WARNER BROS DISCOVERY INC (1WBD.MI) Stock Fundamental Analysis
BIT:1WBD - Euronext Milan - US9344231041 - Common Stock - Currency: EUR
1WBD gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 46 industry peers in the Entertainment industry. 1WBD may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, 1WBD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1WBD has reported negative net income.
In the past year 1WBD had a positive cash flow from operations.
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 Return On Assets of -10.82%. This is in the lower half of the industry: 1WBD underperforms 68.18% of its industry peers.
The Return On Equity of 1WBD (-33.23%) is worse than 65.91% of its industry peers.
The Return On Invested Capital of 1WBD (0.49%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.82% | ||
| ROE | -33.23% | ||
| ROIC | 0.49% |
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
With a Operating Margin value of 1.46%, 1WBD perfoms like the industry average, outperforming 47.73% of the companies in the same industry.
In the last couple of years the Operating Margin of 1WBD has declined.
Looking at the Gross Margin, with a value of 43.00%, 1WBD is in line with its industry, outperforming 47.73% of the companies in the same industry.
1WBD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.46% | ||
| PM (TTM) | N/A | ||
| GM | 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.
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
1WBD has an Altman-Z score of 0.38. This is a bad value and indicates that 1WBD is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1WBD (0.38) is worse than 68.18% of its industry peers.
1WBD has a debt to FCF ratio of 9.03. This is a negative value and a sign of low solvency as 1WBD would need 9.03 years to pay back of all of its debts.
With a Debt to FCF ratio value of 9.03, 1WBD perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
A Debt/Equity ratio of 1.09 is on the high side and indicates that 1WBD has dependencies on debt financing.
1WBD has a Debt to Equity ratio (1.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 9.03 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.07
WACC6.9%
2.3 Liquidity
1WBD has a Current Ratio of 0.89. This is a bad value and indicates that 1WBD is not financially healthy enough and could expect problems in meeting its short term obligations.
1WBD has a Current ratio (0.89) which is in line with its industry peers.
A Quick Ratio of 0.89 indicates that 1WBD may have some problems paying its short term obligations.
1WBD has a Quick ratio (0.89) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.78% over the past year.
The Revenue has decreased by -4.84% in the past year.
Measured over the past years, 1WBD shows a very strong growth in Revenue. The Revenue has been growing by 28.68% on average per year.
EPS 1Y (TTM)27.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-2.5%
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.
1WBD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.69% yearly.
EPS Next Y75.22%
EPS Next 2Y44.43%
EPS Next 3Y28.92%
EPS Next 5Y23.44%
Revenue Next Year-1.67%
Revenue Next 2Y-0.48%
Revenue Next 3Y0.38%
Revenue Next 5Y0.69%
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
1WBD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for 1WBD. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
86.36% of the companies in the same industry are more expensive than 1WBD, based on the Enterprise Value to EBITDA ratio.
1WBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1WBD is cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.52 | ||
| EV/EBITDA | 2.6 |
4.3 Compensation for Growth
1WBD's earnings are expected to grow with 28.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.43%
EPS Next 3Y28.92%
5. Dividend
5.1 Amount
1WBD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1WBD (4/14/2025, 7:00:00 PM)
7.171
-0.01 (-0.13%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners68.22%
Inst Owner ChangeN/A
Ins Owners1.05%
Ins Owner ChangeN/A
Market Cap17.60B
Analysts72.5
Price Target11.57 (61.34%)
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)-658.23%
Min EPS beat(2)-1474.18%
Max EPS beat(2)157.73%
EPS beat(4)1
Avg EPS beat(4)-360.29%
Min EPS beat(4)-1474.18%
Max EPS beat(4)157.73%
EPS beat(8)1
Avg EPS beat(8)-1374.61%
EPS beat(12)3
Avg EPS beat(12)-525.58%
EPS beat(16)4
Avg EPS beat(16)-403.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-2.77%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-3.37%
Min Revenue beat(4)-4.51%
Max Revenue beat(4)-2.58%
Revenue beat(8)0
Avg Revenue beat(8)-2.44%
Revenue beat(12)0
Avg Revenue beat(12)-8.68%
Revenue beat(16)2
Avg Revenue beat(16)-6.41%
PT rev (1m)-0.64%
PT rev (3m)-0.64%
EPS NQ rev (1m)-53.66%
EPS NQ rev (3m)-53.66%
EPS NY rev (1m)-70.13%
EPS NY rev (3m)-70.13%
Revenue NQ rev (1m)-3.91%
Revenue NQ rev (3m)-3.91%
Revenue NY rev (1m)-2.44%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.51 | ||
| P/FCF | 4.52 | ||
| P/OCF | 3.72 | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.6 |
EPS(TTM)-0.8
EYN/A
EPS(NY)-0.2
Fwd EYN/A
FCF(TTM)1.59
FCFY22.14%
OCF(TTM)1.93
OCFY26.89%
SpS14.1
BVpS12.21
TBVpS-15.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.82% | ||
| ROE | -33.23% | ||
| ROCE | 0.65% | ||
| ROIC | 0.49% | ||
| ROICexc | 0.52% | ||
| ROICexgc | 6.78% | ||
| OM | 1.46% | ||
| PM (TTM) | N/A | ||
| GM | 43% | ||
| FCFM | 11.26% |
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-Score4
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 9.03 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 4.64% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 0.29 | ||
| Cash Conversion | 25.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 0.38 |
F-Score4
WACC6.9%
ROIC/WACC0.07
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)27.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-25%
EPS Next Y75.22%
EPS Next 2Y44.43%
EPS Next 3Y28.92%
EPS Next 5Y23.44%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-2.5%
Revenue Next Year-1.67%
Revenue Next 2Y-0.48%
Revenue Next 3Y0.38%
Revenue Next 5Y0.69%
EBIT growth 1Y202.86%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year204.29%
EBIT Next 3Y45.48%
EBIT Next 5Y26.07%
FCF growth 1Y-28.14%
FCF growth 3Y22.22%
FCF growth 5Y7.32%
OCF growth 1Y-28.11%
OCF growth 3Y24.31%
OCF growth 5Y9.6%