28.47 USD
-0.06 (-0.21%)
28.31 USD
-0.16 (-0.56%)
WBD gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. There are concerns on the financial health of WBD while its profitability can be described as average. 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.
In the past year WBD had a positive cash flow from operations.
In multiple years WBD reported negative net income over the last 5 years.
WBD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WBD (0.48%) is better than 62.50% of its industry peers.
WBD's Return On Equity of 1.35% is fine compared to the rest of the industry. WBD outperforms 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
The Profit Margin of WBD (1.28%) is better than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WBD is destroying value.
Compared to 1 year ago, WBD has more shares outstanding
Compared to 5 years ago, WBD has more shares outstanding
Compared to 1 year ago, WBD has a worse debt to assets ratio.
2.2 Solvency
WBD has an Altman-Z score of 0.94. This is a bad value and indicates that WBD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.94, WBD perfoms like the industry average, outperforming 46.25% of the companies in the same industry.
The Debt to FCF ratio of WBD is 8.11, which is on the high side as it means it would take WBD, 8.11 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 8.11, WBD is doing good in the industry, outperforming 63.75% of the companies in the same industry.
A Debt/Equity ratio of 0.93 indicates that WBD is somewhat dependend on debt financing.
WBD has a Debt to Equity ratio of 0.93. This is in the lower half of the industry: WBD underperforms 63.75% of its industry peers.
| 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.
The Current ratio of WBD (1.07) is comparable to the rest of the industry.
A Quick Ratio of 1.07 indicates that WBD should not have too much problems paying its short term obligations.
WBD has a Quick ratio of 1.07. This is comparable to the rest of the industry: WBD outperforms 48.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 121.84% over the past year.
Looking at the last year, WBD shows a decrease in Revenue. The Revenue has decreased by -4.33% in the last 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
Based on estimates for the next years, WBD will show a very strong growth in Earnings Per Share. The EPS will grow by 23.34% on average per year.
WBD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.33% yearly.
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
A Price/Earnings ratio of 149.84 indicates a quite expensive valuation of WBD.
Compared to the rest of the industry, the Price/Earnings ratio of WBD is on the same level as its industry peers.
When comparing the Price/Earnings ratio of WBD to the average of the S&P500 Index (27.17), 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 | 149.84 | ||
| Fwd PE | N/A |
4.2 Price Multiples
88.75% of the companies in the same industry are more expensive than WBD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WBD indicates a rather cheap valuation: WBD is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 5.07 |
4.3 Compensation for Growth
WBD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as WBD's earnings are expected to grow with 19.50% in the coming years.
PEG (NY)1.07
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% |
28.47
-0.06 (-0.21%)
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 Cap70.55B
Revenue(TTM)37.86B
Net Income(TTM)485.00M
Analysts76.13
Price Target27.78 (-2.42%)
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 | 149.84 | ||
| Fwd PE | N/A | ||
| P/S | 1.86 | ||
| P/FCF | 17.07 | ||
| P/OCF | 13.49 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.07 |
EPS(TTM)0.19
EY0.67%
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)1.67
FCFY5.86%
OCF(TTM)2.11
OCFY7.41%
SpS15.28
BVpS14.54
TBVpS-15.25
PEG (NY)1.07
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 149.84 and the Price/Book (PB) ratio is 1.96.
How financially healthy is WARNER BROS DISCOVERY INC?
The financial health rating of WARNER BROS DISCOVERY INC (WBD) is 3 / 10.