WARNER BROS DISCOVERY INC (WBD) Stock Fundamental Analysis
USA - NASDAQ:WBD - US9344231041 - Common Stock
22.45 USD
+0.83 (+3.84%)
22.4001 USD
-0.05 (-0.22%)
We assign a fundamental rating of 3 out of 10 to WBD. WBD was compared to 80 industry peers in the Entertainment industry. WBD has a medium profitability rating, but doesn't score so well on its financial health evaluation. WBD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WBD was profitable.
WBD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WBD reported negative net income in multiple years.
In the past 5 years WBD always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.75%, WBD perfoms like the industry average, outperforming 58.75% of the companies in the same industry.
WBD has a better Return On Equity (2.13%) than 65.00% of its industry peers.
WBD has a Return On Invested Capital (1.25%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.13% | ||
| ROIC | 1.25% |
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
With a decent Profit Margin value of 2.00%, WBD is doing good in the industry, outperforming 62.50% of the companies in the same industry.
WBD's Operating Margin of 3.65% is fine compared to the rest of the industry. WBD outperforms 63.75% of its industry peers.
In the last couple of years the Operating Margin of WBD has declined.
WBD's Gross Margin of 44.43% is in line compared to the rest of the industry. WBD outperforms 53.75% of its industry peers.
WBD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.65% | ||
| PM (TTM) | 2% | ||
| GM | 44.43% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WBD is destroying value.
The number of shares outstanding for WBD has been increased compared to 1 year ago.
The number of shares outstanding for WBD has been increased compared to 5 years ago.
The debt/assets ratio for WBD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that WBD is in the distress zone and has some risk of bankruptcy.
WBD's Altman-Z score of 0.77 is in line compared to the rest of the industry. WBD outperforms 42.50% of its industry peers.
WBD has a debt to FCF ratio of 8.52. This is a slightly negative value and a sign of low solvency as WBD would need 8.52 years to pay back of all of its debts.
WBD has a Debt to FCF ratio of 8.52. This is comparable to the rest of the industry: WBD outperforms 56.25% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that WBD is somewhat dependend on debt financing.
WBD's Debt to Equity ratio of 0.95 is on the low side compared to the rest of the industry. WBD is outperformed by 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.19
WACC6.6%
2.3 Liquidity
A Current Ratio of 1.04 indicates that WBD should not have too much problems paying its short term obligations.
WBD's Current ratio of 1.04 is in line compared to the rest of the industry. WBD outperforms 47.50% of its industry peers.
A Quick Ratio of 1.04 indicates that WBD should not have too much problems paying its short term obligations.
WBD's Quick ratio of 1.04 is in line compared to the rest of the industry. WBD outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
WBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.52%, which is quite impressive.
The Revenue has decreased by -3.74% in the past year.
WBD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.68% yearly.
EPS 1Y (TTM)127.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%275%
Revenue 1Y (TTM)-3.74%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%1.02%
3.2 Future
Based on estimates for the next years, WBD will show a very strong growth in Earnings Per Share. The EPS will grow by 23.44% on average per year.
Based on estimates for the next years, WBD will show a decrease in Revenue. The Revenue will decrease by -0.12% on average per year.
EPS Next Y133.97%
EPS Next 2Y35.73%
EPS Next 3Y25.8%
EPS Next 5Y23.44%
Revenue Next Year-5%
Revenue Next 2Y-2.29%
Revenue Next 3Y-1.29%
Revenue Next 5Y-0.12%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 74.83, which means the current valuation is very expensive for WBD.
66.25% of the companies in the same industry are more expensive than WBD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WBD to the average of the S&P500 Index (26.10), we can say WBD is valued expensively.
The Forward Price/Earnings Ratio is negative for WBD. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.83 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WBD is valued cheaply inside the industry as 91.25% of the companies are valued more expensively.
91.25% of the companies in the same industry are more expensive than WBD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.67 | ||
| EV/EBITDA | 4.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WBD's earnings are expected to grow with 25.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y35.73%
EPS Next 3Y25.8%
5. Dividend
5.1 Amount
No dividends for WBD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.45
+0.83 (+3.84%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners73.13%
Inst Owner Change1.04%
Ins Owners1.17%
Ins Owner Change0.04%
Market Cap55.58B
Revenue(TTM)38.44B
Net Income(TTM)768.00M
Analysts73.55
Price Target15 (-33.18%)
Short Float %3.29%
Short Ratio1.38
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)180.82%
Min EPS beat(2)-36.9%
Max EPS beat(2)398.54%
EPS beat(4)2
Avg EPS beat(4)-238.7%
Min EPS beat(4)-1474.18%
Max EPS beat(4)398.54%
EPS beat(8)2
Avg EPS beat(8)-447.78%
EPS beat(12)2
Avg EPS beat(12)-941.6%
EPS beat(16)4
Avg EPS beat(16)-379.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.93%
Min Revenue beat(2)-7.39%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-3.3%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-2.99%
Revenue beat(12)0
Avg Revenue beat(12)-3.13%
Revenue beat(16)1
Avg Revenue beat(16)-6.98%
PT rev (1m)2.18%
PT rev (3m)5.87%
EPS NQ rev (1m)29.55%
EPS NQ rev (3m)-190.02%
EPS NY rev (1m)2%
EPS NY rev (3m)217.26%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.83 | ||
| Fwd PE | N/A | ||
| P/S | 1.45 | ||
| P/FCF | 13.67 | ||
| P/OCF | 10.9 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.08 |
EPS(TTM)0.3
EY1.34%
EPS(NY)-0.14
Fwd EYN/A
FCF(TTM)1.64
FCFY7.31%
OCF(TTM)2.06
OCFY9.17%
SpS15.53
BVpS14.56
TBVpS-15.6
PEG (NY)0.56
PEG (5Y)N/A
Graham Number9.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.13% | ||
| ROCE | 1.58% | ||
| ROIC | 1.25% | ||
| ROICexc | 1.32% | ||
| ROICexgc | 12.15% | ||
| OM | 3.65% | ||
| PM (TTM) | 2% | ||
| GM | 44.43% | ||
| FCFM | 10.57% |
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
ROICexgc growth 3Y-43.23%
ROICexgc 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-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 5.44% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 24.98% | ||
| Profit Quality | 529.3% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 0.77 |
F-Score8
WACC6.6%
ROIC/WACC0.19
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)127.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%275%
EPS Next Y133.97%
EPS Next 2Y35.73%
EPS Next 3Y25.8%
EPS Next 5Y23.44%
Revenue 1Y (TTM)-3.74%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%1.02%
Revenue Next Year-5%
Revenue Next 2Y-2.29%
Revenue Next 3Y-1.29%
Revenue Next 5Y-0.12%
EBIT growth 1Y692.83%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year197.32%
EBIT Next 3Y44.1%
EBIT Next 5Y24.93%
FCF growth 1Y31.89%
FCF growth 3Y22.22%
FCF growth 5Y7.32%
OCF growth 1Y17.11%
OCF growth 3Y24.31%
OCF growth 5Y9.6%
WARNER BROS DISCOVERY INC / WBD FAQ
What is the fundamental rating for WBD stock?
ChartMill assigns a fundamental rating of 3 / 10 to WBD.
What is the valuation status for WBD stock?
ChartMill assigns a valuation rating of 5 / 10 to WARNER BROS DISCOVERY INC (WBD). This can be considered as Fairly Valued.
How profitable is WARNER BROS DISCOVERY INC (WBD) stock?
WARNER BROS DISCOVERY INC (WBD) has a profitability rating of 4 / 10.
What are the PE and PB ratios of WARNER BROS DISCOVERY INC (WBD) stock?
The Price/Earnings (PE) ratio for WARNER BROS DISCOVERY INC (WBD) is 74.83 and the Price/Book (PB) ratio is 1.54.