Wingstop Inc. Fundamental Analysis (NASDAQ: WING)
Wingstop Inc. (NASDAQ: WING) shows moderate financial fundamentals with a PE ratio of 31.83, profit margin of 16.03%, and ROE of -15.19%. The company generates $0.7B in annual revenue with strong year-over-year growth of 11.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.1/100 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
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 31.83 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WING's PEG of -1.05 indicates potential undervaluation.
Price to Book
The market values Wingstop Inc. at -4.78 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.18 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 $16.03 as profit after all expenses.
Operating Margin
Core operations generate 28.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-15.19 in profit for every $100 of shareholder equity.
ROA
Wingstop Inc. generates $17.05 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 $190.29M, reflecting robust business health.
Free Cash Flow
Wingstop Inc. generates strong free cash flow of $129.04M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.74 in free cash annually.
FCF Yield
WING converts 3.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.78
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.08
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.12
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
0.35
vs 25 benchmark
How WING Stacks Against Its Sector Peers
| Metric | WING Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.83 | 24.62 | Worse (Expensive) |
| ROE | -15.19% | 963.00% | Weak |
| Net Margin | 16.03% | -2411.00% (disorted) | Strong |
| Debt/Equity | -0.08 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 2.12 | 2.33 | Strong Liquidity |
| ROA | 17.05% | 374.00% | 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
196.36%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
691.22%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
147.17%
Industry Style: Cyclical, Growth, Discretionary
High Growth