WENDY'S CO's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. WENDY'S CO is extremely liquid. Currently, the Quick Ratio is 4.26 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||489.53||506.08|
|Net Income ($mil)||40.2||29.01|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||1197.57||371.66|
|Total Assets ($mil)||5106.55||4157.06|
|Total Debt ($mil)||2397.38||1454.09|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||35.63||33.78|
|Return on Assets||2.22||2.56|
|Return on Equity||5.12||5.94|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||364.09||366.96|
|Div / share||0.06||0.05|
|Book value / share||4.77||4.75|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5997078.0||3172546.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 31.89 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 20.03. To use another comparison, its price-to-book ratio of 1.95 indicates a discount versus the S&P 500 average of 2.67 and a significant discount versus the industry average of 9.29. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount.
|WEN 38.75||Peers 31.89||WEN 14.96||Peers 16.90|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
WEN is trading at a premium to its peers.
Discount. 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 discount to its peers.
|WEN 26.57||Peers 27.07||WEN NA||Peers 1.01|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
WEN is trading at a valuation on par with its peers.
Neutral. 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.
Ratio not available.
|WEN 1.95||Peers 9.29||WEN -11.12||Peers 159.72|
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 1.73||Peers 2.91||WEN -12.99||Peers 6.76|
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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