WARNER BROS DISCOVERY INC (WBD) Stock Fundamental Analysis
NASDAQ:WBD - US9344231041 - Common Stock
12.05 USD
+0.46 (+4.01%)
12.04 USD
-0.01 (-0.08%)
WBD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 75 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WBD had positive earnings in the past year.
WBD had a positive operating cash flow in the past year.
In multiple years WBD reported negative net income over the last 5 years.
In the past 5 years WBD always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 0.75%, WBD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
WBD's Return On Equity of 2.13% is fine compared to the rest of the industry. WBD outperforms 72.00% of its industry peers.
WBD has a Return On Invested Capital of 1.25%. This is in the better half of the industry: WBD outperforms 64.00% of its industry peers.
| 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 70.67% of the companies in the same industry.
With a decent Operating Margin value of 3.65%, WBD is doing good in the industry, outperforming 69.33% of the companies in the same industry.
In the last couple of years the Operating Margin of WBD has declined.
WBD has a Gross Margin of 44.43%. This is comparable to the rest of the industry: WBD outperforms 52.00% of its industry peers.
In the last couple of years the Gross Margin of WBD has declined.
| 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
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
WBD has more shares outstanding than it did 5 years ago.
WBD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that WBD is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WBD (0.55) is comparable to the rest of the industry.
The Debt to FCF ratio of WBD is 8.52, which is on the high side as it means it would take WBD, 8.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WBD (8.52) is better than 65.33% of its industry peers.
WBD has a Debt/Equity ratio of 0.95. This is a neutral value indicating WBD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, WBD is not doing good in the industry: 61.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.18
WACC6.86%
2.3 Liquidity
WBD has a Current Ratio of 1.04. This is a normal value and indicates that WBD is financially healthy and should not expect problems in meeting its short term obligations.
WBD's Current ratio of 1.04 is in line compared to the rest of the industry. WBD outperforms 54.67% of its industry peers.
WBD has a Quick Ratio of 1.04. This is a normal value and indicates that WBD is financially healthy and should not expect problems in meeting its short term obligations.
WBD's Quick ratio of 1.04 is in line compared to the rest of the industry. WBD outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 127.52% over the past year.
WBD shows a decrease in Revenue. In the last year, the revenue decreased by -3.74%.
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
The Earnings Per Share is expected to grow by 23.44% on average over the next years. This is a very strong growth
WBD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.12% yearly.
EPS Next Y137.44%
EPS Next 2Y36.95%
EPS Next 3Y22.88%
EPS Next 5Y23.44%
Revenue Next Year-5.41%
Revenue Next 2Y-2.53%
Revenue Next 3Y-1.27%
Revenue Next 5Y-0.12%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 40.17 indicates a quite expensive valuation of WBD.
Based on the Price/Earnings ratio, WBD is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.24, WBD is valued a bit more expensive.
WBD is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.17 | ||
| Fwd PE | N/A |
4.2 Price Multiples
93.33% of the companies in the same industry are more expensive than WBD, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WBD is valued cheaper than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| EV/EBITDA | 2.92 |
4.3 Compensation for Growth
WBD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as WBD's earnings are expected to grow with 22.88% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y36.95%
EPS Next 3Y22.88%
5. Dividend
5.1 Amount
No dividends for WBD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.05
+0.46 (+4.01%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners70.78%
Inst Owner Change3.69%
Ins Owners1.16%
Ins Owner Change1.4%
Market Cap29.83B
Analysts74.84
Price Target14.64 (21.49%)
Short Float %4.31%
Short Ratio1.52
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)3.31%
PT rev (3m)11.61%
EPS NQ rev (1m)-168.8%
EPS NQ rev (3m)-3415.6%
EPS NY rev (1m)229.22%
EPS NY rev (3m)199.8%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)-3.97%
Revenue NY rev (1m)-1.46%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.17 | ||
| Fwd PE | N/A | ||
| P/S | 0.78 | ||
| P/FCF | 7.34 | ||
| P/OCF | 5.85 | ||
| P/B | 0.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.92 |
EPS(TTM)0.3
EY2.49%
EPS(NY)-0.11
Fwd EYN/A
FCF(TTM)1.64
FCFY13.63%
OCF(TTM)2.06
OCFY17.09%
SpS15.53
BVpS14.56
TBVpS-15.6
PEG (NY)0.29
PEG (5Y)N/A
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
ROICexcg growth 3Y-43.23%
ROICexcg 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 | 0.55 |
F-Score8
WACC6.86%
ROIC/WACC0.18
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 Y137.44%
EPS Next 2Y36.95%
EPS Next 3Y22.88%
EPS Next 5Y23.44%
Revenue 1Y (TTM)-3.74%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%1.02%
Revenue Next Year-5.41%
Revenue Next 2Y-2.53%
Revenue Next 3Y-1.27%
Revenue Next 5Y-0.12%
EBIT growth 1Y692.83%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year200.91%
EBIT Next 3Y44.98%
EBIT Next 5Y24.17%
FCF growth 1Y31.89%
FCF growth 3Y22.22%
FCF growth 5Y7.32%
OCF growth 1Y17.11%
OCF growth 3Y24.31%
OCF growth 5Y9.6%