WARNER BROS DISCOVERY INC (1WBD.MI) Stock Fundamental Analysis
BIT:1WBD - Euronext Milan - US9344231041 - Common Stock - Currency: EUR
We assign a fundamental rating of 2 out of 10 to 1WBD. 1WBD was compared to 47 industry peers in the Entertainment industry. Both the profitability and financial health of 1WBD have multiple concerns. 1WBD is quite expensive at the moment. It does show a decent growth rate.
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.
With a Return On Invested Capital value of 0.49%, 1WBD perfoms like the industry average, outperforming 47.73% of the companies in the same 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
The Operating Margin of 1WBD (1.46%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of 1WBD has declined.
1WBD has a Gross Margin of 43.00%. This is comparable to the rest of the industry: 1WBD outperforms 47.73% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1WBD 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.
The debt/assets ratio for 1WBD is higher compared to a year ago.
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.
1WBD's Altman-Z score of 0.38 is on the low side compared to the rest of the industry. 1WBD is outperformed by 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.
Looking at the Debt to FCF ratio, with a value of 9.03, 1WBD is in line with its industry, outperforming 54.55% of the companies in the same industry.
1WBD has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.09, 1WBD is in line with its industry, outperforming 45.45% of the companies in the same 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 of 0.89. This is comparable to the rest of the industry: 1WBD outperforms 54.55% of its industry peers.
A Quick Ratio of 0.89 indicates that 1WBD may have some problems paying its short term obligations.
The Quick ratio of 1WBD (0.89) is comparable to the rest of the industry.
| 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.
1WBD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.68% yearly.
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
1WBD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.44% yearly.
The Revenue is expected to grow by 0.69% on average over the next years.
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
The Price/Earnings Ratio is negative for 1WBD. In the last year negative earnings were reported.
Also next year 1WBD is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1WBD is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1WBD indicates a rather cheap valuation: 1WBD is cheaper than 86.36% of the companies listed 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
No dividends for 1WBD!.
| 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%