Wingstop Inc.
Wingstop Inc. Fundamental Analysis
Wingstop Inc. (WING) shows moderate financial fundamentals with a PE ratio of 24.24, profit margin of 25.01%, and ROE of -24.54%. The company generates $0.7B in annual revenue with strong year-over-year growth of 36.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
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
ExcellentWING delivers strong and consistent growth momentum.
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 24.24 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WING's PEG of 29.82 indicates potential overvaluation.
Price to Book
The market values Wingstop Inc. at -5.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.53 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 $25.01 as profit after all expenses.
Operating Margin
Core operations generate 25.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-24.54 in profit for every $100 of shareholder equity.
ROA
Wingstop Inc. generates $25.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wingstop Inc. produces operating cash flow of $153.56M, showing steady but balanced cash generation.
Free Cash Flow
Wingstop Inc. generates strong free cash flow of $105.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.81 in free cash annually.
FCF Yield
WING converts 2.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
29.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
-5.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.25
vs 25 benchmark
ROA
Return on assets percentage
0.25
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How WING Stacks Against Its Sector Peers
| Metric | WING Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.24 | 23.78 | Neutral |
| ROE | -24.54% | 1098.00% | Weak |
| Net Margin | 25.01% | -626.00% (disorted) | Strong |
| Debt/Equity | -1.80 | 0.86 | Strong (Low Leverage) |
| Current Ratio | 3.26 | 2.64 | Strong Liquidity |
| ROA | 25.13% | -8081.00% (disorted) | Strong |
WING outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
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
215.05%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
433.72%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
310.63%
Industry Style: Cyclical, Growth, Discretionary
High Growth