Wendys Beneish M Score

WEN
 Stock
  

USD 23.01  0.32  1.41%   

This module uses fundamental data of Wendys to approximate the value of its Beneish M Score. Wendys M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Wendys Piotroski F Score and Wendys Altman Z Score analysis.
  
Wendys Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 820.2 Million. Debt Current is expected to rise to about 26.8 M this year, although the value of Issuance Repayment of Debt Securities will most likely fall to (47 M). Wendys Net Current Assets as percentage of Total Assets are quite stable at the moment as compared to the past year. The company's current value of Net Current Assets as percentage of Total Assets is estimated at 3.99. Book Value per Share is expected to rise to 7.04 this year, although the value of Interest Coverage will most likely fall to 2.74.
At this time, it appears that The Wendys is an unlikely manipulator. The earnings manipulation may begin if Wendys' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Wendys executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Wendys' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.4
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.28Focus
Asset Quality0.96Focus
Expense Coverage1.13Focus
Gross Margin Strengs0.97Focus
Accruals Factor1.13Focus
Depreciation Resistance1.05Focus
Net Sales Growth0.87Focus
Financial Leverage Condition1.02Focus

Wendys Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Wendys' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense206.8 M212.2 M
Fairly Down
Decreasing
Slightly volatile
Revenues1.6 B1.9 B
Fairly Down
Decreasing
Stable
Trade and Non Trade Receivables59.6 M54 M
Significantly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net591.8 M439.6 M
Significantly Up
Decreasing
Slightly volatile
Operating Income309.1 M333.4 M
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations314.4 M345.8 M
Significantly Down
Increasing
Slightly volatile
Liabilities Non CurrentB766.9 M
Significantly Up
Decreasing
Slightly volatile
Current Liabilities344.3 M426.9 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities4.3 B4.7 B
Significantly Down
Increasing
Slightly volatile
Investments Non Current67.8 M54.2 M
Significantly Up
Decreasing
Slightly volatile
Investments Current169.7 M109.9 M
Way Up
Decreasing
Slightly volatile
Investments225.9 M209.7 M
Significantly Up
Decreasing
Stable
Gross Margin58.7760.7753
Sufficiently Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion69.9 M54.6 M
Significantly Up
Decreasing
Slightly volatile
Debt Non Current782.3 M631.7 M
Fairly Up
Decreasing
Slightly volatile
Debt Current26.8 M26.1 M
Fairly Up
Decreasing
Slightly volatile
Total Debt820.2 M652.1 M
Significantly Up
Decreasing
Slightly volatile
Assets Non Current1.5 B1.1 B
Way Up
Decreasing
Slightly volatile
Current Assets524.8 M592.8 M
Fairly Down
Decreasing
Stable
Total Assets4.8 B5.1 B
Notably Down
Increasing
Slightly volatile

The Wendys Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Wendys' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Wendys in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Wendys' degree of accounting gimmicks and manipulations.

About Wendys Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

300.56 Million

Wendys Operating Expenses is quite stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 300.56 Million

About Wendys Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze The Wendys Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Wendys using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of The Wendys Co based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
The Wendys Company, together with its subsidiaries, operates as a quick-service restaurant company. The Wendys Company was founded in 1969 and is headquartered in Dublin, Ohio. Wendys operates under Restaurants classification in the United States and is traded on NASDAQ Exchange. It employs 4833 people.

Wendys Investors Sentiment

The influence of Wendys' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Wendys. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Wendys' public news can be used to forecast risks associated with investment in Wendys. The trend in average sentiment can be used to explain how an investor holding Wendys can time the market purely based on public headlines and social activities around The Wendys Co. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Wendys' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Wendys' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Wendys' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Wendys.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Wendys in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Wendys' short interest history, or implied volatility extrapolated from Wendys options trading.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Check out Wendys Piotroski F Score and Wendys Altman Z Score analysis. Note that the The Wendys information on this page should be used as a complementary analysis to other Wendys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Complementary Tools for Wendys Stock analysis

When running The Wendys price analysis, check to measure Wendys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Wendys is operating at the current time. Most of Wendys' value examination focuses on studying past and present price action to predict the probability of Wendys' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Wendys' price. Additionally, you may evaluate how the addition of Wendys to your portfolios can decrease your overall portfolio volatility.
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Is Wendys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wendys. If investors know Wendys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wendys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.32
Market Capitalization
4.8 B
Quarterly Revenue Growth YOY
0.15
Return On Assets
0.038
Return On Equity
0.38
The market value of The Wendys is measured differently than its book value, which is the value of Wendys that is recorded on the company's balance sheet. Investors also form their own opinion of Wendys' value that differs from its market value or its book value, called intrinsic value, which is Wendys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wendys' market value can be influenced by many factors that don't directly affect Wendys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Wendys' value and its price as these two are different measures arrived at by different means. Investors typically determine Wendys value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wendys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.