NASDAQ
WEN
Last Price
US $7.42
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
The Wendy's Company cash flow to debt ratio of 8.31% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
The Wendy's Company's free cash flow has decreased -7.01% from $260.92M last year to $242.62M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
The Wendy's Company's debt to equity ratio is 35.63, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
The Wendy's Company's debt has increased relative to shareholder equity from 15.78 last year to 35.63 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
The Wendy's Company has a net debt to EBITDA ratio of 7.33x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
The Wendy's Company's interest coverage ratio of 2.48 indicates that earnings with margin can cover interest payments on company debt
Financial risk - Profit margin growth.
The Wendy's Company's profit margin has decreased (-21.74%) in the last year from 8.65% to 6.77%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
The Wendy's Company's short-term assets of $618.04M exceed its short-term liabilities of $351.10M
Decreasing performance - ROA.
The Wendy's Company's return on assets of 3.02% is lower than the 5.00% threshold, indicating inefficient asset utilization
Increasing performance - Absolute return on equity.
The Wendy's Company's return on equity of 130.59%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
The Wendy's Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
The Wendy's Company had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
The Wendy's Company has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
The Wendy's Company has a free cash flow yield of 17.17%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
The Wendy's Company's yearly earnings has decreased -15.07% since last year from $194.36M to $165.07M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
The Wendy's Company's yearly revenue has decreased -3.10% since last year from $2.25G to $2.18G, signaling decreasing performance
Decreasing performance - ROIC.
ROIC 4.92% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
The Wendy's Company's 3-year revenue CAGR of 1.28% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
The Wendy's Company had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
The Wendy's Company had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
The Wendy's Company has insufficient data to evaluate this check.
Undervalued - Earnings yield.
The Wendy's Company has an earnings yield of 10.52%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
The Wendy's Company is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Undervalued - EV/EBITDA.
The Wendy's Company has an EV/EBITDA ratio of 10.02x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
The Wendy's Company has no meaningful EPS growth rate; PEG ratio cannot be computed.
Overvalued - P/B ratio.
The Wendy's Company has a price-to-book ratio of 12.22x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
The Wendy's Company has a price-to-sales ratio of 0.64x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
130.59%
Return on equity
ROIC: 4.92%
Valuation History
9.7X
Price to Earnings
EV/EBITDA: 10.0X
Cash flow
Profit margin
6.79%
(FY vs FY)
Cash flow Y/Y
2.41%
(FY vs FY)
Fair Value
Market $7.42
318.73%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.