World Wrestling Entertainment (WWE)
US98156Q1085 - Common Stock
Overall WWE gets a fundamental rating of 7 out of 10. We evaluated WWE against 77 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making WWE a very profitable company, without any liquidiy or solvency issues. WWE has a correct valuation and a medium growth rate. These ratings would make WWE suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WWE was profitable.
In the past year WWE had a positive cash flow from operations.
Each year in the past 5 years WWE has been profitable.
In the past 5 years WWE always reported a positive cash flow from operatings.
1.2 Ratios
WWE's Return On Assets of 11.22% is amongst the best of the industry. WWE outperforms 96.05% of its industry peers.
WWE has a Return On Equity of 18.60%. This is amongst the best in the industry. WWE outperforms 94.74% of its industry peers.
The Return On Invested Capital of WWE (15.06%) is better than 94.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WWE is significantly below the industry average of 37.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 18.6% | ||
| ROIC | 15.06% |
ROA(3y)13.11%
ROA(5y)12.26%
ROE(3y)39.69%
ROE(5y)35.71%
ROIC(3y)18.26%
ROIC(5y)16.38%
1.3 Margins
WWE's Profit Margin of 12.64% is amongst the best of the industry. WWE outperforms 90.79% of its industry peers.
WWE's Profit Margin has improved in the last couple of years.
WWE has a better Operating Margin (19.58%) than 90.79% of its industry peers.
WWE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.58% | ||
| PM (TTM) | 12.64% | ||
| GM | N/A |
OM growth 3Y21.29%
OM growth 5Y18.38%
PM growth 3Y23.56%
PM growth 5Y30.06%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
WWE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for WWE has been reduced compared to 1 year ago.
The number of shares outstanding for WWE has been reduced compared to 5 years ago.
Compared to 1 year ago, WWE has an improved debt to assets ratio.
2.2 Solvency
WWE has an Altman-Z score of 10.45. This indicates that WWE is financially healthy and has little risk of bankruptcy at the moment.
WWE has a Altman-Z score of 10.45. This is amongst the best in the industry. WWE outperforms 98.68% of its industry peers.
The Debt to FCF ratio of WWE is 7.58, which is on the high side as it means it would take WWE, 7.58 years of fcf income to pay off all of its debts.
WWE has a Debt to FCF ratio of 7.58. This is in the better half of the industry: WWE outperforms 77.63% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that WWE is not too dependend on debt financing.
The Debt to Equity ratio of WWE (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 7.58 | ||
| Altman-Z | 10.45 |
ROIC/WACC1.69
WACC8.9%
2.3 Liquidity
A Current Ratio of 3.78 indicates that WWE has no problem at all paying its short term obligations.
The Current ratio of WWE (3.78) is better than 81.58% of its industry peers.
WWE has a Quick Ratio of 3.76. This indicates that WWE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.76, WWE belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.78 | ||
| Quick Ratio | 3.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% over the past year.
Measured over the past years, WWE shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.48% on average per year.
The Revenue has grown by 8.97% in the past year. This is quite good.
The Revenue has been growing by 10.03% on average over the past years. This is quite good.
EPS 1Y (TTM)0%
EPS 3Y44.42%
EPS 5Y32.48%
EPS growth Q2Q54.24%
Revenue 1Y (TTM)8.97%
Revenue growth 3Y10.38%
Revenue growth 5Y10.03%
Revenue growth Q2Q25.06%
3.2 Future
WWE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.93% yearly.
WWE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.73% yearly.
EPS Next Y1.85%
EPS Next 2Y12.15%
EPS Next 3Y20.76%
EPS Next 5Y25.93%
Revenue Next Year4.64%
Revenue Next 2Y6.34%
Revenue Next 3Y9.6%
Revenue Next 5Y7.73%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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 39.01, which means the current valuation is very expensive for WWE.
WWE's Price/Earnings ratio is a bit cheaper when compared to the industry. WWE is cheaper than 76.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.80, WWE is valued quite expensively.
WWE is valuated quite expensively with a Price/Forward Earnings ratio of 31.63.
Based on the Price/Forward Earnings ratio, WWE is valued a bit cheaper than 67.11% of the companies in the same industry.
WWE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 31.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WWE is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, WWE is valued a bit cheaper than the industry average as 71.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 158.69 | ||
| EV/EBITDA | 23.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WWE may justify a higher PE ratio.
WWE's earnings are expected to grow with 20.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)21.04
PEG (5Y)1.2
EPS Next 2Y12.15%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
WWE has a yearly dividend return of 0.48%, which is pretty low.
WWE's Dividend Yield is rather good when compared to the industry average which is at 27.67. WWE pays more dividend than 86.84% of the companies in the same industry.
With a Dividend Yield of 0.48, WWE pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of WWE decreases each year by -0.11%.
WWE has been paying a dividend for at least 10 years, so it has a reliable track record.
WWE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.11%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
21.61% of the earnings are spent on dividend by WWE. This is a low number and sustainable payout ratio.
DP21.61%
EPS Next 2Y12.15%
EPS Next 3Y20.76%
World Wrestling Entertainment
NYSE:WWE (9/11/2023, 7:04:00 PM)
After market: 100.65 0 (0%)100.65
+2.6 (+2.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
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Market Cap8.37B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 31.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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SpS
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PEG (NY)21.04
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 18.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.58% | ||
| PM (TTM) | 12.64% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
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ROICexc(3y)
ROICexc(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
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OM growth 5Y
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GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.78 | ||
| Quick Ratio | 3.76 | ||
| Altman-Z |
F-Score
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Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
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Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0%
EPS 3Y44.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.97%
Revenue growth 3Y10.38%
Revenue growth 5Y
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