Wendys Story

WEN -- USA Stock

USD 22.28 0.26 1.18%

Macroaxis Story

Wendys Invested Capital Average is quite stable at the moment as compared to the past year. The company's current value of Invested Capital Average is estimated at 1.5 Billion. Tangible Asset Value is expected to rise to about 1.2 B this year, although the value of Revenue Per Employee will most likely fall to about 83.1 K. Wendys Company is scheduled to announce its earnings today. The next earnings report is expected on the 5th of May 2021. While some generation-Y investors are indifferent towards consumer cyclical space, it makes sense to outline Wendys Company using its fundamentals . We will analyze why Wendys investors may still consider a stake in the business. The company current chance of bankruptcy is under 48 percent. Will institutional investors continue to be optimistic, or should we expect a sell-off?

Published over a month ago

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Are institutional investors happy with Wendys (NASDAQ:WEN) basic indicators?

The firm maintains a market beta of 0.5662, which attests to possible diversification benefits within a given portfolio. Let's try to break down what Wendys's beta means in this case. As returns on the market increase, Wendys returns are expected to increase less than the market. However, during the bear market, the loss on holding Wendys will be expected to be smaller as well. Even though it is essential to pay attention to Wendys Company historical price patterns, it is always good to be careful when utilizing equity current price history. Our philosophy towards determining any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Wendys Company exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Wendys Company has an expected return of -0.12%. Please be advised to check out Wendys Company value at risk, as well as the relationship between the skewness and day median price to decide if Wendys Company stock performance from the past will be repeated at some point in the near future.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Wendys income statement, its balance sheet, and the statement of cash flows. Potential Wendys investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Wendys investors may use each financial statement separately, they are all related. The changes in Wendys's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Wendys's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

The goal of Wendys fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Wendys performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Wendys shares is the value that is considered the true value of the share. If the intrinsic value Wendys is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Wendys.

Please read more on our fundamental analysis page.

What is Wendys Asset Breakdown?

Wendys Company reports assets on its Balance Sheet. It represents the amount of Wendys resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Wendys volatility, please check the breakdown of all its fundamentals

Are Wendys Earnings Expected to grow?

The future earnings power of Wendys involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Wendys factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Wendys stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Wendys expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Wendys earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Wendys dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Wendys one year expected dividend income is about $0.18 per share.

Wendys Dividend Yield is quite stable at the moment as compared to the past year. The company's current value of Dividend Yield is estimated at 0.07. Dividends per Basic Common Share is expected to rise to 1.86 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (86.9 M).

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-80.5 M	-86.9 M
Dividend Yield	0.07	0.07
Dividends per Basic Common Share	1.56	1.86

Investing in dividend-paying stocks, such as Wendys Company is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Wendys must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Wendys. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Wendys, but it might be worth checking our own buy vs. sell analysis

Wendys Gross Profit

Wendys Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Wendys previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Wendys Gross Profit growth over the last 10 years.

Please check Gross Profit in more details.

Wendys exotic insider transaction detected

Legal trades by Wendys insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Wendys insider trading alert for general transaction of common stock by Matthew Peltz, the corporate stakeholder, on 8th of April 2021. This event was filed by Wendys Co with SEC on 2021-04-08. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Wendys Investor Appetite?

Institutional investors typically avoid acquiring a high percentage of Wendys stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Wendys is distributed among investors.

Ownership Allocation

Wendys Company owns a total of 224.12 Million outstanding shares. The majority of Wendys outstanding shares are owned by institutional investors. These institutions are usually referred to as non-private investors looking to purchase positions in Wendys Company to benefit from reduced commissions. Consequently, other corporate entities are subject to a different set of regulations than regular investors in Wendys Company. Please pay attention to any change in the institutional holdings of Wendys Company as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors

19.65%

Insiders

7.85%

Institutions

72.5%

	Retail Investors	19.65
	Insiders	7.85
	Institutions	72.5

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Wendys has an asset utilization ratio of 33.1 percent. This suggests that the company is making $0.33 for each dollar of assets. An increasing asset utilization means that Wendys Company is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets

627.3 M

Assets Non Current

1.5 B

Goodwill

831.1 M

Current Assets	627.28 Million	20.88
Assets Non Current	1.53 Billion	50.89
Goodwill	831.1 Million	27.66
Tax Assets	17.01 Million	0.57

Will Wendys institutional investors go insane after another slide?

Jensen Alpha just dropped to -0.11, may entail upcoming price depreciation. Wendys Company exhibits very low volatility with skewness of 0.59 and kurtosis of 0.01. However, we advise investors to further study Wendys Company technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Wendys' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Wendys' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Wendys

Whereas some firms in the restaurants industry are either recovering or due for a correction, Wendys may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 3rd of March 2021, we believe that at this point, Wendys is very steady with close to average probability of financial unrest within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our overall 30 days recommendation on the company is Strong Buy.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Wendys Company. Please refer to our Terms of Use for any information regarding our disclosure principles.

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