Here is the new acquisition that I am going to make this week $WEN (+1,17%)
After a drop of almost 40% so far this year, it may seem like a risky investment, but let's see what their numbers say 🤔.
- PER 10.5 vs Historical Average 21-25
- Estimated EPS growth 2-3% (very low expectations after a bad quarter at the beginning of 2025 of -2% in US sales).
- Short Term Debt situation under control (700M current assets vs. 350M current liabilities)
- Number of shares outstanding, down around 2% p.a.
- Fair Value estimated at around $15-17 per share
To highlight it has a payout too high and a dividend of around 9% and as for its balance sheets, although in the short term the situation is under control, in the long term it accumulates a lot of debt and is expected to accumulate more, leaving a fairly low net worth compared to its market capitalization.
At current prices ($10.47/share) and a potential revaluation by per ratio and an improvement of its long-term debt, especially if interest rates are finally lowered in the US, it can give exaggeratedly high returns, it would only need a good quarter and a suitable environment to get a great result from this company.
