WARNER BROS DISCOVERY INC (1WBD.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1WBD • US9344231041
24.475 EUR
-0.62 (-2.47%)
Last: Jan 21, 2026, 07:00 PM
Taking everything into account, 1WBD scores 3 out of 10 in our fundamental rating. 1WBD was compared to 48 industry peers in the Entertainment industry. 1WBD has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1WBD is valied quite expensively at the moment, while it does show 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
- 1WBD has a better Return On Assets (0.48%) than 60.87% of its industry peers.
- With a decent Return On Equity value of 1.35%, 1WBD is doing good in the industry, outperforming 63.04% of the companies in the same industry.
- The Return On Invested Capital of 1WBD (1.48%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 1.35% | ||
| ROIC | 1.48% |
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
- The Profit Margin of 1WBD (1.28%) is better than 63.04% of its industry peers.
- 1WBD has a Operating Margin (4.61%) which is in line with its industry peers.
- 1WBD's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 44.92%, 1WBD is in line with its industry, outperforming 43.48% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1WBD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.61% | ||
| PM (TTM) | 1.28% | ||
| GM | 44.92% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1WBD is destroying value.
- The number of shares outstanding for 1WBD has been increased compared to 1 year ago.
- The number of shares outstanding for 1WBD has been increased compared to 5 years ago.
- 1WBD has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.96, we must say that 1WBD is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of 1WBD (0.96) is comparable to the rest of the industry.
- The Debt to FCF ratio of 1WBD is 8.11, which is on the high side as it means it would take 1WBD, 8.11 years of fcf income to pay off all of its debts.
- 1WBD's Debt to FCF ratio of 8.11 is in line compared to the rest of the industry. 1WBD outperforms 47.83% of its industry peers.
- 1WBD has a Debt/Equity ratio of 0.93. This is a neutral value indicating 1WBD is somewhat dependend on debt financing.
- 1WBD's Debt to Equity ratio of 0.93 is in line compared to the rest of the industry. 1WBD outperforms 47.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 8.11 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.17
WACC8.97%
2.3 Liquidity
- A Current Ratio of 1.07 indicates that 1WBD should not have too much problems paying its short term obligations.
- 1WBD's Current ratio of 1.07 is in line compared to the rest of the industry. 1WBD outperforms 58.70% of its industry peers.
- 1WBD has a Quick Ratio of 1.07. This is a normal value and indicates that 1WBD is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.07, 1WBD perfoms like the industry average, outperforming 58.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 121.84% over the past year.
- Looking at the last year, 1WBD shows a decrease in Revenue. The Revenue has decreased by -4.33% in the last 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)121.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-220%
Revenue 1Y (TTM)-4.33%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-6.01%
3.2 Future
- 1WBD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.34% yearly.
- Based on estimates for the next years, 1WBD will show a decrease in Revenue. The Revenue will decrease by -1.09% on average per year.
EPS Next Y140.67%
EPS Next 2Y42.18%
EPS Next 3Y18.4%
EPS Next 5Y23.34%
Revenue Next Year-5.67%
Revenue Next 2Y-3.21%
Revenue Next 3Y-1.76%
Revenue Next 5Y-1.09%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 152.97, 1WBD can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, 1WBD is valued a bit cheaper than 60.87% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, 1WBD is valued quite expensively.
- A Price/Forward Earnings ratio of 1488.04 indicates a quite expensive valuation of 1WBD.
- 1WBD's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1WBD is more expensive than 60.87% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. 1WBD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 152.97 | ||
| Fwd PE | 1488.04 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1WBD is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, 1WBD is valued a bit cheaper than 71.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.49 | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
- 1WBD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1WBD's earnings are expected to grow with 18.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y42.18%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
- 1WBD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
WARNER BROS DISCOVERY INC / 1WBD.MI FAQ
What is the ChartMill fundamental rating of WARNER BROS DISCOVERY INC (1WBD.MI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1WBD.MI.
What is the valuation status of WARNER BROS DISCOVERY INC (1WBD.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to WARNER BROS DISCOVERY INC (1WBD.MI). This can be considered as Overvalued.
What is the profitability of 1WBD stock?
WARNER BROS DISCOVERY INC (1WBD.MI) has a profitability rating of 4 / 10.
What is the financial health of WARNER BROS DISCOVERY INC (1WBD.MI) stock?
The financial health rating of WARNER BROS DISCOVERY INC (1WBD.MI) is 3 / 10.