WARNER BROS DISCOVERY INC (WBD) Stock Fundamental Analysis
NASDAQ:WBD - Nasdaq - US9344231041 - Common Stock - Currency: USD
Overall WBD gets a fundamental rating of 3 out of 10. We evaluated WBD against 72 industry peers in the Entertainment industry. WBD may be in some trouble as it scores bad on both profitability and health. WBD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WBD had negative earnings in the past year.
In the past year WBD had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WBD reported negative net income in multiple years.
WBD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WBD (-10.62%) is worse than 65.28% of its industry peers.
WBD has a Return On Equity (-31.91%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 0.74%, WBD is doing good in the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.62% | ||
| ROE | -31.91% | ||
| ROIC | 0.74% |
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 has a better Operating Margin (2.12%) than 61.11% of its industry peers.
WBD's Operating Margin has declined in the last couple of years.
WBD has a Gross Margin (43.73%) which is in line with its industry peers.
In the last couple of years the Gross Margin of WBD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 43.73% |
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.
WBD has more shares outstanding than it did 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 0.43, we must say that WBD is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.43, WBD is in line with its industry, outperforming 41.67% of the companies in the same industry.
WBD has a debt to FCF ratio of 8.63. This is a slightly negative value and a sign of low solvency as WBD would need 8.63 years to pay back of all of its debts.
WBD has a better Debt to FCF ratio (8.63) than 62.50% of its industry peers.
WBD has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
WBD has a Debt to Equity ratio of 1.02. This is in the lower half of the industry: WBD underperforms 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | 0.43 |
ROIC/WACC0.1
WACC7.22%
2.3 Liquidity
A Current Ratio of 0.84 indicates that WBD may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.84, WBD is in line with its industry, outperforming 45.83% of the companies in the same industry.
WBD has a Quick Ratio of 0.84. This is a bad value and indicates that WBD is not financially healthy enough and could expect problems in meeting its short term obligations.
WBD has a Quick ratio of 0.84. This is comparable to the rest of the industry: WBD outperforms 48.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.44% over the past year.
The Revenue has decreased by -5.51% in the past year.
Measured over the past years, WBD shows a very strong growth in Revenue. The Revenue has been growing by 28.68% on average per year.
EPS 1Y (TTM)43.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%55%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-9.84%
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 small growth in Revenue. The Revenue will grow by 0.16% on average per year.
EPS Next Y62.49%
EPS Next 2Y42.02%
EPS Next 3Y25.28%
EPS Next 5Y23.44%
Revenue Next Year-4.17%
Revenue Next 2Y-1.7%
Revenue Next 3Y-0.57%
Revenue Next 5Y0.16%
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
WBD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 688.19 indicates a quite expensive valuation of WBD.
WBD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.40. WBD is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 688.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WBD is valued cheaply inside the industry as 93.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WBD is valued cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.04 | ||
| EV/EBITDA | 2.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as WBD's earnings are expected to grow with 25.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.02%
EPS Next 3Y25.28%
5. Dividend
5.1 Amount
No dividends for WBD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:WBD (6/12/2025, 11:13:10 AM)
10.5998
+0.09 (+0.85%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners68.22%
Inst Owner Change5.39%
Ins Owners1.05%
Ins Owner Change2.69%
Market Cap26.22B
Analysts72.94
Price Target13.65 (28.78%)
Short Float %4.79%
Short Ratio2.48
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)0
Avg EPS beat(2)-755.54%
Min EPS beat(2)-1474.18%
Max EPS beat(2)-36.9%
EPS beat(4)1
Avg EPS beat(4)-353.02%
Min EPS beat(4)-1474.18%
Max EPS beat(4)157.73%
EPS beat(8)1
Avg EPS beat(8)-500.98%
EPS beat(12)2
Avg EPS beat(12)-662.65%
EPS beat(16)4
Avg EPS beat(16)-404.59%
Revenue beat(2)0
Avg Revenue beat(2)-4.99%
Min Revenue beat(2)-7.39%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-4.31%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)-2.58%
Revenue beat(8)0
Avg Revenue beat(8)-3.15%
Revenue beat(12)0
Avg Revenue beat(12)-4.56%
Revenue beat(16)2
Avg Revenue beat(16)-6.85%
PT rev (1m)3.42%
PT rev (3m)3.4%
EPS NQ rev (1m)-9.23%
EPS NQ rev (3m)-57.48%
EPS NY rev (1m)-51.39%
EPS NY rev (3m)-103.9%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)-2%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 688.19 | ||
| P/S | 0.68 | ||
| P/FCF | 6.04 | ||
| P/OCF | 4.91 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.93 |
EPS(TTM)-0.69
EYN/A
EPS(NY)0.02
Fwd EY0.15%
FCF(TTM)1.75
FCFY16.55%
OCF(TTM)2.16
OCFY20.37%
SpS15.5
BVpS13.68
TBVpS-16.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.62% | ||
| ROE | -31.91% | ||
| ROCE | 0.94% | ||
| ROIC | 0.74% | ||
| ROICexc | 0.78% | ||
| ROICexgc | 9.26% | ||
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 43.73% | ||
| FCFM | 11.32% |
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-Score5
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.63 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 5.15% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 0.43 |
F-Score5
WACC7.22%
ROIC/WACC0.1
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)43.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%55%
EPS Next Y62.49%
EPS Next 2Y42.02%
EPS Next 3Y25.28%
EPS Next 5Y23.44%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-9.84%
Revenue Next Year-4.17%
Revenue Next 2Y-1.7%
Revenue Next 3Y-0.57%
Revenue Next 5Y0.16%
EBIT growth 1Y354.55%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year201.07%
EBIT Next 3Y44.99%
EBIT Next 5Y24.07%
FCF growth 1Y101.91%
FCF growth 3Y22.22%
FCF growth 5Y7.32%
OCF growth 1Y59.49%
OCF growth 3Y24.31%
OCF growth 5Y9.6%