WENDY'S CO's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. WENDY'S CO has weak liquidity. Currently, the Quick Ratio is 0.83 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 59.19% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||464.63||496.67|
|Net Income ($mil)||7.58||22.83|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||175.7||342.45|
|Total Assets ($mil)||4080.78||4179.46|
|Total Debt ($mil)||2403.13||1446.55|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||37.26||33.02|
|Return on Assets||2.41||3.13|
|Return on Equity||10.57||7.33|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||273.33||365.94|
|Div / share||0.06||0.05|
|Book value / share||2.58||4.72|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4163356.0||5997078.0|
BUY. WENDY'S CO's P/E ratio indicates a significant premium compared to an average of 30.36 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 22.01. Conducting a second comparison, its price-to-book ratio of 4.07 indicates a premium versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 10.18. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.
|WEN 50.05||Peers 30.36||WEN 16.64||Peers 15.49|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
WEN is trading at a significant premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
WEN is trading at a valuation on par to its peers.
|WEN 29.19||Peers 26.81||WEN 16.04||Peers 7.87|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
WEN is trading at a premium to its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
WEN trades at a significant premium to its peers.
|WEN 4.07||Peers 10.18||WEN -36.37||Peers 8.40|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
WEN is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, WEN is expected to significantly trail its peers on the basis of its earnings growth rate.
|WEN 1.51||Peers 3.02||WEN -9.31||Peers 6.59|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
WEN is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
WEN significantly trails its peers on the basis of sales growth
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