WARNER BROS DISCOVERY INC (1WBD.MI) Stock Fundamental Analysis
BIT:1WBD - US9344231041 - Common Stock
10.4 EUR
+0.89 (+9.4%)
Taking everything into account, 1WBD scores 3 out of 10 in our fundamental rating. 1WBD was compared to 44 industry peers in the Entertainment industry. 1WBD has a bad profitability rating. Also its financial health evaluation is rather negative. 1WBD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1WBD had positive earnings in the past year.
In the past year 1WBD had a positive cash flow from operations.
In multiple years 1WBD reported negative net income over the last 5 years.
In the past 5 years 1WBD always reported a positive cash flow from operatings.
1.2 Ratios
1WBD has a Return On Assets (0.75%) which is in line with its industry peers.
1WBD has a Return On Equity of 2.13%. This is comparable to the rest of the industry: 1WBD outperforms 57.14% of its industry peers.
The Return On Invested Capital of 1WBD (1.19%) is comparable to the rest of the industry.
| 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
With a Profit Margin value of 2.00%, 1WBD perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
1WBD has a Operating Margin (3.65%) which is in line with its industry peers.
In the last couple of years the Operating Margin of 1WBD has declined.
Looking at the Gross Margin, with a value of 44.43%, 1WBD is doing worse than 66.67% of the companies in the same industry.
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
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.
Compared to 5 years ago, 1WBD has more shares outstanding
The debt/assets ratio for 1WBD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that 1WBD is in the distress zone and has some risk of bankruptcy.
1WBD has a Altman-Z score (0.55) 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.
1WBD has a Debt to FCF ratio of 8.52. This is comparable to the rest of the industry: 1WBD outperforms 52.38% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that 1WBD is somewhat dependend on debt financing.
1WBD has a Debt to Equity ratio of 0.95. This is comparable to the rest of the industry: 1WBD outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.17
WACC6.93%
2.3 Liquidity
A Current Ratio of 1.04 indicates that 1WBD should not have too much problems paying its short term obligations.
1WBD has a better Current ratio (1.04) than 64.29% of its industry peers.
A Quick Ratio of 1.04 indicates that 1WBD should not have too much problems paying its short term obligations.
The Quick ratio of 1WBD (1.04) is better than 64.29% 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.
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)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
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 decrease by -0.12% on average over the next years.
EPS Next Y137.44%
EPS Next 2Y36.95%
EPS Next 3Y22.88%
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
With a Price/Earnings ratio of 40.00, 1WBD can be considered very expensive at the moment.
1WBD's Price/Earnings ratio is a bit cheaper when compared to the industry. 1WBD is cheaper than 64.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1WBD to the average of the S&P500 Index (27.03), we can say 1WBD is valued slightly more expensively.
1WBD is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1WBD is valued cheaper than 85.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1WBD indicates a somewhat cheap valuation: 1WBD is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.41 | ||
| EV/EBITDA | 2.93 |
4.3 Compensation for Growth
1WBD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1WBD's earnings are expected to grow with 22.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y36.95%
EPS Next 3Y22.88%
5. Dividend
5.1 Amount
No dividends for 1WBD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1WBD (8/28/2025, 7:00:00 PM)
10.4
+0.89 (+9.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners70.78%
Inst Owner ChangeN/A
Ins Owners1.16%
Ins Owner ChangeN/A
Market Cap25.75B
Analysts74.84
Price Target12.64 (21.54%)
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)5.18%
PT rev (3m)9.2%
EPS NQ rev (1m)-226.66%
EPS NQ rev (3m)-6258.72%
EPS NY rev (1m)229.22%
EPS NY rev (3m)251.09%
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 | 40 | ||
| Fwd PE | N/A | ||
| P/S | 0.78 | ||
| P/FCF | 7.41 | ||
| P/OCF | 5.91 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.93 |
EPS(TTM)0.26
EY2.5%
EPS(NY)-0.1
Fwd EYN/A
FCF(TTM)1.4
FCFY13.5%
OCF(TTM)1.76
OCFY16.93%
SpS13.27
BVpS12.45
TBVpS-13.33
PEG (NY)0.29
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 | 0.55 |
F-Score8
WACC6.93%
ROIC/WACC0.17
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 Y137.44%
EPS Next 2Y36.95%
EPS Next 3Y22.88%
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 Year200.91%
EBIT Next 3Y44.98%
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%