The Wendy’s Company [NASDAQ: WEN] shares went higher by 0.33% from its previous closing of $21.35, now trading at the price of $21.42, also adding 0.07 points. Is WEN stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 2.34 million contracts. Compared to the average trading volume of WEN shares, the company saw a far better performance. Moreover, the stock has a 212.83M float and a -2.41% run over in the last seven days. WEN share price has been hovering between $22.84 and $16.17 lately, and is definitely worthy of attention.
The Wendy’s Company [NASDAQ:WEN]: Analyst Rating and Earnings
Its stock price has been found in the range of 16.17 to 22.84. This is compared to its latest closing price of $21.35.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 20 Feb (In 37 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 7.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, 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 show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates WEN financial performance.
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
What about valuation? This company’s Enterprise Value to EBITDA is 19.17 and its Total Debt to EBITDA Value is 7.22. The Enterprise Value to Sales for this firm is now 4.40, 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 39.20. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
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 231.70M shares outstanding, amounting to a total market cap of $4.96B. Its stock price has been found in the range of 16.17 to 22.84. At its current price, it has moved down by -6.22% from its 52-week high, and it has moved up 32.47% from its 52-week low.
This stock’s Beta value is currently 0.74, which indicates that it is 1.51% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 41.83. 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], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.