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. While showing a medium growth rate, 1WBD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
1WBD had negative earnings in the past year.
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's Return On Assets of -10.82% 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 worse Return On Equity (-33.23%) than 65.91% of its industry peers.
1WBD has a Return On Invested Capital (0.49%) which 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.
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.
In the last couple of years the Gross Margin of 1WBD has declined.
| 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.
Compared to 1 year ago, 1WBD has more shares outstanding
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 0.38, we must say that 1WBD is in the distress zone and has some risk of bankruptcy.
1WBD has a worse Altman-Z score (0.38) than 68.18% of its industry peers.
The Debt to FCF ratio of 1WBD is 9.03, which is on the high side as it means it would take 1WBD, 9.03 years of fcf income to pay off all of its debts.
1WBD has a Debt to FCF ratio (9.03) which is comparable to the rest of the industry.
1WBD has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
1WBD has a Debt to Equity ratio of 1.09. This is comparable to the rest of the industry: 1WBD outperforms 45.45% of its industry peers.
| 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.
1WBD has a Quick 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 Quick ratio of 0.89. This is comparable to the rest of the industry: 1WBD outperforms 56.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
1WBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.78%, which is quite impressive.
Looking at the last year, 1WBD shows a decrease in Revenue. The Revenue has decreased by -4.84% in the last 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
The Earnings Per Share is expected to grow by 23.44% on average over the next years. This is a very strong growth
Based on estimates for the next years, 1WBD will show a small growth in Revenue. The Revenue will grow by 0.69% on average per year.
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.
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 cheaper than 86.36% of the companies in the same industry.
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%