Fact based stock research
Wingstop (NasdaqGS:WING)

US9741551033

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Wingstop stock research in summary

ir.wingstop.comhomedefault.aspx

ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), Wingstop (Restaurants, USA) shares have much better financial characteristics than comparable stocks. Shares of Wingstop are low in value (priced high) with a consolidated Value Rank of 27 (worse than 73% of alternatives). But they show above-average growth (Growth Rank of 97) and are safely financed (Safety Rank of 60, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on Wingstop's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Wingstop exhibits low value (Obermatt Value Rank of 27), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 97). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 60) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	27
Growth Rank	97
Safety Rank	60
Combined Rank	81

Country	USA
Industry	Restaurants
Index	NASDAQ, S&P MIDCAP
Size class	Small

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Wingstop

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	29	25	6	27
GROWTH
GROWTH	76	33	85	97
SAFETY
SAFETY	43	28	37	60
SENTIMENT
SENTIMENT	n/a	90	86	^new
360° VIEW
360° VIEW	n/a	31	54	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 29-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Wingstop is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	29	25	6	27
GROWTH
GROWTH	76	33	85	97
SAFETY
SAFETY	43	28	37	60
COMBINED
COMBINED	29	10	30	81

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Wingstop the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 27 (worse than 73% compared with alternatives), Wingstop shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Wingstop. Expected dividend yields are higher than for 50% of comparable companies (a Dividend Yield rank of 50), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 89, which means that the stock price is lower compared with invested capital than for 89% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 1 which means that the stock price compared with what market professionals expect for future profits is higher than for 99% of comparable companies, indicating a low value concerning Wingstop's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for Wingstop with a rank of 1. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 99% of comparable companies, indicating a low value concerning Wingstop's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 27, is a hold recommendation based on Wingstop's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, Wingstop may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	1	1	1	1
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	29	10	5	1
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	100	88	8	89
DIVIDEND YIELD
DIVIDEND YIELD	24	58	55	50
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	29	25	6	27

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Wingstop; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 97 (better than 97% compared with alternatives) for 2024, Wingstop shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Wingstop. Sales Growth has a value of 96, which means that, currently, professionals expect the company to grow more than 96% of its competitors. The same is valid for Profit Growth with a value of 86 and for Capital Growth with 86. In addition, Stock Returns had an above-average rank value of 89, which means they have been higher than 89% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 97, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Wingstop exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	53	73	88	96
PROFIT GROWTH
PROFIT GROWTH	100	54	64	86
CAPITAL GROWTH
CAPITAL GROWTH	n/a	11	29	86
STOCK RETURNS
STOCK RETURNS	52	47	93	89
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	76	33	85	97

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Wingstop.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 60 (better than 60% compared with alternatives), the company Wingstop has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Wingstop is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Wingstop. Refinancing is at 76, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 76% of its competitors. Liquidity is also good at 82, meaning the company generates more profit to service its debt than 82% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 3, which means the company has an above-average debt-to-equity ratio. It has more debt than 97% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 60 (better than 60% compared with alternatives), Wingstop has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Wingstop could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Wingstop and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	70	2	2	3
REFINANCING
REFINANCING	22	40	66	76
LIQUIDITY
LIQUIDITY	47	74	63	82
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	43	28	37	60

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Wingstop and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	49	40	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	75	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	82	63	^new
MARKET PULSE
MARKET PULSE	n/a	82	85	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	90	86	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Wingstop.
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