Now trading at a price of $167.83, Wingstop has moved -0.4% so far today.
Wingstop returned gains of 30.0% last year, with its stock price reaching a high of $223.77 and a low of $108.34. Over the same period, the stock outperformed the S&P 500 index by 20.0%. More recently, the company's 50-day average price was $191.7. Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. Based in Addison, TX, the mid-cap Consumer Discretionary company has 239 full time employees. Wingstop has offered a 0.4% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2020-02-19 | 2021-02-18 | 2022-02-16 | 2023-02-22 | |
|---|---|---|---|---|
| Revenue (k) | $199,676 | $248,811 | $282,502 | $357,521 |
| Gross Margins | 79.4% | 80.5% | 79.7% | 82.3% |
| Operating Margins | 21.5% | 21.8% | 24.9% | 26.0% |
| Net Margins | 10.25% | 9.37% | 15.1% | 14.81% |
| Net Income (k) | $20,476 | $23,306 | $42,658 | $52,947 |
| Net Interest Expense (k) | -$17,136 | -$16,782 | -$14,984 | -$21,230 |
| Depreciation & Amort. (k) | -$5,484 | -$7,518 | -$7,943 | -$10,899 |
| Earnings Per Share | $0.69 | $0.78 | $1.42 | $2.0 |
| EPS Growth | n/a | 13.04% | 82.05% | 40.85% |
| Diluted Shares (k) | 29,670 | 29,804 | 29,963 | 29,969 |
| Free Cash Flow (k) | $61,069 | $66,782 | $69,692 | $96,115 |
| Capital Expenditures | -$22,486 | -$1,252 | -$20,814 | -$19,877 |
| Net Current Assets (k) | -$345,351 | -$480,255 | -$488,579 | -$588,379 |
| Current Ratio | 0.92 | 1.44 | 1.77 | 3.63 |
| Long Term Debt (k) | $307,669 | $466,933 | $469,394 | $706,846 |
| Net Debt / EBITDA | 7.88 | 9.77 | n/a | 7.71 |
Wingstop has growing revenues and a flat capital expenditure trend, strong margins with a stable trend, and exceptional EPS growth. The company also benefits from a pattern of improving cash flows, an excellent current ratio, and wider gross margins than its peer group. However, the firm has a highly leveraged balance sheet.
Wingstop Has Elevated P/B and P/E Ratios:
Wingstop has a trailing twelve month P/E ratio of 95.8, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $2.49, the company has a forward P/E ratio of 77.0. Wingstop's PEG ratio is 8.9 on the basis of the 10.8% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued.
There's an Analyst Consensus of Strong Upside Potential for Wingstop:
The 17 analysts following Wingstop have set target prices ranging from $174.0 to $240.0 per share, for an average of $210.65 with a hold rating. As of April 2023, the company is trading -9.0% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Wingstop has an average amount of shares sold short because 5.9% of the company's shares are sold short. Institutions own 106.1% of the company's shares, and the insider ownership rate stands at 0.32%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 12% stake in the company is worth $600,380,950.
