Wingstop Inc. Fundamental Analysis
Wingstop Inc. (WING) shows weak financial fundamentals with a PE ratio of 35.76, profit margin of 15.77%, and ROE of -15.30%. The company generates $0.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WING's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWING demonstrates superior asset utilization.
Valuation Score
ModerateWING shows balanced valuation metrics.
Growth Score
ModerateWING shows steady but slowing expansion.
Financial Health Score
ExcellentWING maintains a strong and stable balance sheet.
Profitability Score
ModerateWING maintains healthy but balanced margins.
Key Financial Metrics
Is WING Expensive or Cheap?
P/E Ratio
WING trades at 35.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WING's PEG of -1.10 indicates potential undervaluation.
Price to Book
The market values Wingstop Inc. at -5.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.96 times EBITDA. This signals the market has high growth expectations.
How Well Does WING Make Money?
Net Profit Margin
For every $100 in sales, Wingstop Inc. keeps $15.77 as profit after all expenses.
Operating Margin
Core operations generate 28.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-15.30 in profit for every $100 of shareholder equity.
ROA
Wingstop Inc. generates $17.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wingstop Inc. generates strong operating cash flow of $187.44M, reflecting robust business health.
Free Cash Flow
Wingstop Inc. generates strong free cash flow of $130.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.80 in free cash annually.
FCF Yield
WING converts 3.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
-5.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.15
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How WING Stacks Against Its Sector Peers
| Metric | WING Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.76 | 27.54 | Worse (Expensive) |
| ROE | -15.30% | 1273.00% | Weak |
| Net Margin | 15.77% | -3354.00% (disorted) | Strong |
| Debt/Equity | -0.08 | 0.39 | Strong (Low Leverage) |
| Current Ratio | 2.24 | 2.46 | Strong Liquidity |
| ROA | 17.24% | 279.00% | Weak |
WING outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wingstop Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary