WARNER BROS DISCOVERY INC (WBD) Stock Fundamental Analysis

NASDAQ:WBD • US9344231041

28.75 USD
+0.22 (+0.77%)
At close: Feb 20, 2026
28.7611 USD
+0.01 (+0.04%)
After Hours: 2/20/2026, 8:10:17 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Overall WBD gets a fundamental rating of 3 out of 10. We evaluated WBD against 80 industry peers in the Entertainment industry. While WBD is still in line with the averages on profitability rating, there are concerns on its financial health. WBD is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

4

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.
  • 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.
WBD Yearly Net Income VS EBIT VS OCF VS FCFWBD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B -10B

1.2 Ratios

  • With a decent Return On Assets value of 0.48%, WBD is doing good in the industry, outperforming 63.75% of the companies in the same industry.
  • The Return On Equity of WBD (1.35%) is better than 67.50% of its industry peers.
  • The Return On Invested Capital of WBD (1.56%) is better than 66.25% of its industry peers.
Industry RankSector 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
WBD Yearly ROA, ROE, ROICWBD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30

1.3 Margins

  • Looking at the Profit Margin, with a value of 1.28%, WBD is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
  • WBD has a better Operating Margin (4.61%) than 67.50% of its industry peers.
  • WBD's Operating Margin has declined in the last couple of years.
  • With a Gross Margin value of 44.92%, WBD perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
  • WBD's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
WBD Yearly Profit, Operating, Gross MarginsWBD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WBD is destroying value.
  • WBD has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, WBD has more shares outstanding
  • Compared to 1 year ago, WBD has a worse debt to assets ratio.
WBD Yearly Shares OutstandingWBD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
WBD Yearly Total Debt VS Total AssetsWBD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

  • WBD has an Altman-Z score of 0.95. This is a bad value and indicates that WBD is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.95, WBD is in line with its industry, outperforming 48.75% 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 better Debt to FCF ratio (8.11) than 63.75% of its industry peers.
  • A Debt/Equity ratio of 0.93 indicates that WBD is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.93, WBD is doing worse than 62.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.93
Debt/FCF 8.11
Altman-Z 0.95
ROIC/WACC0.18
WACC8.88%
WBD Yearly LT Debt VS Equity VS FCFWBD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

  • A Current Ratio of 1.07 indicates that WBD should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.07, WBD is in line with its industry, outperforming 47.50% 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.
  • The Quick ratio of WBD (1.07) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.07
Quick Ratio 1.07
WBD Yearly Current Assets VS Current LiabilitesWBD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

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.
  • 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)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

  • Based on estimates for the next years, WBD will show a very strong growth in Earnings Per Share. The EPS will grow by 23.34% on average per year.
  • Based on estimates for the next years, WBD will show a decrease in Revenue. The Revenue will decrease by -0.33% on average per year.
EPS Next Y140.67%
EPS Next 2Y42.18%
EPS Next 3Y18.4%
EPS Next 5Y23.34%
Revenue Next Year-5.67%
Revenue Next 2Y-3.2%
Revenue Next 3Y-1.77%
Revenue Next 5Y-0.33%

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.
WBD Yearly Revenue VS EstimatesWBD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
WBD Yearly EPS VS EstimatesWBD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 -4

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 151.32, the valuation of WBD can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of WBD indicates a somewhat cheap valuation: WBD is cheaper than 61.25% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of WBD to the average of the S&P500 Index (26.99), we can say WBD is valued expensively.
  • With a Price/Forward Earnings ratio of 1466.53, WBD can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WBD is on the same level as its industry peers.
  • WBD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 151.32
Fwd PE 1466.53
WBD Price Earnings VS Forward Price EarningsWBD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 500 1K

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.
  • Based on the Price/Free Cash Flow ratio, WBD is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 17.24
EV/EBITDA 5.08
WBD Per share dataWBD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10

4.3 Compensation for Growth

  • WBD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • WBD's earnings are expected to grow with 18.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y42.18%
EPS Next 3Y18.4%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • WBD does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

WARNER BROS DISCOVERY INC

NASDAQ:WBD (2/20/2026, 8:10:17 PM)

After market: 28.7611 +0.01 (+0.04%)

28.75

+0.22 (+0.77%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners73.62%
Inst Owner Change-0.67%
Ins Owners1.15%
Ins Owner Change0.4%
Market Cap71.25B
Revenue(TTM)37.86B
Net Income(TTM)485.00M
Analysts70.37
Price Target29.23 (1.67%)
Short Float %2.34%
Short Ratio1.32
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)5.23%
PT rev (3m)47.26%
EPS NQ rev (1m)8.52%
EPS NQ rev (3m)15%
EPS NY rev (1m)1.8%
EPS NY rev (3m)14.98%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.36%
Valuation
Industry RankSector Rank
PE 151.32
Fwd PE 1466.53
P/S 1.88
P/FCF 17.24
P/OCF 13.62
P/B 1.98
P/tB N/A
EV/EBITDA 5.08
EPS(TTM)0.19
EY0.66%
EPS(NY)0.02
Fwd EY0.07%
FCF(TTM)1.67
FCFY5.8%
OCF(TTM)2.11
OCFY7.34%
SpS15.28
BVpS14.53
TBVpS-15.25
PEG (NY)1.08
PEG (5Y)N/A
Graham Number7.88
Profitability
Industry RankSector 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 RankSector 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 0.95
F-Score8
WACC8.88%
ROIC/WACC0.18
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 Y140.67%
EPS Next 2Y42.18%
EPS Next 3Y18.4%
EPS Next 5Y23.34%
Revenue 1Y (TTM)-4.33%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%-6.01%
Revenue Next Year-5.67%
Revenue Next 2Y-3.2%
Revenue Next 3Y-1.77%
Revenue Next 5Y-0.33%
EBIT growth 1Y561.91%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year198.82%
EBIT Next 3Y44.11%
EBIT Next 5Y25.08%
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 of WARNER BROS DISCOVERY INC (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 151.32 and the Price/Book (PB) ratio is 1.98.


How financially healthy is WARNER BROS DISCOVERY INC?

The financial health rating of WARNER BROS DISCOVERY INC (WBD) is 3 / 10.