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WEWORK INC-CL A (WE) Stock Fundamental Analysis

NYSE:WE - New York Stock Exchange, Inc. - US96209A4013 - Common Stock - Currency: USD

0.8355  -0.27 (-24.73%)

Premarket: 1.13 +0.29 (+35.25%)

Fundamental Rating

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We assign a fundamental rating of 1 out of 10 to WE. WE was compared to 64 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.


Dividend Valuation Growth Profitability Health

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1. Profitability

1.1 Basic Checks

In the past year WE has reported negative net income.
In the past year WE has reported a negative cash flow from operations.
WE had negative earnings in each of the past 5 years.
In the past 5 years WE always reported negative operating cash flow.
WE Yearly Net Income VS EBIT VS OCF VS FCFWE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 -1B -2B -3B -4B

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 RankSector 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
WE Yearly ROA, ROE, ROICWE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 0 10K 20K 30K 40K

1.3 Margins

WE's Gross Margin of 12.39% is on the low side compared to the rest of the industry. WE is outperformed by 66.15% of its industry peers.
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 RankSector 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
WE Yearly Profit, Operating, Gross MarginsWE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 0 -50 -100 -150

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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.
The number of shares outstanding for WE has been increased compared to 1 year ago.
The debt/assets ratio for WE is higher compared to a year ago.
WE Yearly Shares OutstandingWE Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 200M 400M 600M
WE Yearly Total Debt VS Total AssetsWE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 10B 20B 30B

2.2 Solvency

Based on the Altman-Z score of -1.64, we must say that WE is in the distress zone and has some risk of bankruptcy.
WE's Altman-Z score of -1.64 is on the low side compared to the rest of the industry. WE is outperformed by 83.08% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -1.64
ROIC/WACCN/A
WACC6.45%
WE Yearly LT Debt VS Equity VS FCFWE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 0 2B -2B

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.
The Current ratio of WE (0.34) is worse than 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 RankSector Rank
Current Ratio 0.34
Quick Ratio 0.34
WE Yearly Current Assets VS Current LiabilitesWE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 1B 2B 3B

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3. Growth

3.1 Past

The earnings per share for WE have decreased strongly by -1259.51% in the last year.
The Revenue has grown by 13.49% in the past year. This is quite good.
The Revenue has been decreasing by -2.10% on average over the past years.
EPS 1Y (TTM)-1259.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1005.26%
Revenue 1Y (TTM)13.49%
Revenue growth 3Y-2.1%
Revenue growth 5YN/A
Sales Q2Q%3.56%

3.2 Future

Based on estimates for the next years, WE will show a very strong growth in Earnings Per Share. The EPS will grow by 23.28% on average per year.
WE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.54% yearly.
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

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
WE Yearly Revenue VS EstimatesWE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
WE Yearly EPS VS EstimatesWE Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 -20 -40 -60 -80 -100

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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.
Also next year WE is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
WE Price Earnings VS Forward Price EarningsWE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
WE Per share dataWE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 -50

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

WE does not give a dividend.
Industry RankSector 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)11-08 2023-11-08/bmo
Earnings (Next)02-14 2024-02-14/amc
Inst Owners0%
Inst Owner Change-99.15%
Ins Owners82.55%
Ins Owner Change0%
Market Cap44.50M
Analysts43.64
Price Target7.4 (785.7%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)-30.92%
Min EPS beat(2)-65.32%
Max EPS beat(2)3.48%
EPS beat(4)1
Avg EPS beat(4)-41.2%
Min EPS beat(4)-65.32%
Max EPS beat(4)3.48%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)-2.95%
Revenue beat(4)0
Avg Revenue beat(4)-5.18%
Min Revenue beat(4)-8.29%
Max Revenue beat(4)-2.95%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-27.5%
PT rev (3m)544.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5130.77%
EPS NY rev (1m)-14.94%
EPS NY rev (3m)-5000.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.63%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.17%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.01
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-75.6
EYN/A
EPS(NY)-12.59
Fwd EYN/A
FCF(TTM)-18.91
FCFYN/A
OCF(TTM)-13.67
OCFYN/A
SpS63.05
BVpS-69.81
TBVpS-83.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -10.85%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 12.39%
FCFM 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
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y20.38%
GM growth 5YN/A
F-Score4
Asset Turnover0.22
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 45.29%
Cap/Sales 8.31%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.34
Quick Ratio 0.34
Altman-Z -1.64
F-Score4
WACC6.45%
ROIC/WACCN/A
Cap/Depr(3y)96.01%
Cap/Depr(5y)308.91%
Cap/Sales(3y)22.13%
Cap/Sales(5y)56.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1259.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1005.26%
EPS Next Y49.12%
EPS Next 2Y33.08%
EPS Next 3Y23.28%
EPS Next 5YN/A
Revenue 1Y (TTM)13.49%
Revenue growth 3Y-2.1%
Revenue growth 5YN/A
Sales Q2Q%3.56%
Revenue Next Year2.69%
Revenue Next 2Y4.1%
Revenue Next 3Y5.54%
Revenue Next 5YN/A
EBIT growth 1Y51.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year91.41%
EBIT Next 3Y34.36%
EBIT Next 5YN/A
FCF growth 1Y59.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y60.59%
OCF growth 3YN/A
OCF growth 5YN/A