28.885 USD
+0.57 (+2%)
28.8 USD
-0.09 (-0.29%)
We assign a fundamental rating of 3 out of 10 to WBD. WBD was compared to 80 industry peers in the Entertainment industry. While WBD is still in line with the averages on profitability rating, there are concerns on its financial health. WBD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WBD was profitable.
WBD had a positive operating cash flow in the past year.
In multiple years WBD reported negative net income over the last 5 years.
Each year in the past 5 years WBD had a positive operating cash flow.
1.2 Ratios
WBD's Return On Assets of 0.48% is fine compared to the rest of the industry. WBD outperforms 62.50% of its industry peers.
WBD has a better Return On Equity (1.35%) than 66.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.56%, WBD is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 1.35% | ||
| ROIC | 1.56% |
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
WBD's Profit Margin of 1.28% is fine compared to the rest of the industry. WBD outperforms 65.00% of its industry peers.
WBD has a better Operating Margin (4.61%) than 66.25% of its industry peers.
WBD's Operating Margin has declined in the last couple of years.
WBD has a Gross Margin of 44.92%. This is comparable to the rest of the industry: WBD outperforms 52.50% of its industry peers.
WBD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.61% | ||
| PM (TTM) | 1.28% | ||
| GM | 44.92% |
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
WBD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WBD has more shares outstanding
The number of shares outstanding for WBD has been increased compared to 5 years ago.
WBD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.94, we must say that WBD is in the distress zone and has some risk of bankruptcy.
WBD has a Altman-Z score (0.94) which is in line with its industry peers.
WBD has a debt to FCF ratio of 8.11. This is a slightly negative value and a sign of low solvency as WBD would need 8.11 years to pay back of all of its debts.
WBD has a Debt to FCF ratio of 8.11. This is in the better half of the industry: WBD outperforms 63.75% of its industry peers.
WBD has a Debt/Equity ratio of 0.93. This is a neutral value indicating WBD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.93, WBD is not doing good in the industry: 63.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 8.11 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.16
WACC9.85%
2.3 Liquidity
WBD has a Current Ratio of 1.07. This is a normal value and indicates that WBD is financially healthy and should not expect problems in meeting its short term obligations.
WBD has a Current ratio (1.07) which is comparable to the rest of the industry.
WBD has a Quick Ratio of 1.07. This is a normal value and indicates that WBD is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.07, WBD perfoms like the industry average, outperforming 48.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
WBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 121.84%, which is quite impressive.
The Revenue has decreased by -4.33% 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)121.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-220%
Revenue 1Y (TTM)-4.33%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-6.01%
3.2 Future
The Earnings Per Share is expected to grow by 23.34% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.33% on average over the next years.
EPS Next Y139.96%
EPS Next 2Y39.8%
EPS Next 3Y19.5%
EPS Next 5Y23.34%
Revenue Next Year-5.64%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.76%
Revenue Next 5Y-0.33%
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
With a Price/Earnings ratio of 152.03, WBD can be considered very expensive at the moment.
WBD's Price/Earnings ratio is in line with the industry average.
WBD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.19.
The Forward Price/Earnings Ratio is negative for WBD. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 152.03 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WBD indicates a rather cheap valuation: WBD is cheaper than 88.75% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WBD is valued cheaply inside the industry as 88.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.31 | ||
| EV/EBITDA | 5.05 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WBD's earnings are expected to grow with 19.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y39.8%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
No dividends for WBD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
28.885
+0.57 (+2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners73.62%
Inst Owner Change0%
Ins Owners1.15%
Ins Owner Change-0.34%
Market Cap71.58B
Revenue(TTM)37.86B
Net Income(TTM)485.00M
Analysts72.31
Price Target27.78 (-3.83%)
Short Float %4.57%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)177.4%
Min EPS beat(2)-43.74%
Max EPS beat(2)398.54%
EPS beat(4)1
Avg EPS beat(4)-289.07%
Min EPS beat(4)-1474.18%
Max EPS beat(4)398.54%
EPS beat(8)2
Avg EPS beat(8)-156.34%
EPS beat(12)2
Avg EPS beat(12)-916.17%
EPS beat(16)4
Avg EPS beat(16)-379.97%
Revenue beat(2)0
Avg Revenue beat(2)-1.29%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-3.14%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-3.13%
Revenue beat(12)0
Avg Revenue beat(12)-2.79%
Revenue beat(16)1
Avg Revenue beat(16)-7.07%
PT rev (1m)20.7%
PT rev (3m)85.19%
EPS NQ rev (1m)-32.27%
EPS NQ rev (3m)-5.33%
EPS NY rev (1m)-2.26%
EPS NY rev (3m)19.96%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 152.03 | ||
| Fwd PE | N/A | ||
| P/S | 1.89 | ||
| P/FCF | 17.31 | ||
| P/OCF | 13.69 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.05 |
EPS(TTM)0.19
EY0.66%
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)1.67
FCFY5.78%
OCF(TTM)2.11
OCFY7.31%
SpS15.28
BVpS14.54
TBVpS-15.25
PEG (NY)1.09
PEG (5Y)N/A
Graham Number7.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 1.35% | ||
| ROCE | 1.98% | ||
| ROIC | 1.56% | ||
| ROICexc | 1.64% | ||
| ROICexgc | 13.46% | ||
| OM | 4.61% | ||
| PM (TTM) | 1.28% | ||
| GM | 44.92% | ||
| FCFM | 10.92% |
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 | 0.93 | ||
| Debt/FCF | 8.11 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 6.11% | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.57% | ||
| Profit Quality | 852.37% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 0.94 |
F-Score8
WACC9.85%
ROIC/WACC0.16
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)121.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-220%
EPS Next Y139.96%
EPS Next 2Y39.8%
EPS Next 3Y19.5%
EPS Next 5Y23.34%
Revenue 1Y (TTM)-4.33%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-6.01%
Revenue Next Year-5.64%
Revenue Next 2Y-3.24%
Revenue Next 3Y-1.76%
Revenue Next 5Y-0.33%
EBIT growth 1Y561.91%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year198.77%
EBIT Next 3Y44.19%
EBIT Next 5Y24.29%
FCF growth 1Y-22.48%
FCF growth 3Y22.22%
FCF growth 5Y7.32%
OCF growth 1Y-22.46%
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 of WARNER BROS DISCOVERY INC (WBD) stock?
ChartMill assigns a valuation rating of 4 / 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 152.03 and the Price/Book (PB) ratio is 1.99.
How financially healthy is WARNER BROS DISCOVERY INC?
The financial health rating of WARNER BROS DISCOVERY INC (WBD) is 3 / 10.