WARNER BROS DISCOVERY INC (WBD) Stock Fundamental Analysis
NASDAQ:WBD - Nasdaq - US9344231041 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to WBD. WBD was compared to 73 industry peers in the Entertainment industry. WBD has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, WBD is valued expensive at the moment.
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.
Each year in the past 5 years WBD had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -10.62%, WBD is not doing good in the industry: 67.12% of the companies in the same industry are doing better.
With a Return On Equity value of -31.91%, WBD is not doing good in the industry: 60.27% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 0.74%, WBD is in the better half of the industry, outperforming 61.64% 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
Looking at the Operating Margin, with a value of 2.12%, WBD is in the better half of the industry, outperforming 61.64% of the companies in the same industry.
WBD's Operating Margin has declined in the last couple of years.
WBD's Gross Margin of 43.73% is in line compared to the rest of the industry. WBD outperforms 50.68% of its industry peers.
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.
The number of shares outstanding for WBD has been increased compared to 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 0.48, we must say that WBD is in the distress zone and has some risk of bankruptcy.
WBD's Altman-Z score of 0.48 is in line compared to the rest of the industry. WBD outperforms 41.10% of its industry peers.
The Debt to FCF ratio of WBD is 8.63, which is on the high side as it means it would take WBD, 8.63 years of fcf income to pay off all of its debts.
WBD has a Debt to FCF ratio of 8.63. This is in the better half of the industry: WBD outperforms 63.01% 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 63.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.12
WACC6.39%
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 46.58% 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 49.32% 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.
WBD shows a decrease in Revenue. In the last year, the revenue decreased by -5.51%.
The Revenue has been growing by 28.68% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 23.44% on average over the next years. This is a very strong growth
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 Y71.03%
EPS Next 2Y41.49%
EPS Next 3Y26.93%
EPS Next 5Y23.44%
Revenue Next Year-3.96%
Revenue Next 2Y-1.62%
Revenue Next 3Y-0.51%
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
The Price/Earnings Ratio is negative for WBD. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 7198.13, WBD can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as WBD.
When comparing the Price/Forward Earnings ratio of WBD to the average of the S&P500 Index (36.21), we can say WBD is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7198.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WBD is valued cheaply inside the industry as 93.15% of the companies are valued more expensively.
WBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WBD is cheaper than 93.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 3.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WBD does not grow enough to justify the current Price/Earnings ratio.
WBD's earnings are expected to grow with 26.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.49%
EPS Next 3Y26.93%
5. Dividend
5.1 Amount
No dividends for WBD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:WBD (8/4/2025, 11:32:08 AM)
12.65
-0.22 (-1.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners71%
Inst Owner Change-0.15%
Ins Owners1.21%
Ins Owner Change2.65%
Market Cap31.30B
Analysts74.84
Price Target14.17 (12.02%)
Short Float %4.81%
Short Ratio1.82
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)7.34%
EPS NQ rev (1m)4.45%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)23.6%
EPS NY rev (3m)-16.93%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 7198.13 | ||
| P/S | 0.82 | ||
| P/FCF | 7.21 | ||
| P/OCF | 5.86 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.22 |
EPS(TTM)-0.69
EYN/A
EPS(NY)0
Fwd EY0.01%
FCF(TTM)1.75
FCFY13.86%
OCF(TTM)2.16
OCFY17.07%
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 | 0.48 |
F-Score5
WACC6.39%
ROIC/WACC0.12
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 Y71.03%
EPS Next 2Y41.49%
EPS Next 3Y26.93%
EPS Next 5Y23.44%
Revenue 1Y (TTM)-5.51%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-9.84%
Revenue Next Year-3.96%
Revenue Next 2Y-1.62%
Revenue Next 3Y-0.51%
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%