5. Dividend
5.1 Amount
WING has a yearly dividend return of 0.49%, which is pretty low.
In the last 3 months the price of WING has falen by -24.66%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WING's Dividend Yield is a higher than the industry average which is at 3.92.
With a Dividend Yield of 0.49, WING pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 26.55% 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.
DP26.55%
EPS Next 2Y15.66%
EPS Next 3Y19.83%
210.82
-8.02 (-3.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners104.14%
Inst Owner Change0.35%
Ins Owners0.29%
Ins Owner Change13.5%
Market Cap5.88B
Analysts82.5
Price Target325.7 (54.49%)
Short Float %6.71%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend1
Dividend Growth(5Y)20.05%
DP26.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.69%
Min EPS beat(2)-9.66%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)7.66%
Min EPS beat(4)-9.66%
Max EPS beat(4)26.78%
EPS beat(8)7
Avg EPS beat(8)13.63%
EPS beat(12)10
Avg EPS beat(12)15.09%
EPS beat(16)12
Avg EPS beat(16)11.78%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-3.55%
Max Revenue beat(2)-1.43%
Revenue beat(4)2
Avg Revenue beat(4)1.61%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)6%
Revenue beat(8)6
Avg Revenue beat(8)2.93%
Revenue beat(12)8
Avg Revenue beat(12)0.79%
Revenue beat(16)9
Avg Revenue beat(16)-0.54%
PT rev (1m)-3.53%
PT rev (3m)-14.13%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-21.43%
EPS NY rev (1m)-14.04%
EPS NY rev (3m)-17.13%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-3.25%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.13 | ||
| Fwd PE | 55.19 | ||
| P/S | 9.4 | ||
| P/FCF | 55.66 | ||
| P/OCF | 37.32 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.59 |
EPS(TTM)3.69
EY1.75%
EPS(NY)3.82
Fwd EY1.81%
FCF(TTM)3.79
FCFY1.8%
OCF(TTM)5.65
OCFY2.68%
SpS22.43
BVpS-24.21
TBVpS-28.3
PEG (NY)16.23
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.18% | ||
| ROE | N/A | ||
| ROCE | 26.5% | ||
| ROIC | 19.64% | ||
| ROICexc | 39.48% | ||
| ROICexgc | 62.07% | ||
| OM | 26.62% | ||
| PM (TTM) | 17.37% | ||
| GM | 85.36% | ||
| FCFM | 16.89% |
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-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 11.41 | ||
| Debt/EBITDA | 6.48 | ||
| Cap/Depr | 266.44% | ||
| Cap/Sales | 8.3% | ||
| Interest Coverage | 7.34 | ||
| Cash Conversion | 84.69% | ||
| Profit Quality | 97.21% | ||
| Current Ratio | 4.52 | ||
| Quick Ratio | 4.52 | ||
| Altman-Z | 3.47 |
F-Score7
WACC8.2%
ROIC/WACC2.4
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)48.19%
EPS 3Y39.82%
EPS 5Y38.27%
EPS Q2Q%40.63%
EPS Next Y3.52%
EPS Next 2Y15.66%
EPS Next 3Y19.83%
EPS Next 5Y20.42%
Revenue 1Y (TTM)36.03%
Revenue growth 3Y30.36%
Revenue growth 5Y25.66%
Sales Q2Q%27.36%
Revenue Next Year16.89%
Revenue Next 2Y17.1%
Revenue Next 3Y16.9%
Revenue Next 5Y17.56%
EBIT growth 1Y41.3%
EBIT growth 3Y33.33%
EBIT growth 5Y31.17%
EBIT Next Year45.63%
EBIT Next 3Y26.86%
EBIT Next 5Y21.94%
FCF growth 1Y30.85%
FCF growth 3Y71.75%
FCF growth 5Y45.71%
OCF growth 1Y29.61%
OCF growth 3Y47.74%
OCF growth 5Y32.51%