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. While WING belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. WING is valued quite expensively, but it does show have an excellent growth rating. With these ratings, WING could be worth investigating further 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.
Each year in the past 5 years WING had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.79%, WING belongs to the top of the industry, outperforming 97.71% of the companies in the same industry.
WING has a better Return On Invested Capital (31.79%) than 96.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WING is significantly above the industry average of 10.63%.
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 90.84% of its industry peers.
In the last couple of years the Profit Margin of WING has remained more or less at the same level.
The Operating Margin of WING (26.11%) is better than 90.84% 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 98.47% of the companies in the same industry.
WING's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WING is creating value.
Compared to 1 year ago, WING has less shares outstanding
The number of shares outstanding for WING remains at a similar level compared to 5 years ago.
Compared to 1 year ago, WING has a worse debt to assets ratio.
2.2 Solvency
WING has an Altman-Z score of 6.82. This indicates that WING is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.82, WING belongs to the best of the industry, outperforming 90.84% of the companies in the same industry.
The Debt to FCF ratio of WING is 5.11, which is a neutral value as it means it would take WING, 5.11 years of fcf income to pay off all of its debts.
WING has a better Debt to FCF ratio (5.11) than 75.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 6.82 |
ROIC/WACC3.68
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.40 indicates that WING should not have too much problems paying its short term obligations.
The Current ratio of WING (1.40) is better than 67.18% 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 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.00% over the past year.
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 28.69% on average per year.
WING is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.68% yearly.
EPS Next Y50.52%
EPS Next 2Y35.07%
EPS Next 3Y32.27%
EPS Next 5Y28.69%
Revenue Next Year38.8%
Revenue Next 2Y29.16%
Revenue Next 3Y25.26%
Revenue Next 5Y22.68%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 88.90, WING can be considered very expensive at the moment.
WING's Price/Earnings ratio is a bit more expensive when compared to the industry. WING is more expensive than 61.83% of the companies in the same industry.
WING's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.09.
Based on the Price/Forward Earnings ratio of 67.12, the valuation of WING can be described as expensive.
Based on the Price/Forward Earnings ratio, WING is valued a bit more expensive than the industry average as 63.36% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 94.77. WING is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.9 | ||
| Fwd PE | 67.12 |
4.2 Price Multiples
WING's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. WING is more expensive than 81.68% 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 | 63.8 | ||
| EV/EBITDA | 55.58 |
4.3 Compensation for Growth
WING's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 32.27% in the coming years.
PEG (NY)1.76
PEG (5Y)3.66
EPS Next 2Y35.07%
EPS Next 3Y32.27%
5. Dividend
5.1 Amount
WING has a yearly dividend return of 0.35%, which is pretty low.
Compared to an average industry Dividend Yield of 3.16, WING pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, WING's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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.
The dividend of WING decreased recently.
Dividend Growth(5Y)-33.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
27.25% of the earnings are spent on dividend by WING. This is a low number and sustainable payout ratio.
DP27.25%
EPS Next 2Y35.07%
EPS Next 3Y32.27%
WINGSTOP INC
NASDAQ:WING (2/7/2025, 8:03:39 PM)
After market: 305.5 +0.58 (+0.19%)304.92
-3.22 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners102.93%
Inst Owner Change-16.71%
Ins Owners0.29%
Ins Owner Change0.04%
Market Cap8.91B
Analysts81.29
Price Target374.02 (22.66%)
Short Float %5.8%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.84
Dividend Growth(5Y)-33.64%
DP27.25%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.79%
Min EPS beat(2)-9.66%
Max EPS beat(2)11.24%
EPS beat(4)3
Avg EPS beat(4)9.63%
Min EPS beat(4)-9.66%
Max EPS beat(4)26.78%
EPS beat(8)7
Avg EPS beat(8)18.96%
EPS beat(12)9
Avg EPS beat(12)12.8%
EPS beat(16)11
Avg EPS beat(16)-0.49%
Revenue beat(2)1
Avg Revenue beat(2)2.28%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)6%
Revenue beat(4)3
Avg Revenue beat(4)3.41%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)6%
Revenue beat(8)7
Avg Revenue beat(8)3.62%
Revenue beat(12)8
Avg Revenue beat(12)0.75%
Revenue beat(16)9
Avg Revenue beat(16)-0.52%
PT rev (1m)-1.39%
PT rev (3m)-14.03%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)6.07%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-2.16%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)7.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.9 | ||
| Fwd PE | 67.12 | ||
| P/S | 15.07 | ||
| P/FCF | 63.8 | ||
| P/OCF | 47.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 55.58 |
EPS(TTM)3.43
EY1.12%
EPS(NY)4.54
Fwd EY1.49%
FCF(TTM)4.78
FCFY1.57%
OCF(TTM)6.43
OCFY2.11%
SpS20.23
BVpS-15.32
TBVpS-19.23
PEG (NY)1.76
PEG (5Y)3.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.79% | ||
| ROE | N/A | ||
| ROCE | 42.18% | ||
| ROIC | 31.79% | ||
| ROICexc | 41.26% | ||
| ROICexgc | 69.37% | ||
| OM | 26.11% | ||
| PM (TTM) | 17.05% | ||
| GM | 85.11% | ||
| FCFM | 23.62% |
ROA(3y)16.06%
ROA(5y)14.31%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.61%
ROIC(5y)24.7%
ROICexc(3y)37.97%
ROICexc(5y)34.96%
ROICexgc(3y)101.25%
ROICexgc(5y)123.91%
ROCE(3y)32.65%
ROCE(5y)32.77%
ROICexcg growth 3Y-20.05%
ROICexcg growth 5Y-33.19%
ROICexc growth 3Y6.39%
ROICexc growth 5Y7.31%
OM growth 3Y5.48%
OM growth 5Y0.38%
PM growth 3Y17.66%
PM growth 5Y1.49%
GM growth 3Y2.13%
GM growth 5Y1.63%
F-Score7
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.11 | ||
| Debt/EBITDA | 4.16 | ||
| Cap/Depr | 278.5% | ||
| Cap/Sales | 8.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.4% | ||
| Profit Quality | 138.53% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 6.82 |
F-Score7
WACC8.63%
ROIC/WACC3.68
Cap/Depr(3y)293.65%
Cap/Depr(5y)274.36%
Cap/Sales(3y)8.5%
Cap/Sales(5y)7.84%
Profit Quality(3y)87.6%
Profit Quality(5y)119.32%
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3Y53.39%
EPS 5Y24.28%
EPS Q2Q%27.54%
EPS Next Y50.52%
EPS Next 2Y35.07%
EPS Next 3Y32.27%
EPS Next 5Y28.69%
Revenue 1Y (TTM)34.97%
Revenue growth 3Y22.74%
Revenue growth 5Y24.6%
Sales Q2Q%38.76%
Revenue Next Year38.8%
Revenue Next 2Y29.16%
Revenue Next 3Y25.26%
Revenue Next 5Y22.68%
EBIT growth 1Y31.22%
EBIT growth 3Y29.47%
EBIT growth 5Y25.07%
EBIT Next Year76.67%
EBIT Next 3Y36.56%
EBIT Next 5Y28.3%
FCF growth 1Y695.5%
FCF growth 3Y10.74%
FCF growth 5Y18.35%
OCF growth 1Y291.16%
OCF growth 3Y22.89%
OCF growth 5Y25.69%