W gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. Both the profitability and financial health of W have multiple concerns. W is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

W had positive earnings in the past year.
In the past year W had a positive cash flow from operations.
In the past 5 years W reported 4 times negative net income.
W had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

W's Return On Assets of -10.43% is on the low side compared to the rest of the industry. W is outperformed by 75.41% of its industry peers.

		Industry Rank	Sector Rank
ROA	-10.43%
ROE	N/A
ROIC	N/A

ROA(3y)-24.22%

ROA(5y)-14.29%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Gross Margin of W (30.19%) is worse than 68.03% of its industry peers.
In the last couple of years the Gross Margin of W has grown nicely.
W does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	30.19%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y2.01%

GM growth 5Y5.09%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

W does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for W has been increased compared to 1 year ago.
Compared to 5 years ago, W has more shares outstanding
The debt/assets ratio for W has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 3.01 indicates that W is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.01, W is in the better half of the industry, outperforming 69.67% of the companies in the same industry.
W has a debt to FCF ratio of 10.29. This is a negative value and a sign of low solvency as W would need 10.29 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.29, W perfoms like the industry average, outperforming 54.92% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	10.29
Altman-Z	3.01

ROIC/WACCN/A

WACC9.01%

2.3 Liquidity

W has a Current Ratio of 0.74. This is a bad value and indicates that W is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.74, W is not doing good in the industry: 87.70% of the companies in the same industry are doing better.
W has a Quick Ratio of 0.74. This is a bad value and indicates that W is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.71, W is doing good in the industry, outperforming 61.48% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.74
Quick Ratio	0.71

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 446.15% over the past year.
The earnings per share for W have been decreasing by -61.54% on average. This is quite bad
The Revenue has been growing slightly by 3.35% in the past year.
Measured over the past years, W shows a small growth in Revenue. The Revenue has been growing by 5.36% on average per year.

EPS 1Y (TTM)446.15%

EPS 3Y-61.54%

EPS 5YN/A

EPS Q2Q%218.18%

Revenue 1Y (TTM)3.35%

Revenue growth 3Y-4.74%

Revenue growth 5Y5.36%

Sales Q2Q%8.08%

3.2 Future

The Earnings Per Share is expected to grow by 118.72% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.32% on average over the next years.

EPS Next Y1812.8%

EPS Next 2Y392.58%

EPS Next 3Y216.7%

EPS Next 5Y118.72%

Revenue Next Year5.31%

Revenue Next 2Y5.3%

Revenue Next 3Y5.49%

Revenue Next 5Y5.32%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 78.27, the valuation of W can be described as expensive.
W's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of W to the average of the S&P500 Index (28.87), we can say W is valued expensively.
The Price/Forward Earnings ratio is 38.18, which means the current valuation is very expensive for W.
W's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of W to the average of the S&P500 Index (25.96), we can say W is valued slightly more expensively.

		Industry Rank	Sector Rank
PE	78.27
Fwd PE	38.18

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of W indicates a slightly more expensive valuation: W is more expensive than 69.67% of the companies listed in the same industry.
W's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	50.65
EV/EBITDA	59.99

4.3 Compensation for Growth

W's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as W's earnings are expected to grow with 216.70% in the coming years.