WARNER BROS DISCOVERY INC (1WBD.MI) Stock Fundamental Analysis
Europe - BIT:1WBD - US9344231041 - Common Stock
16.366 EUR
+0.14 (+0.85%)
1WBD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Entertainment industry. Both the profitability and financial health of 1WBD have multiple concerns. 1WBD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1WBD had positive earnings in the past year.
1WBD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1WBD reported negative net income in multiple years.
In the past 5 years 1WBD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.75%, 1WBD is in line with its industry, outperforming 50.00% of the companies in the same industry.
1WBD has a Return On Equity of 2.13%. This is comparable to the rest of the industry: 1WBD outperforms 54.17% of its industry peers.
1WBD has a Return On Invested Capital (1.19%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.13% | ||
| ROIC | 1.19% |
ROA(3y)-6.3%
ROA(5y)-2.79%
ROE(3y)-18.63%
ROE(5y)-8.08%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
1WBD has a Profit Margin (2.00%) which is comparable to the rest of the industry.
1WBD's Operating Margin of 3.65% is in line compared to the rest of the industry. 1WBD outperforms 54.17% of its industry peers.
In the last couple of years the Operating Margin of 1WBD has declined.
With a Gross Margin value of 44.43%, 1WBD is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
1WBD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.65% | ||
| PM (TTM) | 2% | ||
| GM | 44.43% |
OM growth 3Y-55.14%
OM growth 5Y-45.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.55%
GM growth 5Y-8.3%
2. Health
2.1 Basic Checks
1WBD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1WBD has more shares outstanding than it did 1 year ago.
1WBD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1WBD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that 1WBD is in the distress zone and has some risk of bankruptcy.
1WBD has a Altman-Z score (0.71) which is comparable to the rest of the industry.
The Debt to FCF ratio of 1WBD is 8.52, which is on the high side as it means it would take 1WBD, 8.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1WBD (8.52) is comparable to the rest of the industry.
1WBD has a Debt/Equity ratio of 0.95. This is a neutral value indicating 1WBD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, 1WBD perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.19
WACC6.13%
2.3 Liquidity
1WBD has a Current Ratio of 1.04. This is a normal value and indicates that 1WBD is financially healthy and should not expect problems in meeting its short term obligations.
1WBD has a better Current ratio (1.04) than 64.58% of its industry peers.
A Quick Ratio of 1.04 indicates that 1WBD should not have too much problems paying its short term obligations.
1WBD has a better Quick ratio (1.04) than 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
1WBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.52%, which is quite impressive.
The Revenue has decreased by -3.74% in the past year.
1WBD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.68% yearly.
EPS 1Y (TTM)127.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%275%
Revenue 1Y (TTM)-3.74%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%1.02%
3.2 Future
Based on estimates for the next years, 1WBD will show a very strong growth in Earnings Per Share. The EPS will grow by 23.44% on average per year.
The Revenue is expected to decrease by -0.12% on average over the next years.
EPS Next Y133.31%
EPS Next 2Y36.73%
EPS Next 3Y24.47%
EPS Next 5Y23.44%
Revenue Next Year-5.41%
Revenue Next 2Y-2.53%
Revenue Next 3Y-1.27%
Revenue Next 5Y-0.12%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 62.95 indicates a quite expensive valuation of 1WBD.
Compared to the rest of the industry, the Price/Earnings ratio of 1WBD indicates a somewhat cheap valuation: 1WBD is cheaper than 60.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.91. 1WBD is valued rather expensively when compared to this.
1WBD is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.95 | ||
| Fwd PE | N/A |
4.2 Price Multiples
79.17% of the companies in the same industry are more expensive than 1WBD, based on the Enterprise Value to EBITDA ratio.
77.08% of the companies in the same industry are more expensive than 1WBD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.59 | ||
| EV/EBITDA | 3.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as 1WBD's earnings are expected to grow with 24.47% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y36.73%
EPS Next 3Y24.47%
5. Dividend
5.1 Amount
No dividends for 1WBD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1WBD (9/30/2025, 7:00:00 PM)
16.366
+0.14 (+0.85%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners73.13%
Inst Owner ChangeN/A
Ins Owners1.17%
Ins Owner ChangeN/A
Market Cap40.52B
Analysts74.84
Price Target14.41 (-11.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)180.82%
Min EPS beat(2)-36.9%
Max EPS beat(2)398.54%
EPS beat(4)2
Avg EPS beat(4)-238.7%
Min EPS beat(4)-1474.18%
Max EPS beat(4)398.54%
EPS beat(8)2
Avg EPS beat(8)-447.78%
EPS beat(12)2
Avg EPS beat(12)-941.6%
EPS beat(16)4
Avg EPS beat(16)-379.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.93%
Min Revenue beat(2)-7.39%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-3.3%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-2.99%
Revenue beat(12)0
Avg Revenue beat(12)-3.13%
Revenue beat(16)1
Avg Revenue beat(16)-6.98%
PT rev (1m)19.96%
PT rev (3m)24.54%
EPS NQ rev (1m)-226.66%
EPS NQ rev (3m)-6258.72%
EPS NY rev (1m)214.96%
EPS NY rev (3m)234.42%
Revenue NQ rev (1m)-2.05%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)-1.46%
Revenue NY rev (3m)-3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.95 | ||
| Fwd PE | N/A | ||
| P/S | 1.23 | ||
| P/FCF | 11.59 | ||
| P/OCF | 9.24 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.77 |
EPS(TTM)0.26
EY1.59%
EPS(NY)-0.1
Fwd EYN/A
FCF(TTM)1.41
FCFY8.63%
OCF(TTM)1.77
OCFY10.82%
SpS13.35
BVpS12.52
TBVpS-13.41
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.13% | ||
| ROCE | 1.58% | ||
| ROIC | 1.19% | ||
| ROICexc | 1.26% | ||
| ROICexgc | 11.53% | ||
| OM | 3.65% | ||
| PM (TTM) | 2% | ||
| GM | 44.43% | ||
| FCFM | 10.57% |
ROA(3y)-6.3%
ROA(5y)-2.79%
ROE(3y)-18.63%
ROE(5y)-8.08%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-43.23%
ROICexcg growth 5Y-35.25%
ROICexc growth 3Y-54.46%
ROICexc growth 5Y-42.78%
OM growth 3Y-55.14%
OM growth 5Y-45.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.55%
GM growth 5Y-8.3%
F-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 5.44% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 24.98% | ||
| Profit Quality | 529.3% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 0.71 |
F-Score8
WACC6.13%
ROIC/WACC0.19
Cap/Depr(3y)4.94%
Cap/Depr(5y)6.3%
Cap/Sales(3y)2.84%
Cap/Sales(5y)3.07%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)127.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%275%
EPS Next Y133.31%
EPS Next 2Y36.73%
EPS Next 3Y24.47%
EPS Next 5Y23.44%
Revenue 1Y (TTM)-3.74%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%1.02%
Revenue Next Year-5.41%
Revenue Next 2Y-2.53%
Revenue Next 3Y-1.27%
Revenue Next 5Y-0.12%
EBIT growth 1Y692.83%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year197.32%
EBIT Next 3Y44.1%
EBIT Next 5Y24.17%
FCF growth 1Y31.89%
FCF growth 3Y22.22%
FCF growth 5Y7.32%
OCF growth 1Y17.11%
OCF growth 3Y24.31%
OCF growth 5Y9.6%