WARNER BROS DISCOVERY INC (J5A.DE) Stock Fundamental Analysis
FRA:J5A - Deutsche Boerse Ag - US9344231041 - Common Stock - Currency: EUR
We assign a fundamental rating of 2 out of 10 to J5A. J5A was compared to 38 industry peers in the Entertainment industry. J5A may be in some trouble as it scores bad on both profitability and health. J5A has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
J5A had positive earnings in the past year.
In the past year J5A had a positive cash flow from operations.
In multiple years J5A reported negative net income over the last 5 years.
Each year in the past 5 years J5A had a positive operating cash flow.
1.2 Ratios
J5A has a worse Return On Assets (-10.62%) than 76.32% of its industry peers.
Looking at the Return On Equity, with a value of -31.91%, J5A is doing worse than 60.53% of the companies in the same industry.
The Return On Invested Capital of J5A (0.66%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.62% | ||
| ROE | -31.91% | ||
| ROIC | 0.66% |
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
J5A has a Operating Margin of 2.12%. This is in the better half of the industry: J5A outperforms 60.53% of its industry peers.
J5A's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 43.73%, J5A is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
J5A's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 43.73% |
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), J5A is destroying value.
Compared to 1 year ago, J5A has more shares outstanding
J5A has more shares outstanding than it did 5 years ago.
The debt/assets ratio for J5A is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that J5A is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.46, J5A is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
J5A has a debt to FCF ratio of 8.63. This is a slightly negative value and a sign of low solvency as J5A would need 8.63 years to pay back of all of its debts.
J5A has a Debt to FCF ratio (8.63) which is in line with its industry peers.
J5A has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of J5A (1.02) is worse than 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.1
WACC6.41%
2.3 Liquidity
J5A has a Current Ratio of 0.84. This is a bad value and indicates that J5A is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.84, J5A is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that J5A may have some problems paying its short term obligations.
J5A has a Quick ratio (0.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
J5A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.52%, which is quite impressive.
J5A shows a decrease in Revenue. In the last year, the revenue decreased by -4.84%.
The Revenue has been growing by 28.68% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)127.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%275%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%1.02%
3.2 Future
J5A is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.44% yearly.
J5A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.12% yearly.
EPS Next Y71.03%
EPS Next 2Y41.49%
EPS Next 3Y26.93%
EPS Next 5Y23.44%
Revenue Next Year-3.96%
Revenue Next 2Y-1.62%
Revenue Next 3Y-0.51%
Revenue Next 5Y-0.12%
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 38.96, which means the current valuation is very expensive for J5A.
Based on the Price/Earnings ratio, J5A is valued a bit cheaper than the industry average as 73.68% of the companies are valued more expensively.
J5A is valuated rather expensively when we compare the Price/Earnings ratio to 26.87, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6737.19 indicates a quite expensive valuation of J5A.
J5A's Price/Forward Earnings is on the same level as the industry average.
J5A's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.96 | ||
| Fwd PE | 6737.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, J5A is valued cheaply inside the industry as 86.84% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, J5A is valued cheaply inside the industry as 81.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.75 | ||
| EV/EBITDA | 3.1 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
J5A's earnings are expected to grow with 26.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y41.49%
EPS Next 3Y26.93%
5. Dividend
5.1 Amount
J5A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:J5A (8/15/2025, 7:00:00 PM)
10.13
-0.04 (-0.37%)
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 Cap25.06B
Analysts74.84
Price Target12.46 (23%)
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)0
Avg EPS beat(2)-755.54%
Min EPS beat(2)-1474.18%
Max EPS beat(2)-36.9%
EPS beat(4)1
Avg EPS beat(4)-353.02%
Min EPS beat(4)-1474.18%
Max EPS beat(4)157.73%
EPS beat(8)1
Avg EPS beat(8)-500.98%
EPS beat(12)2
Avg EPS beat(12)-662.65%
EPS beat(16)4
Avg EPS beat(16)-404.59%
Revenue beat(2)0
Avg Revenue beat(2)-4.99%
Min Revenue beat(2)-7.39%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-4.31%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)-2.58%
Revenue beat(8)0
Avg Revenue beat(8)-3.15%
Revenue beat(12)0
Avg Revenue beat(12)-4.56%
Revenue beat(16)2
Avg Revenue beat(16)-6.85%
PT rev (1m)3.77%
PT rev (3m)9.54%
EPS NQ rev (1m)2.05%
EPS NQ rev (3m)9.94%
EPS NY rev (1m)0%
EPS NY rev (3m)22.77%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.96 | ||
| Fwd PE | 6737.19 | ||
| P/S | 0.76 | ||
| P/FCF | 6.75 | ||
| P/OCF | 5.48 | ||
| P/B | 0.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.1 |
EPS(TTM)0.26
EY2.57%
EPS(NY)0
Fwd EY0.01%
FCF(TTM)1.5
FCFY14.81%
OCF(TTM)1.85
OCFY18.24%
SpS13.26
BVpS11.7
TBVpS-14.44
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.62% | ||
| ROE | -31.91% | ||
| ROCE | 0.94% | ||
| ROIC | 0.66% | ||
| ROICexc | 0.69% | ||
| ROICexgc | 8.25% | ||
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 43.73% | ||
| FCFM | 11.32% |
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-Score5
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.63 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 5.15% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.46 |
F-Score5
WACC6.41%
ROIC/WACC0.1
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 Y71.03%
EPS Next 2Y41.49%
EPS Next 3Y26.93%
EPS Next 5Y23.44%
Revenue 1Y (TTM)-4.84%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%1.02%
Revenue Next Year-3.96%
Revenue Next 2Y-1.62%
Revenue Next 3Y-0.51%
Revenue Next 5Y-0.12%
EBIT growth 1Y354.55%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year200.91%
EBIT Next 3Y44.98%
EBIT Next 5Y24.17%
FCF growth 1Y101.91%
FCF growth 3Y22.22%
FCF growth 5Y7.32%
OCF growth 1Y59.49%
OCF growth 3Y24.31%
OCF growth 5Y9.6%