WINGSTOP INC (WING)
US9741551033 - Common Stock
Taking everything into account, WING scores 6 out of 10 in our fundamental rating. WING was compared to 133 industry peers in the Hotels, Restaurants & Leisure industry. WING scores excellent on profitability, but there are some minor concerns on its financial health. WING shows excellent growth, but is valued quite expensive already. This makes WING very considerable for growth investing!
1. Profitability
1.1 Basic Checks
WING had positive earnings in the past year.
WING had a positive operating cash flow in the past year.
Each year in the past 5 years WING has been profitable.
Each year in the past 5 years WING had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WING (20.79%) is better than 97.74% of its industry peers.
WING has a better Return On Invested Capital (31.79%) than 96.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WING is significantly above the industry average of 10.55%.
The last Return On Invested Capital (31.79%) for WING is above the 3 year average (24.61%), which is a sign of increasing profitability.
| 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
The Profit Margin of WING (17.05%) is better than 91.73% of its industry peers.
In the last couple of years the Profit Margin of WING has remained more or less at the same level.
WING's Operating Margin of 26.11% is amongst the best of the industry. WING outperforms 90.98% of its industry peers.
In the last couple of years the Operating Margin of WING has remained more or less at the same level.
WING has a Gross Margin of 85.11%. This is amongst the best in the industry. WING outperforms 97.74% of its industry peers.
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
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.
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
An Altman-Z score of 6.55 indicates that WING is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.55, WING belongs to the top of the industry, outperforming 90.98% 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.
With a decent Debt to FCF ratio value of 5.11, WING is doing good in the industry, outperforming 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 6.55 |
ROIC/WACC3.68
WACC8.64%
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 Current ratio of 1.40. This is in the better half of the industry: WING outperforms 66.17% of its industry peers.
WING has a Quick Ratio of 1.40. This is a normal value and indicates that WING is financially healthy and should not expect problems in meeting its short term obligations.
WING's Quick ratio of 1.40 is fine compared to the rest of the industry. WING outperforms 69.92% of its industry peers.
| 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.
The Earnings Per Share has been growing by 24.28% on average over the past years. This is a very strong growth
WING shows a strong growth in Revenue. In the last year, the Revenue has grown by 34.97%.
The Revenue has been growing by 24.60% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 28.43% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 22.66% on average over the next years. This is a very strong growth
EPS Next Y50.62%
EPS Next 2Y36.06%
EPS Next 3Y32.63%
EPS Next 5Y28.43%
Revenue Next Year38.8%
Revenue Next 2Y29.16%
Revenue Next 3Y25.1%
Revenue Next 5Y22.67%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 84.74, which means the current valuation is very expensive for WING.
Based on the Price/Earnings ratio, WING is valued a bit more expensive than the industry average as 62.41% of the companies are valued more cheaply.
WING's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.20.
WING is valuated quite expensively with a Price/Forward Earnings ratio of 63.06.
Based on the Price/Forward Earnings ratio, WING is valued a bit more expensive than the industry average as 61.65% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, WING is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.74 | ||
| Fwd PE | 63.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WING indicates a rather expensive valuation: WING more expensive than 81.95% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WING is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.82 | ||
| EV/EBITDA | 53.15 |
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.
WING's earnings are expected to grow with 32.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.67
PEG (5Y)3.49
EPS Next 2Y36.06%
EPS Next 3Y32.63%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, WING is not a good candidate for dividend investing.
The stock price of WING dropped by -30.78% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
WING's Dividend Yield is a higher than the industry average which is at 2.95.
With a Dividend Yield of 0.37, WING pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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.
WING has decreased its dividend recently.
Dividend Growth(5Y)-33.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WING pays out 27.25% of its income as dividend. This is a sustainable payout ratio.
DP27.25%
EPS Next 2Y36.06%
EPS Next 3Y32.63%
WINGSTOP INC
NASDAQ:WING (12/20/2024, 8:00:01 PM)
After market: 295 +4.33 (+1.49%)290.67
+0.31 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners102.93%
Inst Owner Change0.41%
Ins Owners0.29%
Ins Owner Change-0.77%
Market Cap8.49B
Analysts80.65
Price Target377.78 (29.97%)
Short Float %4.57%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Dividend Growth(5Y)-33.64%
DP27.25%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-13.17%
PT rev (3m)-12.58%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)7.82%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-2.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.88%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.74 | ||
| Fwd PE | 63.06 | ||
| P/S | 14.37 | ||
| P/FCF | 60.82 | ||
| P/OCF | 45.23 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 53.15 |
EPS(TTM)3.43
EY1.18%
EPS(NY)4.61
Fwd EY1.59%
FCF(TTM)4.78
FCFY1.64%
OCF(TTM)6.43
OCFY2.21%
SpS20.23
BVpS-15.32
TBVpS-19.23
PEG (NY)1.67
PEG (5Y)3.49
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 | 6.55 |
F-Score7
WACC8.64%
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 Y50.62%
EPS Next 2Y36.06%
EPS Next 3Y32.63%
EPS Next 5Y28.43%
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 3Y25.1%
Revenue Next 5Y22.67%
EBIT growth 1Y31.22%
EBIT growth 3Y29.47%
EBIT growth 5Y25.07%
EBIT Next Year76.89%
EBIT Next 3Y36.58%
EBIT Next 5Y27.83%
FCF growth 1Y695.5%
FCF growth 3Y10.74%
FCF growth 5Y18.35%
OCF growth 1Y291.16%
OCF growth 3Y22.89%
OCF growth 5Y25.69%