Wingstop Inc. (WING) stock analysis

P/E below its 5-year median

Wingstop's P/E of 39.1 is below its own 5-year median of 86.0.

P/E above the industry

Wingstop's P/E of 39.1 is above the Eating and Drinking Places median of 28.5.

EV/EBITDA below its 5-year median

Wingstop's EV/EBITDA of 24.2 is below its 5-year median of 53.8.

P/S above the industry

Wingstop's price-to-sales of 6.18 is above the Eating and Drinking Places median of 0.73 (book value is negative, so we use sales).

Trading below fair value

The share price of $166.73 is below our fair value estimate of $203.22.

Margin of safety under 20%

The price is 18.0% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 24.9% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 52.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -32.8% over the last twelve months, against a 5-year average of 49.5% a year.

Growing faster than the industry

Revenue grew 6.9% over the last twelve months; the Eating and Drinking Places median is 5.9%.

Guidance raised

Wingstop raised its 2026 Interest expense, net outlook on Oct 28, 2026.

Gross margin slipping

Gross margin was 86.1% over the last twelve months, against 86.1% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 51.3%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 49.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 16.0% over the last twelve months, against a 5-year average of 17.5%.

Net margin above the industry

Wingstop's net margin of 16.0% is above the Eating and Drinking Places median of 1.9%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 15.4% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.12 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.48; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Wingstop paid dividends worth 0.7% of the share price over the last twelve months.

Yield below Treasuries

The 0.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Wingstop yields 0.7%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 29.0% of net income.

Covered by free cash flow

Dividends take 29.1% of free cash flow.