WENDY'S CO's gross profit margin for the fourth quarter of its fiscal year 2014 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 average liquidity. Currently, the Quick Ratio is 1.05 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 10.98% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||501.95||592.41|
|Net Income ($mil)||23.29||33.07|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||284.45||599.07|
|Total Assets ($mil)||4145.84||4363.04|
|Total Debt ($mil)||1448.14||1463.83|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||33.26||28.61|
|Return on Assets||2.92||1.04|
|Return on Equity||7.07||2.37|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||365.81||392.79|
|Div / share||0.06||0.05|
|Book value / share||4.7||4.91|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3881074.0||4686138.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 33.55 for the Hotels, Restaurants & Leisure industry and a significant premium compared to the S&P 500 average of 19.72. To use another comparison, its price-to-book ratio of 2.34 indicates a discount versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 14.63. The price-to-sales ratio is above the S&P 500 average, but well below the industry average.
|WEN 34.38||Peers 33.55||WEN 15.79||Peers 16.66|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
WEN is trading at a valuation on par with 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 29.73||Peers 27.42||WEN 5.50||Peers 2.75|
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 2.34||Peers 14.63||WEN 166.66||Peers 311.33|
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 1.95||Peers 3.06||WEN -17.15||Peers 12.75|
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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