WEIBO CORP-SPON ADR (WB) Stock Fundamental Analysis
NASDAQ:WB - Nasdaq - US9485961018 - ADR - Currency: USD
Overall WB gets a fundamental rating of 4 out of 10. We evaluated WB against 70 industry peers in the Interactive Media & Services industry. WB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past 5 years WB always reported a positive cash flow from operatings.
1.2 Ratios
WB has a Return On Assets of 5.38%. This is in the better half of the industry: WB outperforms 68.57% of its industry peers.
WB has a Return On Equity of 10.44%. This is in the better half of the industry: WB outperforms 80.00% of its industry peers.
WB has a Return On Invested Capital of 6.69%. This is in the better half of the industry: WB outperforms 78.57% 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 11.83%.
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
The Profit Margin of WB (20.41%) is better than 87.14% of its industry peers.
WB's Profit Margin has declined in the last couple of years.
WB has a Operating Margin of 28.77%. This is amongst the best in the industry. WB outperforms 94.29% of its industry peers.
WB's Operating Margin has declined in the last couple of years.
WB's Gross Margin of 78.83% is fine compared to the rest of the industry. WB outperforms 74.29% of its industry peers.
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
WB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WB has been increased compared to 1 year ago.
The number of shares outstanding for WB has been increased compared to 5 years ago.
The debt/assets ratio for WB has been reduced compared to a year ago.
2.2 Solvency
A Debt/Equity ratio of 0.54 indicates that WB is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, WB is doing worse than 72.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC7.74%
2.3 Liquidity
A Current Ratio of 2.72 indicates that WB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.72, WB is in line with its industry, outperforming 60.00% of the companies in the same industry.
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 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.39% over the past year.
The Earnings Per Share has been growing slightly by 1.53% on average over the past years.
WB shows a decrease in Revenue. In the last year, the revenue decreased by -0.29%.
The Revenue has been decreasing by -0.14% on average over the past years.
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
The Earnings Per Share is expected to decrease by -7.58% on average over the next years.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y-32.74%
EPS Next 2Y-17.63%
EPS Next 3Y-11.75%
EPS Next 5Y-7.58%
Revenue Next Year0.84%
Revenue Next 2Y1.34%
Revenue Next 3Y1.42%
Revenue Next 5Y3.6%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WB is valuated cheaply with a Price/Earnings ratio of 4.34.
Compared to the rest of the industry, the Price/Earnings ratio of WB indicates a rather cheap valuation: WB is cheaper than 94.29% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.87. WB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.68, the valuation of WB can be described as very cheap.
Based on the Price/Forward Earnings ratio, WB is valued cheaply inside the industry as 95.71% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.34. WB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 5.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WB is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
WB has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as WB's earnings are expected to decrease with -11.75% in the coming years.
PEG (NY)N/A
PEG (5Y)2.85
EPS Next 2Y-17.63%
EPS Next 3Y-11.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.90%, WB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.80, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.9% |
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-17.63%
EPS Next 3Y-11.75%
11.55
+0.11 (+0.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners2.53%
Inst Owner Change-1.48%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.83B
Analysts70.59
Price Target10.18 (-11.86%)
Short Float %17.39%
Short Ratio14.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.9% |
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)-2.24%
PT rev (3m)-2.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-41.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-28.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.34 | ||
| Fwd PE | 5.68 | ||
| P/S | 1.61 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.82 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)2.66
EY23.03%
EPS(NY)2.03
Fwd EY17.62%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS7.17
BVpS14.02
TBVpS12.92
PEG (NY)N/A
PEG (5Y)2.85
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
WACC7.74%
ROIC/WACC0.86
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-32.74%
EPS Next 2Y-17.63%
EPS Next 3Y-11.75%
EPS Next 5Y-7.58%
Revenue 1Y (TTM)-0.29%
Revenue growth 3Y-8.05%
Revenue growth 5Y-0.14%
Sales Q2Q%-46.63%
Revenue Next Year0.84%
Revenue Next 2Y1.34%
Revenue Next 3Y1.42%
Revenue Next 5Y3.6%
EBIT growth 1Y6.1%
EBIT growth 3Y-10.84%
EBIT growth 5Y-3.72%
EBIT Next Year12.47%
EBIT Next 3Y6.9%
EBIT Next 5Y5.06%
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%