The Wendy's Co.Find Ratings Reports
WENDY'S CO's gross profit margin for the first quarter of its fiscal year 2018 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. WENDY'S CO has average liquidity. Currently, the Quick Ratio is 1.41 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.
During the same period, stockholders' equity ("net worth") has decreased by 11.78% 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||Q1 FY18||Q1 FY17|
|Net Sales ($mil)||380.56||285.82|
|Net Income ($mil)||20.16||22.34|
|Balance Sheet||Q1 FY18||Q1 FY17|
|Cash & Equiv. ($mil)||242.26||242.57|
|Total Assets ($mil)||4109.84||3952.33|
|Total Debt ($mil)||2808.02||2552.72|
|Profitability||Q1 FY18||Q1 FY17|
|Gross Profit Margin||65.26||56.43|
|Return on Assets||4.66||3.2|
|Return on Equity||41.43||24.12|
|Debt||Q1 FY18||Q1 FY17|
|Share Data||Q1 FY18||Q1 FY17|
|Shares outstanding (mil)||240.2||246.2|
|Div / share||0.09||0.07|
|Book value / share||1.93||2.13|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4169646.0||3769890.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 29.34 for the Hotels, Restaurants & Leisure industry and a discount compared to the S&P 500 average of 24.78. Conducting a second comparison, its price-to-book ratio of 8.62 indicates a significant premium versus the S&P 500 average of 3.22 and a premium versus the industry average of 8.44. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, WENDY'S CO seems to be trading at a discount to investment alternatives within the industry.
|WEN 21.58||Peers 29.34||WEN 14.14||Peers 17.90|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
WEN is trading at a significant discount 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 24.44||Peers 23.26||WEN NM||Peers 2.50|
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 significant premium to 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.
WEN's negative PEG ratio makes this valuation measure meaningless.
|WEN 8.62||Peers 8.44||WEN 60.41||Peers 65.06|
Average. 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 valuation on par with its peers.
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
WEN is expected to keep pace with its peers on the basis of earnings growth.
|WEN 3.03||Peers 3.59||WEN -1.81||Peers 9.03|
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 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