World Wrestling Entertainment (WWE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WWE - US98156Q1085 - Common Stock
100.65 USD
+2.6 (+2.65%)
100.65 USD
0 (0%)
Taking everything into account, WWE scores 6 out of 10 in our fundamental rating. WWE was compared to 80 industry peers in the Entertainment industry. WWE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WWE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- WWE had positive earnings in the past year.
- WWE had a positive operating cash flow in the past year.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.22%, WWE belongs to the top of the industry, outperforming 96.05% of the companies in the same industry.
- The Return On Equity of WWE (18.60%) is better than 94.74% of its industry peers.
- WWE's Return On Invested Capital of 15.06% is amongst the best of the industry. WWE outperforms 94.74% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WWE is significantly above the industry average of 8.74%.
| 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 has a Profit Margin of 12.64%. This is amongst the best in the industry. WWE outperforms 90.79% of its industry peers.
- In the last couple of years the Profit Margin of WWE has grown nicely.
- Looking at the Operating Margin, with a value of 19.58%, WWE belongs to the top of the industry, outperforming 90.79% of the companies in the same industry.
- In the last couple of years the Operating Margin of WWE has grown nicely.
| 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.
- WWE has less shares outstanding than it did 1 year ago.
- WWE has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 10.45 indicates that WWE is not in any danger for bankruptcy at the moment.
- The Altman-Z score of WWE (10.45) is better than 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.
- Looking at the Debt to FCF ratio, with a value of 7.58, WWE is in the better half of the industry, outperforming 77.63% of the companies in the same industry.
- 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.
- WWE has a better Current ratio (3.78) 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.
- WWE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.48% yearly.
- The Revenue has grown by 8.97% in the past year. This is quite good.
- WWE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.03% yearly.
EPS 1Y (TTM)0%
EPS 3Y44.42%
EPS 5Y32.48%
EPS Q2Q%54.24%
Revenue 1Y (TTM)8.97%
Revenue growth 3Y10.38%
Revenue growth 5Y10.03%
Sales Q2Q%25.06%
3.2 Future
- The Earnings Per Share is expected to grow by 25.93% on average over the next years. This is a very strong growth
- Based on estimates for the next years, WWE will show a small growth in Revenue. The Revenue will grow by 7.73% on average per year.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 39.01, which means the current valuation is very expensive for WWE.
- Based on the Price/Earnings ratio, WWE is valued a bit cheaper than the industry average as 76.32% of the companies are valued more expensively.
- WWE is valuated rather expensively when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 31.63, which means the current valuation is very expensive for WWE.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WWE indicates a somewhat cheap valuation: WWE is cheaper than 67.11% of the companies listed in the same industry.
- WWE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 31.63 |
4.2 Price Multiples
- WWE's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, WWE is valued a bit cheaper than 71.05% of the companies in the same industry.
| 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.
- WWE has a very decent profitability rating, which 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 7.58. WWE pays more dividend than 86.84% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, WWE's dividend is way lower than the S&P500 average.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 / WWE FAQ
What is the fundamental rating for WWE stock?
ChartMill assigns a fundamental rating of 7 / 10 to WWE.
Can you provide the valuation status for World Wrestling Entertainment?
ChartMill assigns a valuation rating of 4 / 10 to World Wrestling Entertainment (WWE). This can be considered as Fairly Valued.
How profitable is World Wrestling Entertainment (WWE) stock?
World Wrestling Entertainment (WWE) has a profitability rating of 8 / 10.
What is the valuation of World Wrestling Entertainment based on its PE and PB ratios?
The Price/Earnings (PE) ratio for World Wrestling Entertainment (WWE) is 39.01 and the Price/Book (PB) ratio is 9.21.
Can you provide the dividend sustainability for WWE stock?
The dividend rating of World Wrestling Entertainment (WWE) is 5 / 10 and the dividend payout ratio is 21.61%.