The Wendy’s Company [NASDAQ:WEN]: Analyst Rating and Earnings
Equities traders oftentimes stay updated on what leading stock market analysts say about a potential stock purchase. When it comes to The Wendy’s Company [WEN], the most recently available average analyst rating is from the quarter that ends in December. On average, stock market experts give WEN an Outperform rating. Its stock price has been found in the range of 14.96 to 18.68. This is compared to its latest closing price of $16.80.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Wendy’s Company [WEN] is sitting at 2.12. This is compared to 1 month ago, when its average rating was 2.17.
For the quarter ending in Dec-18 The Wendy’s Company [WEN] generated $0.4 billion in sales. That’s 0.54% lower than the average estimate of $0.4 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep looking out for the next-scheduled quarterly financial results that this company is expected to put out, which is slated to occur on Tue 14 May (In 60 Days).
Fundamental Analysis of The Wendy’s Company [WEN]
Now let’s turn to look at profitability: with a current Operating Margin for The Wendy’s Company [WEN] sitting at +16.15 and its Gross Margin at +29.83, this company’s Net Margin is now 28.90%. These measurements indicate that The Wendy’s Company [WEN] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 7.60, and its Return on Invested Capital has reached 3.70%. Its Return on Equity is 75.33, and its Return on Assets is 10.67. These metrics all suggest that The Wendy’s Company is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, The Wendy’s Company [WEN] has generated a Total Debt to Total Equity ratio of 429.40. Similarly, its Total Debt to Total Capital is 81.11, while its Total Debt to Total Assets stands at 62.99. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 424.52, and its Long-Term Debt to Total Capital is 80.19. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 15.96 and its Total Debt to EBITDA Value is 7.22. The Enterprise Value to Sales for this firm is now 3.87, and its Total Debt to Enterprise Value stands at 0.46. The Wendy’s Company [WEN] has a Price to Book Ratio of 5.57, a Price to Cash Flow Ratio of 17.08 and P/E Ratio of 8.96. These metrics all suggest that The Wendy’s Company is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, The Wendy’s Company [WEN] earns $127,195 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 14.18 and its Total Asset Turnover is 0.37. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.33 and its Current Ratio is 2.34. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
The Wendy’s Company [WEN] has 223.04M shares outstanding, amounting to a total market cap of $3.75B. Its stock price has been found in the range of 14.96 to 18.68. At its current price, it has moved by -10.01% from its 52-week high, and it has moved 12.40% from its 52-week low.
This stock’s Beta value is currently 0.78, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 46.28. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Wendy’s Company [WEN] a Reliable Buy?
Shares of The Wendy’s Company [WEN], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.