WEIBO CORP-SPON ADR (WB) Stock Fundamental Analysis
USA - NASDAQ:WB - US9485961018 - ADR
12.7 USD
+0.45 (+3.67%)
12.77 USD
+0.07 (+0.55%)
Overall WB gets a fundamental rating of 5 out of 10. We evaluated WB against 69 industry peers in the Interactive Media & Services industry. WB has an excellent profitability rating, but there are concerns on its financial health. WB has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WB was profitable.
WB had positive earnings in each of the past 5 years.
Each year in the past 5 years WB had a positive operating cash flow.
1.2 Ratios
WB has a better Return On Assets (5.38%) than 75.36% of its industry peers.
WB's Return On Equity of 10.44% is amongst the best of the industry. WB outperforms 82.61% of its industry peers.
WB's Return On Invested Capital of 6.69% is fine compared to the rest of the industry. WB outperforms 79.71% of its industry peers.
WB had an Average Return On Invested Capital over the past 3 years of 6.24%. This is significantly below the industry average of 12.98%.
The last Return On Invested Capital (6.69%) for WB is above the 3 year average (6.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 10.44% | ||
| ROIC | 6.69% |
ROA(3y)3.51%
ROA(5y)4.23%
ROE(3y)7.1%
ROE(5y)8.87%
ROIC(3y)6.24%
ROIC(5y)6.99%
1.3 Margins
WB has a better Profit Margin (20.41%) than 86.96% of its industry peers.
In the last couple of years the Profit Margin of WB has declined.
The Operating Margin of WB (28.77%) is better than 94.20% of its industry peers.
WB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 78.83%, WB is in the better half of the industry, outperforming 75.36% of the companies in the same industry.
In the last couple of years the Gross Margin of WB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.77% | ||
| PM (TTM) | 20.41% | ||
| GM | 78.83% |
OM growth 3Y-3.03%
OM growth 5Y-3.59%
PM growth 3Y-3.33%
PM growth 5Y-9.34%
GM growth 3Y-1.3%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WB is destroying value.
Compared to 1 year ago, WB has more shares outstanding
The number of shares outstanding for WB has been increased compared to 5 years ago.
Compared to 1 year ago, WB has an improved debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 0.54 indicates that WB is somewhat dependend on debt financing.
WB's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. WB is outperformed by 71.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.85
WACC7.83%
2.3 Liquidity
A Current Ratio of 2.72 indicates that WB has no problem at all paying its short term obligations.
The Current ratio of WB (2.72) is better than 63.77% of its industry peers.
WB has a Quick Ratio of 2.72. This indicates that WB is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of WB (2.72) is better than 63.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
WB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.39%, which is quite good.
WB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.53% yearly.
Looking at the last year, WB shows a decrease in Revenue. The Revenue has decreased by -0.29% in the last year.
WB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.14% yearly.
EPS 1Y (TTM)12.39%
EPS 3Y-15.31%
EPS 5Y1.53%
EPS Q2Q%-39.33%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y-8.05%
Revenue growth 5Y-0.14%
Sales Q2Q%-46.63%
3.2 Future
Based on estimates for the next years, WB will show a decrease in Earnings Per Share. The EPS will decrease by -7.90% on average per year.
WB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.29% yearly.
EPS Next Y-33.93%
EPS Next 2Y-17.78%
EPS Next 3Y-5.3%
EPS Next 5Y-7.9%
Revenue Next Year-0.17%
Revenue Next 2Y0.98%
Revenue Next 3Y1.55%
Revenue Next 5Y3.29%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.77, the valuation of WB can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of WB indicates a rather cheap valuation: WB is cheaper than 92.75% of the companies listed in the same industry.
WB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 6.26 indicates a rather cheap valuation of WB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WB indicates a rather cheap valuation: WB is cheaper than 94.20% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. WB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.77 | ||
| Fwd PE | 6.26 |
4.2 Price Multiples
WB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WB is cheaper than 81.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The decent profitability rating of WB may justify a higher PE ratio.
WB's earnings are expected to decrease with -5.30% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.13
EPS Next 2Y-17.78%
EPS Next 3Y-5.3%
5. Dividend
5.1 Amount
WB has a Yearly Dividend Yield of 6.67%, which is a nice return.
Compared to an average industry Dividend Yield of 2.89, WB pays a better dividend. On top of this WB pays more dividend than 100.00% of the companies listed in the same industry.
WB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
5.2 History
WB has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DPN/A
EPS Next 2Y-17.78%
EPS Next 3Y-5.3%
12.7
+0.45 (+3.67%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners2.53%
Inst Owner Change-3.67%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.11B
Analysts70.59
Price Target10.77 (-15.2%)
Short Float %16.94%
Short Ratio14.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
Yearly Dividend0.8
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.71%
PT rev (3m)5.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.77%
EPS NY rev (3m)-1.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.77 | ||
| Fwd PE | 6.26 | ||
| P/S | 1.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.91 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)2.66
EY20.94%
EPS(NY)2.03
Fwd EY15.96%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS7.17
BVpS14.02
TBVpS12.92
PEG (NY)N/A
PEG (5Y)3.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 10.44% | ||
| ROCE | 9.24% | ||
| ROIC | 6.69% | ||
| ROICexc | 6.69% | ||
| ROICexgc | 7.04% | ||
| OM | 28.77% | ||
| PM (TTM) | 20.41% | ||
| GM | 78.83% | ||
| FCFM | N/A |
ROA(3y)3.51%
ROA(5y)4.23%
ROE(3y)7.1%
ROE(5y)8.87%
ROIC(3y)6.24%
ROIC(5y)6.99%
ROICexc(3y)13.13%
ROICexc(5y)16.32%
ROICexgc(3y)14.68%
ROICexgc(5y)18.44%
ROCE(3y)8.62%
ROCE(5y)9.66%
ROICexcg growth 3Y-22.3%
ROICexcg growth 5Y-15.11%
ROICexc growth 3Y-20.89%
ROICexc growth 5Y-16.12%
OM growth 3Y-3.03%
OM growth 5Y-3.59%
PM growth 3Y-3.33%
PM growth 5Y-9.34%
GM growth 3Y-1.3%
GM growth 5Y-0.61%
F-ScoreN/A
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.31 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z | N/A |
F-ScoreN/A
WACC7.83%
ROIC/WACC0.85
Cap/Depr(3y)82.48%
Cap/Depr(5y)83.94%
Cap/Sales(3y)2.65%
Cap/Sales(5y)2.31%
Profit Quality(3y)328.96%
Profit Quality(5y)278.86%
High Growth Momentum
Growth
EPS 1Y (TTM)12.39%
EPS 3Y-15.31%
EPS 5Y1.53%
EPS Q2Q%-39.33%
EPS Next Y-33.93%
EPS Next 2Y-17.78%
EPS Next 3Y-5.3%
EPS Next 5Y-7.9%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y-8.05%
Revenue growth 5Y-0.14%
Sales Q2Q%-46.63%
Revenue Next Year-0.17%
Revenue Next 2Y0.98%
Revenue Next 3Y1.55%
Revenue Next 5Y3.29%
EBIT growth 1Y6.1%
EBIT growth 3Y-10.84%
EBIT growth 5Y-3.72%
EBIT Next Year12.47%
EBIT Next 3Y6.9%
EBIT Next 5Y4.83%
FCF growth 1Y-9.06%
FCF growth 3Y-9.44%
FCF growth 5Y-1.05%
OCF growth 1Y-4.89%
OCF growth 3Y-7.71%
OCF growth 5Y0.26%