Fundamental Analysis of WEWORK INC-CL A(NYSE:WE) stock

Fundamental Rating

Overall WE gets a fundamental rating of 1 out of 10. We evaluated WE against 65 industry peers in the Real Estate Management & Development industry. Both the profitability and financial health of WE have multiple concerns. WE has a expensive valuation and it also scores bad on growth.

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1. Profitability

1.1 Basic Checks

WE had negative earnings in the past year.

In the past year WE has reported a negative cash flow from operations.

In the past 5 years WE always reported negative net income.

In the past 5 years WE always reported negative operating cash flow.

1.2 Ratios

With a Return On Assets value of -10.85%, WE is not doing good in the industry: 64.62% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
ROA	-10.85%
ROE	N/A
ROIC	N/A

ROA(3y)-14.71%

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With a Gross Margin value of 12.39%, WE is not doing good in the industry: 66.15% of the companies in the same industry are doing better.

In the last couple of years the Gross Margin of WE has grown nicely.

WE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	12.39%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y20.38%

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

WE does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, WE has more shares outstanding

The debt/assets ratio for WE is higher compared to a year ago.

2.2 Solvency

WE has an Altman-Z score of -1.64. This is a bad value and indicates that WE is not financially healthy and even has some risk of bankruptcy.

WE has a Altman-Z score of -1.64. This is amonst the worse of the industry: WE underperforms 83.08% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	N/A
Altman-Z	-1.64

ROIC/WACCN/A

WACC6.45%

2.3 Liquidity

WE has a Current Ratio of 0.34. This is a bad value and indicates that WE is not financially healthy enough and could expect problems in meeting its short term obligations.

WE's Current ratio of 0.34 is on the low side compared to the rest of the industry. WE is outperformed by 87.69% of its industry peers.

A Quick Ratio of 0.34 indicates that WE may have some problems paying its short term obligations.

The Quick ratio of WE (0.34) is worse than 87.69% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.34
Quick Ratio	0.34

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

WE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1259.51%.

Looking at the last year, WE shows a quite strong growth in Revenue. The Revenue has grown by 13.49% in the last year.

WE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.10% yearly.

EPS 1Y (TTM)-1259.51%

EPS 3YN/A

EPS 5YN/A

EPS growth Q2Q-1005.26%

Revenue 1Y (TTM)13.49%

Revenue growth 3Y-2.1%

Revenue growth 5YN/A

Revenue growth Q2Q3.56%

3.2 Future

WE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.28% yearly.

Based on estimates for the next years, WE will show a small growth in Revenue. The Revenue will grow by 5.54% on average per year.

EPS Next Y49.12%

EPS Next 2Y33.08%

EPS Next 3Y23.28%

EPS Next 5YN/A

Revenue Next Year2.69%

Revenue Next 2Y4.1%

Revenue Next 3Y5.54%

Revenue Next 5YN/A

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 accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for WE. In the last year negative earnings were reported.

Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for WE. No positive earnings are expected for the next year.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

WE's earnings are expected to grow with 23.28% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y33.08%

EPS Next 3Y23.28%

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5. Dividend

5.1 Amount

No dividends for WE!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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WEWORK INC-CL A

NYSE:WE (11/3/2023, 8:04:00 PM)

Premarket: 1.13 +0.29 (+35.25%)

0.8355

-0.27 (-24.73%)

Chartmill FA Rating

GICS SectorReal Estate

GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)

GICS IndustryReal Estate Management & Development

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

Ins Owner Change

Market Cap44.50M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-10.85%
ROE	N/A
ROCE
ROIC
ROICexc
ROICexgc
OM	N/A
PM (TTM)	N/A
GM	12.39%
FCFM

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

ROIC(5y)

ROICexc(3y)

ROICexc(5y)

ROICexgc(3y)

ROICexgc(5y)

ROCE(3y)

ROCE(5y)

ROICexcg growth 3Y

ROICexcg growth 5Y

ROICexc growth 3Y

ROICexc growth 5Y

OM growth 3Y

OM growth 5Y

PM growth 3Y

PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.22

Health

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	0.34
Quick Ratio	0.34
Altman-Z

F-Score

WACC

ROIC/WACC

Cap/Depr(3y)

Cap/Depr(5y)

Cap/Sales(3y)

Cap/Sales(5y)

Profit Quality(3y)

Profit Quality(5y)

Growth

EPS 1Y (TTM)-1259.51%

EPS 3YN/A

EPS 5Y

EPS growth Q2Q

EPS Next Y49.12%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)13.49%

Revenue growth 3Y-2.1%

Revenue growth 5Y

Revenue growth Q2Q

Revenue Next Year

Revenue Next 2Y

Revenue Next 3Y

Revenue Next 5Y

EBIT growth 1Y

EBIT growth 3Y

EBIT growth 5Y

EBIT Next Year

EBIT Next 3Y

EBIT Next 5Y

FCF growth 1Y

FCF growth 3Y

FCF growth 5Y

OCF growth 1Y

OCF growth 3Y

OCF growth 5Y

WEWORK INC-CL A (WE)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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