WEIBO CORP-SPON ADR (WB) Stock Fundamental Analysis
NASDAQ:WB - Nasdaq - US9485961018 - ADR - Currency: USD
Taking everything into account, WB scores 5 out of 10 in our fundamental rating. WB was compared to 71 industry peers in the Interactive Media & Services industry. While WB belongs to the best of the industry regarding profitability, 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
WB had positive earnings in the past year.
In the past 5 years WB has always been profitable.
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 71.83% of its industry peers.
WB has a better Return On Equity (10.44%) than 83.10% of its industry peers.
WB's Return On Invested Capital of 6.69% is fine compared to the rest of the industry. WB outperforms 78.87% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WB is significantly below the industry average of 12.03%.
The 3 year average ROIC (6.24%) for WB is below the current ROIC(6.69%), indicating increased profibility in the last year.
| 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 Profit Margin of 20.41%. This is amongst the best in the industry. WB outperforms 88.73% of its industry peers.
In the last couple of years the Profit Margin of WB has declined.
WB has a better Operating Margin (28.77%) than 94.37% of its industry peers.
WB's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 78.83%, WB is doing good in the industry, outperforming 73.24% of the companies in the same industry.
WB's Gross Margin has been stable in the last couple of years.
| 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.
WB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WB has been reduced compared to a year ago.
2.2 Solvency
WB has a Debt/Equity ratio of 0.54. This is a neutral value indicating 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 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.97
WACC6.87%
2.3 Liquidity
WB has a Current Ratio of 2.72. This indicates that WB is financially healthy and has no problem in meeting its short term obligations.
WB has a Current ratio of 2.72. This is in the better half of the industry: WB outperforms 64.79% 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.
WB has a better Quick ratio (2.72) than 66.20% 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 53.85%, which is quite impressive.
The Earnings Per Share has been growing slightly by 1.53% on average over the past years.
The Revenue has been growing slightly by 0.84% in the past year.
The Revenue has been decreasing by -0.14% on average over the past years.
EPS 1Y (TTM)53.85%
EPS 3Y-15.31%
EPS 5Y1.53%
EPS Q2Q%9.76%
Revenue 1Y (TTM)0.84%
Revenue growth 3Y-8.05%
Revenue growth 5Y-0.14%
Sales Q2Q%0.34%
3.2 Future
WB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.58% yearly.
Based on estimates for the next years, WB will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y-32.74%
EPS Next 2Y-17.63%
EPS Next 3Y-11.75%
EPS Next 5Y-7.58%
Revenue Next Year1.07%
Revenue Next 2Y1.67%
Revenue Next 3Y1.38%
Revenue Next 5Y3.6%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 3.09, the valuation of WB can be described as very cheap.
Based on the Price/Earnings ratio, WB is valued cheaply inside the industry as 95.77% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.35, WB is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.61, the valuation of WB can be described as very cheap.
WB's Price/Forward Earnings ratio is rather cheap when compared to the industry. WB is cheaper than 95.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WB to the average of the S&P500 Index (22.19), we can say WB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.09 | ||
| Fwd PE | 4.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WB is valued cheaper than 84.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.39 |
4.3 Compensation for Growth
The decent profitability rating of WB 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)2.02
EPS Next 2Y-17.63%
EPS Next 3Y-11.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.70%, WB is a good candidate for dividend investing.
WB's Dividend Yield is rather good when compared to the industry average which is at 2.88. WB pays more dividend than 100.00% of the companies in the same industry.
WB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.7% |
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%
9.39
-0.11 (-1.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners2.53%
Inst Owner Change-9.76%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.30B
Analysts71.25
Price Target10.42 (10.97%)
Short Float %17.86%
Short Ratio10.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.7% |
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)-3.29%
PT rev (3m)0.22%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.29%
EPS NY rev (3m)-41.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-28.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.09 | ||
| Fwd PE | 4.61 | ||
| P/S | 1.31 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.67 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 7.39 |
EPS(TTM)3.04
EY32.37%
EPS(NY)2.03
Fwd EY21.67%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS7.17
BVpS14.02
TBVpS12.92
PEG (NY)N/A
PEG (5Y)2.02
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
WACC6.87%
ROIC/WACC0.97
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)53.85%
EPS 3Y-15.31%
EPS 5Y1.53%
EPS Q2Q%9.76%
EPS Next Y-32.74%
EPS Next 2Y-17.63%
EPS Next 3Y-11.75%
EPS Next 5Y-7.58%
Revenue 1Y (TTM)0.84%
Revenue growth 3Y-8.05%
Revenue growth 5Y-0.14%
Sales Q2Q%0.34%
Revenue Next Year1.07%
Revenue Next 2Y1.67%
Revenue Next 3Y1.38%
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%