WARNER BROS DISCOVERY INC (WBD) Stock Fundamental Analysis
NASDAQ:WBD - Nasdaq - US9344231041 - Common Stock - Currency: USD
Taking everything into account, WBD scores 2 out of 10 in our fundamental rating. WBD was compared to 71 industry peers in the Entertainment industry. WBD has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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
WBD has a worse Return On Assets (-10.62%) than 61.97% of its industry peers.
WBD has a Return On Equity of -31.91%. This is comparable to the rest of the industry: WBD outperforms 43.66% of its industry peers.
WBD has a Return On Invested Capital of 0.74%. This is in the better half of the industry: WBD outperforms 61.97% of its industry peers.
| 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
The Operating Margin of WBD (2.12%) is better than 61.97% of its industry peers.
In the last couple of years the Operating Margin of WBD has declined.
WBD has a Gross Margin (43.73%) which is comparable to the rest of the industry.
WBD's Gross Margin has declined in the last couple of years.
| 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.
WBD has more shares outstanding than it did 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 0.40, we must say that WBD is in the distress zone and has some risk of bankruptcy.
WBD's Altman-Z score of 0.40 is in line compared to the rest of the industry. WBD outperforms 40.85% of its industry peers.
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's Debt to FCF ratio of 8.63 is in line compared to the rest of the industry. WBD outperforms 57.75% of its industry peers.
A Debt/Equity ratio of 1.02 is on the high side and indicates that WBD has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.02, WBD is doing worse than 60.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | 0.4 |
ROIC/WACC0.1
WACC7.34%
2.3 Liquidity
WBD has a Current 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.
With a Current ratio value of 0.84, WBD perfoms like the industry average, outperforming 47.89% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that WBD may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, WBD perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
WBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.44%, which is quite impressive.
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
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 small growth in Revenue. The Revenue will grow by 0.69% on average per year.
EPS Next Y62.49%
EPS Next 2Y42.02%
EPS Next 3Y25.28%
EPS Next 5Y23.44%
Revenue Next Year-3.2%
Revenue Next 2Y-1.17%
Revenue Next 3Y-0.33%
Revenue Next 5Y0.69%
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
The Price/Earnings Ratio is negative for WBD. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 599.25, which means the current valuation is very expensive for WBD.
WBD's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, WBD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 599.25 |
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 92.96% 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 95.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.26 | ||
| EV/EBITDA | 2.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
WBD's earnings are expected to grow with 25.28% in the coming years. This may justify a more expensive valuation.
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 |
9.23
+0.18 (+1.99%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners68.22%
Inst Owner Change5.23%
Ins Owners1.05%
Ins Owner Change2.56%
Market Cap22.83B
Analysts72.73
Price Target13.11 (42.04%)
Short Float %4.08%
Short Ratio2.09
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)-2.83%
PT rev (3m)4.56%
EPS NQ rev (1m)-11.6%
EPS NQ rev (3m)-60.91%
EPS NY rev (1m)-51.39%
EPS NY rev (3m)-103.9%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 599.25 | ||
| P/S | 0.6 | ||
| P/FCF | 5.26 | ||
| P/OCF | 4.27 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.76 |
EPS(TTM)-0.69
EYN/A
EPS(NY)0.02
Fwd EY0.17%
FCF(TTM)1.75
FCFY19%
OCF(TTM)2.16
OCFY23.4%
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 | 0.4 |
F-Score5
WACC7.34%
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-3.2%
Revenue Next 2Y-1.17%
Revenue Next 3Y-0.33%
Revenue Next 5Y0.69%
EBIT growth 1Y354.55%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year204.29%
EBIT Next 3Y45.48%
EBIT Next 5Y26.07%
FCF growth 1Y101.91%
FCF growth 3Y22.22%
FCF growth 5Y7.32%
OCF growth 1Y59.49%
OCF growth 3Y24.31%
OCF growth 5Y9.6%