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Is this Large Market Cap Stock target price reasonable for The Wendy’s Company (NASDAQ:WEN)?

The company in question is,¬†The Wendy’s Company (NASDAQ:WEN)¬†currently with a stock price of 10.86 (0.65% today). The market cap for The Wendy’s Company is 2811.01, and is in the sector Services, and Restaurants industry. The target price for The Wendy’s Company is 11.5. Currently The Wendy’s Company is trading with a P/E of 19.91, and a forward P/E of 24.58. Average volume for The Wendy’s Company is 3843.01 and so far today it is 1067044.

Performance in the last year for The Wendy’s Company has been 24.88%. For EPS growth, The Wendy’s Company has seen a growth of 37.60%, and is looking to grow in the next year to 10.58%. More long term stats show that EPS growth has been 58.60% over the last five years and could be 16.02% for the next five years. The Wendy’s Company has seen sales growth quarter over quarter at -21.80%, with EPS growth quarter over quarter at 46.20%. The 20-day simple moving average is 5.05%, with the 200-day simple moving average coming to 7.52%.

Since the IPO date for The Wendy’s Company on the 3/17/1992, The Wendy’s Company has seen performance year to date to be 2.03%. With The Wendy’s Company trading at 10.86, the dividend yield is 2.22%, and the EPS is 0.54.

So could The Wendy’s Company, be undervalued? Well as said before P/E is 19.91. The PEG is 1.24, P/S is 1.66 and the P/B is at 4.13. The P/cash is 10.56, with P/free cash flow at 407.39.

The Wendy’s Company¬†ability to deal with debt shows that the current ratio is 2.4, and the quick ratio is 2.4. This is with long term debt/equity at 3.59, and total debt/equity at 3.62.

In terms of margins, The Wendy’s Company has a gross margin of 34.10%, an operating margin of 17.80% and a profit margin of 8.60%.Payout ratio for The Wendy’s Company is 43.70%. Return on assets come to 3.50% with return on investment coming to 5.40%.

Insider ownership for The Wendy’s Company, is at 6.30% and institutional ownership comes to 83.00%. Outstanding shares are at 260.52. While shares float is 243.68. The float short is currently 11.59%, and short ratio is 7.35.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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