WARNER BROS DISCOVERY INC (WBD) Stock Fundamental Analysis
USA - NASDAQ:WBD - US9344231041 - Common Stock
18.99 USD
-0.25 (-1.3%)
19.1 USD
+0.11 (+0.58%)
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 is not valued too expensively and it also shows a decent 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.
The reported net income has been mixed in the past 5 years: WBD reported negative net income in multiple years.
Each year in the past 5 years WBD had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WBD (0.75%) is comparable to the rest of the industry.
With a decent Return On Equity value of 2.13%, WBD is doing good in the industry, outperforming 65.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.25%, WBD is in line with its industry, outperforming 60.00% of the companies in the same 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
The Profit Margin of WBD (2.00%) is better than 63.75% of its industry peers.
Looking at the Operating Margin, with a value of 3.65%, WBD is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
WBD's Operating Margin has declined in the last couple of years.
The Gross Margin of WBD (44.43%) is comparable to the rest of the industry.
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
WBD 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 WBD has been increased compared to 1 year ago.
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
WBD has an Altman-Z score of 0.71. This is a bad value and indicates that WBD is not financially healthy and even has some risk of bankruptcy.
WBD has a Altman-Z score of 0.71. This is comparable to the rest of the industry: WBD outperforms 41.25% of its industry peers.
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.
WBD has a Debt to FCF ratio (8.52) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.95 indicates that WBD is somewhat dependend on debt financing.
WBD has a worse Debt to Equity ratio (0.95) than 66.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.17
WACC7.37%
2.3 Liquidity
A Current Ratio of 1.04 indicates that WBD should not have too much problems paying its short term obligations.
WBD has a Current ratio (1.04) which is comparable to the rest of the industry.
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.
The Quick ratio of WBD (1.04) is comparable to the rest of the industry.
| 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.
The Revenue has decreased by -3.74% in the past year.
The Revenue has been growing by 28.68% on average over the past years. This is a very strong growth!
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
The Revenue is expected to decrease by -0.12% on average over the next years.
EPS Next Y133.31%
EPS Next 2Y36.73%
EPS Next 3Y24.47%
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 63.30 indicates a quite expensive valuation of WBD.
70.00% of the companies in the same industry are more expensive than WBD, based on the Price/Earnings ratio.
WBD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.86.
WBD is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.3 | ||
| Fwd PE | N/A |
4.2 Price Multiples
WBD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WBD is cheaper than 92.50% of the companies in the same industry.
92.50% 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 | 11.57 | ||
| EV/EBITDA | 3.79 |
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 24.47% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y36.73%
EPS Next 3Y24.47%
5. Dividend
5.1 Amount
No dividends for WBD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.99
-0.25 (-1.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners73.13%
Inst Owner Change3.68%
Ins Owners1.17%
Ins Owner Change0.42%
Market Cap47.01B
Analysts74.84
Price Target14.68 (-22.7%)
Short Float %3.97%
Short Ratio1.34
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)0.3%
PT rev (3m)6.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6040.71%
EPS NY rev (1m)-11.03%
EPS NY rev (3m)187.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.3 | ||
| Fwd PE | N/A | ||
| P/S | 1.22 | ||
| P/FCF | 11.57 | ||
| P/OCF | 9.22 | ||
| P/B | 1.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.79 |
EPS(TTM)0.3
EY1.58%
EPS(NY)-0.12
Fwd EYN/A
FCF(TTM)1.64
FCFY8.65%
OCF(TTM)2.06
OCFY10.84%
SpS15.53
BVpS14.56
TBVpS-15.6
PEG (NY)0.47
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 | 0.71 |
F-Score8
WACC7.37%
ROIC/WACC0.17
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 Y133.31%
EPS Next 2Y36.73%
EPS Next 3Y24.47%
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 Year197.32%
EBIT Next 3Y44.1%
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%