Wingstop Inc (WING, Financial), a prominent player in the restaurant industry, is currently trading at $167.7 with a market cap of $5.03 billion. Despite a recent dip of 13.29% over the past four weeks, the stock has seen a gain of 3.07% today. This article will delve into the company's impressive GF Score of 97/100 and what it implies for potential investors.
GF Score Analysis
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. A higher GF Score generally indicates higher returns. With a GF Score of 97/100, Wingstop Inc falls into the category of stocks with the highest outperformance potential.
Financial Strength Analysis
The Financial Strength Rank measures a company's financial situation based on its debt burden, debt to revenue ratio, and Altman Z-Score. Wingstop Inc has a Financial Strength Rank of 5/10. Its interest coverage is 5.27, indicating a manageable debt burden. The debt to revenue ratio is 1.72, and the Altman Z score is 4.60, both of which are within acceptable ranges.
Profitability Rank Analysis
The Profitability Rank measures a company's profitability and its likelihood to stay profitable. Wingstop Inc boasts a Profitability Rank of 10/10, indicating strong profitability. The company's Operating Margin is 25.30%, and its Piotroski F-Score is 5, suggesting a healthy financial situation. Furthermore, the company has shown consistent profitability over the past 10 years.
Growth Rank Analysis
The Growth Rank measures a company's revenue and profitability growth. Wingstop Inc has a Growth Rank of 10/10, indicating strong growth. The company's 5-year revenue growth rate is 21.60%, and its 3-year revenue growth rate is 21.00%. The 5-year EBITDA growth rate is also impressive at 22.10%.
GF Value Rank and Momentum Rank Analysis
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth. Wingstop Inc has a GF Value Rank of 9/10, suggesting it is reasonably valued. The company's Momentum Rank is 9/10, indicating strong price momentum.
Competitor Analysis
When compared to its main competitors, Wingstop Inc stands out with its high GF Score. Cracker Barrel Old Country Store Inc (CBRL, Financial) has a GF Score of 78, Sweetgreen Inc (SG, Financial) has a GF Score of 20, and Luckin Coffee Inc (LKNCY, Financial) has a GF Score of 51. This comparison further highlights Wingstop Inc's strong performance potential. For more details, please visit our competitors page.
In conclusion, Wingstop Inc's high GF Score, strong profitability, and impressive growth make it a compelling choice for investors. However, as with any investment, it's crucial to conduct thorough research and consider the company's financial strength and market conditions before making a decision.
