23.17 USD
+0.29 (+1.27%)
23.17 USD
0 (0%)
Overall WBD gets a fundamental rating of 3 out of 10. We evaluated WBD 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
WBD had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 0.48%, WBD is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Return On Equity of WBD (1.35%) is better than 63.75% 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 has a Profit Margin of 1.28%. This is in the better half of the industry: WBD outperforms 63.75% of its industry peers.
With a decent Operating Margin value of 4.61%, WBD is doing good in the industry, outperforming 65.00% of the companies in the same industry.
In the last couple of years the Operating Margin of WBD has declined.
WBD's Gross Margin of 44.92% is in line compared to the rest of the industry. WBD outperforms 53.75% 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.
The number of shares outstanding for WBD has been increased compared to 1 year ago.
Compared to 5 years ago, WBD has more shares outstanding
WBD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, 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 0.82, WBD is in line with its industry, outperforming 47.50% 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.
WBD has a Debt to FCF ratio of 8.11. This is in the better half of the industry: WBD outperforms 61.25% 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: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 8.11 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.21
WACC7.42%
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.
Looking at the Current ratio, with a value of 1.07, WBD is in line with its industry, outperforming 48.75% of the companies in the same 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.
WBD has a Quick ratio (1.07) which is comparable to the rest of the industry.
| 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
WBD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.44% yearly.
Based on estimates for the next years, WBD will show a decrease in Revenue. The Revenue will decrease by -0.14% on average per year.
EPS Next Y135.38%
EPS Next 2Y35.88%
EPS Next 3Y25.77%
EPS Next 5Y23.44%
Revenue Next Year-5.33%
Revenue Next 2Y-2.48%
Revenue Next 3Y-1.29%
Revenue Next 5Y-0.14%
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
The Price/Earnings ratio is 121.95, which means the current valuation is very expensive for WBD.
Compared to the rest of the industry, the Price/Earnings ratio of WBD is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.47, WBD is valued quite expensively.
WBD is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 121.95 | ||
| 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 86.25% of the companies listed in the same industry.
WBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WBD is cheaper than 86.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.88 | ||
| EV/EBITDA | 4.4 |
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.
WBD's earnings are expected to grow with 25.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y35.88%
EPS Next 3Y25.77%
5. Dividend
5.1 Amount
WBD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.17
+0.29 (+1.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners73.13%
Inst Owner Change-0.43%
Ins Owners1.17%
Ins Owner Change-0.06%
Market Cap57.36B
Revenue(TTM)37.86B
Net Income(TTM)485.00M
Analysts76.13
Price Target23.02 (-0.65%)
Short Float %3.2%
Short Ratio1.44
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)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)53.43%
PT rev (3m)57.25%
EPS NQ rev (1m)81.2%
EPS NQ rev (3m)-183.56%
EPS NY rev (1m)4.13%
EPS NY rev (3m)-5.51%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 121.95 | ||
| Fwd PE | N/A | ||
| P/S | 1.52 | ||
| P/FCF | 13.88 | ||
| P/OCF | 10.97 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.4 |
EPS(TTM)0.19
EY0.82%
EPS(NY)-0.14
Fwd EYN/A
FCF(TTM)1.67
FCFY7.21%
OCF(TTM)2.11
OCFY9.12%
SpS15.29
BVpS14.55
TBVpS-15.27
PEG (NY)0.9
PEG (5Y)N/A
Graham Number7.89
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 | 0.82 |
F-Score8
WACC7.42%
ROIC/WACC0.21
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 Y135.38%
EPS Next 2Y35.88%
EPS Next 3Y25.77%
EPS Next 5Y23.44%
Revenue 1Y (TTM)-4.33%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-6.01%
Revenue Next Year-5.33%
Revenue Next 2Y-2.48%
Revenue Next 3Y-1.29%
Revenue Next 5Y-0.14%
EBIT growth 1Y561.91%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year197.32%
EBIT Next 3Y44.1%
EBIT Next 5Y25.06%
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 for 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 121.95 and the Price/Book (PB) ratio is 1.59.