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 43 industry peers in the Entertainment industry. J5A has a bad profitability rating. Also its financial health evaluation is rather negative. J5A is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
J5A had negative earnings in the past year.
In the past year J5A had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: J5A reported negative net income in multiple years.
J5A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of J5A (-10.82%) is worse than 74.42% of its industry peers.
Looking at the Return On Equity, with a value of -33.23%, J5A is doing worse than 72.09% of the companies in the same industry.
J5A has a Return On Invested Capital (0.46%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.82% | ||
| ROE | -33.23% | ||
| ROIC | 0.46% |
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 (1.46%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of J5A has declined.
The Gross Margin of J5A (43.00%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of J5A 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), J5A is destroying value.
The number of shares outstanding for J5A has been increased compared to 1 year ago.
J5A has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, J5A has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that J5A is in the distress zone and has some risk of bankruptcy.
J5A's Altman-Z score of 0.39 is on the low side compared to the rest of the industry. J5A is outperformed by 72.09% of its industry peers.
J5A has a debt to FCF ratio of 9.03. This is a negative value and a sign of low solvency as J5A would need 9.03 years to pay back of all of its debts.
J5A has a Debt to FCF ratio (9.03) which is in line with its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that J5A has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.09, J5A is doing worse than 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 9.03 | ||
| Altman-Z | 0.39 |
ROIC/WACC0.07
WACC6.75%
2.3 Liquidity
J5A has a Current Ratio of 0.89. This is a bad value and indicates that J5A is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.89, J5A perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that J5A may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, J5A perfoms like the industry average, outperforming 53.49% of the companies in the same 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.
J5A shows a decrease in Revenue. In the last year, the revenue decreased by -4.84%.
J5A 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
The Earnings Per Share is expected to grow by 23.44% on average over the next years. This is a very strong growth
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
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
The Price/Earnings Ratio is negative for J5A. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for J5A. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, J5A is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, J5A is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.78 | ||
| EV/EBITDA | 2.66 |
4.3 Compensation for Growth
A more expensive valuation may be justified as J5A's earnings are expected to grow with 28.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.43%
EPS Next 3Y28.92%
5. Dividend
5.1 Amount
J5A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:J5A (5/2/2025, 7:00:00 PM)
7.572
-0.05 (-0.72%)
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 Cap18.73B
Analysts72.73
Price Target11.6 (53.2%)
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)-8.49%
PT rev (3m)-2.29%
EPS NQ rev (1m)-10.64%
EPS NQ rev (3m)-53.66%
EPS NY rev (1m)-9.82%
EPS NY rev (3m)-70.13%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-3.91%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.54 | ||
| P/FCF | 4.78 | ||
| P/OCF | 3.93 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.66 |
EPS(TTM)-0.8
EYN/A
EPS(NY)-0.2
Fwd EYN/A
FCF(TTM)1.59
FCFY20.94%
OCF(TTM)1.93
OCFY25.43%
SpS14.08
BVpS12.19
TBVpS-15.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.82% | ||
| ROE | -33.23% | ||
| ROCE | 0.65% | ||
| ROIC | 0.46% | ||
| ROICexc | 0.49% | ||
| ROICexgc | 6.37% | ||
| 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 | 0.39 |
F-Score4
WACC6.75%
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%