WARNER BROS DISCOVERY INC (WBD) Stock Fundamental Analysis
USA - NASDAQ:WBD - US9344231041 - Common Stock
21.15 USD
-0.1 (-0.47%)
21.1499 USD
0 (0%)
Taking everything into account, WBD scores 3 out of 10 in our fundamental rating. WBD was compared to 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
In the past year WBD was profitable.
WBD had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WBD reported negative net income in multiple years.
In the past 5 years WBD always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.75%, WBD is in line with its industry, outperforming 58.75% of the companies in the same industry.
The Return On Equity of WBD (2.13%) is better than 65.00% of its industry peers.
WBD has a Return On Invested Capital (1.25%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.13% | ||
| ROIC | 1.25% |
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
With a decent Profit Margin value of 2.00%, WBD is doing good in the industry, outperforming 62.50% of the companies in the same industry.
WBD's Operating Margin of 3.65% is fine compared to the rest of the industry. WBD outperforms 63.75% of its industry peers.
In the last couple of years the Operating Margin of WBD has declined.
WBD has a Gross Margin of 44.43%. This is comparable to the rest of the industry: WBD outperforms 53.75% of its industry peers.
In the last couple of years the Gross Margin of WBD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.65% | ||
| PM (TTM) | 2% | ||
| GM | 44.43% |
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.
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
WBD has an Altman-Z score of 0.76. This is a bad value and indicates that WBD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.76, WBD perfoms like the industry average, outperforming 41.25% of the companies in the same industry.
The Debt to FCF ratio of WBD is 8.52, which is on the high side as it means it would take WBD, 8.52 years of fcf income to pay off all of its debts.
WBD's Debt to FCF ratio of 8.52 is in line compared to the rest of the industry. WBD outperforms 56.25% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that WBD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, WBD is not doing good in the industry: 66.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 8.52 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.19
WACC6.48%
2.3 Liquidity
WBD has a Current Ratio of 1.04. 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 1.04, WBD is in line with its industry, outperforming 47.50% of the companies in the same industry.
WBD has a Quick Ratio of 1.04. This is a normal value and indicates that WBD is financially healthy and should not expect problems in meeting its short term obligations.
WBD's Quick ratio of 1.04 is in line compared to the rest of the industry. WBD outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
WBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.52%, which is quite impressive.
Looking at the last year, WBD shows a decrease in Revenue. The Revenue has decreased by -3.74% in the last year.
The Revenue has been growing by 28.68% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)127.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%275%
Revenue 1Y (TTM)-3.74%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%1.02%
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 -0.12% on average per year.
EPS Next Y133.97%
EPS Next 2Y35.73%
EPS Next 3Y25.8%
EPS Next 5Y23.44%
Revenue Next Year-5%
Revenue Next 2Y-2.29%
Revenue Next 3Y-1.29%
Revenue Next 5Y-0.12%
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
With a Price/Earnings ratio of 70.50, WBD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, WBD is valued a bit cheaper than the industry average as 66.25% of the companies are valued more expensively.
WBD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.89.
The Forward Price/Earnings Ratio is negative for WBD. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.5 | ||
| Fwd PE | N/A |
4.2 Price Multiples
91.25% of the companies in the same industry are more expensive than WBD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WBD indicates a rather cheap valuation: WBD is cheaper than 91.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.88 | ||
| EV/EBITDA | 4.02 |
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 25.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y35.73%
EPS Next 3Y25.8%
5. Dividend
5.1 Amount
No dividends for WBD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.15
-0.1 (-0.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners73.13%
Inst Owner Change1.04%
Ins Owners1.17%
Ins Owner Change0.04%
Market Cap52.36B
Revenue(TTM)38.44B
Net Income(TTM)768.00M
Analysts73.55
Price Target15 (-29.08%)
Short Float %4.32%
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)1
Avg EPS beat(2)180.82%
Min EPS beat(2)-36.9%
Max EPS beat(2)398.54%
EPS beat(4)2
Avg EPS beat(4)-238.7%
Min EPS beat(4)-1474.18%
Max EPS beat(4)398.54%
EPS beat(8)2
Avg EPS beat(8)-447.78%
EPS beat(12)2
Avg EPS beat(12)-941.6%
EPS beat(16)4
Avg EPS beat(16)-379.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.93%
Min Revenue beat(2)-7.39%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-3.3%
Min Revenue beat(4)-7.39%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-2.99%
Revenue beat(12)0
Avg Revenue beat(12)-3.13%
Revenue beat(16)1
Avg Revenue beat(16)-6.98%
PT rev (1m)2.18%
PT rev (3m)5.87%
EPS NQ rev (1m)29.55%
EPS NQ rev (3m)-190.02%
EPS NY rev (1m)2%
EPS NY rev (3m)217.26%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.5 | ||
| Fwd PE | N/A | ||
| P/S | 1.36 | ||
| P/FCF | 12.88 | ||
| P/OCF | 10.27 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.02 |
EPS(TTM)0.3
EY1.42%
EPS(NY)-0.14
Fwd EYN/A
FCF(TTM)1.64
FCFY7.76%
OCF(TTM)2.06
OCFY9.74%
SpS15.53
BVpS14.56
TBVpS-15.6
PEG (NY)0.53
PEG (5Y)N/A
Graham Number9.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 2.13% | ||
| ROCE | 1.58% | ||
| ROIC | 1.25% | ||
| ROICexc | 1.32% | ||
| ROICexgc | 12.15% | ||
| OM | 3.65% | ||
| PM (TTM) | 2% | ||
| GM | 44.43% | ||
| FCFM | 10.57% |
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 | 0.95 | ||
| Debt/FCF | 8.52 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 5.44% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 24.98% | ||
| Profit Quality | 529.3% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 0.76 |
F-Score8
WACC6.48%
ROIC/WACC0.19
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)127.52%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%275%
EPS Next Y133.97%
EPS Next 2Y35.73%
EPS Next 3Y25.8%
EPS Next 5Y23.44%
Revenue 1Y (TTM)-3.74%
Revenue growth 3Y47.75%
Revenue growth 5Y28.68%
Sales Q2Q%1.02%
Revenue Next Year-5%
Revenue Next 2Y-2.29%
Revenue Next 3Y-1.29%
Revenue Next 5Y-0.12%
EBIT growth 1Y692.83%
EBIT growth 3Y-33.72%
EBIT growth 5Y-29.28%
EBIT Next Year197.32%
EBIT Next 3Y44.1%
EBIT Next 5Y24.93%
FCF growth 1Y31.89%
FCF growth 3Y22.22%
FCF growth 5Y7.32%
OCF growth 1Y17.11%
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 5 / 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 70.5 and the Price/Book (PB) ratio is 1.45.