Wingstop Inc Stock Fair Value Calculation – WINGSTOP INC Reports 27.9% Increase in Revenue for Q2 FY2023, Totaling USD 107.2 Million
August 19, 2023
☀️Earnings Overview
WINGSTOP INC ($NASDAQ:WING) reported total revenue of USD 107.2 million for the second quarter of FY2023, a 27.9% rise from the same period in FY2022. Net income for this quarter was USD 16.2 million, a 21.6% increase year-on-year. These numbers were reported on August 2 2023 and reflect data up to June 30 2023.
Analysis – Wingstop Inc Stock Fair Value Calculation
GoodWhale recently conducted an analysis of the fundamentals of WINGSTOP INC and determined an intrinsic value of $193.4 for its stock. This value was determined using GoodWhale’s proprietary Valuation Line method, which takes into account a range of financial metrics such as earnings, revenue, and assets, to name a few. Currently, the stock is traded at $167.7, meaning it is undervalued by 13.3%. This provides an opportunity for investors to purchase shares of WINGSTOP INC stocks at a discounted price. Nevertheless, it is always important to remember that investing carries risk and investors should always weigh their options carefully before committing. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wingstop Inc. More…
| Total Revenues | Net Income | Net Margin |
| 413.43 | 62.81 | 15.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wingstop Inc. More…
| Operations | Investing | Financing |
| 94.74 | -41.83 | -30.43 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wingstop Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 451.22 | 816.57 | -12.19 |
Key Ratios Snapshot
Some of the financial key ratios for Wingstop Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.6% | 24.8% | 25.3% |
| FCF Margin | ROE | ROA |
| 16.1% | -17.5% | 14.5% |
Peers
The competition in the quick-service restaurant industry is heating up. Wingstop Inc, a leading player in the chicken wing segment, is facing increased competition from Wowprime Corp, Various Eateries PLC, and Hostmore PLC. These companies are all vying for a share of the quick-service restaurant market and are each employing different strategies to gain an edge over their competitors. Wingstop Inc is well-positioned to compete against these rivals and maintain its position as a leading player in the industry.
– Wowprime Corp ($TWSE:2727)
Wiprime Corp, a 9.14B market cap company as of 2022, is a holding company with a -1.91% ROE. The company invests in a range of businesses including healthcare, education, and technology.
– Various Eateries PLC ($LSE:VARE)
Eateries PLC has a market cap of 34.27M as of 2022. The company has a Return on Equity of -5.88%. Eateries PLC is a restaurant company that operates in the United Kingdom.
– Hostmore PLC ($LSE:MORE)
Hostmore PLC is a U.K.-based holding company engaged in the operation of hotels. As of 2022, the company had a market capitalization of 22.07 million pounds and a return on equity of 2.42%. The company operates a portfolio of hotels in the United Kingdom, Spain, and Portugal.
Summary
Investors may be pleased with WINGSTOP INC‘s financial results for the second quarter of FY2023. Total revenue for this period was USD 107.2 million, representing a 27.9% increase year-over-year. Net income for the quarter increased 21.6% to USD 16.2 million.
These results demonstrate strong performance and positive financial growth for the company, which could be attractive to investors. Furthermore, these figures have been bolstered by the company’s strategic decisions and investments in new markets and products, which could further stimulate growth going forward.
