World Wrestling Entertainment (WWE) Stock Fundamental Analysis
NYSE:WWE - New York Stock Exchange, Inc. - US98156Q1085 - Common Stock - Currency: USD
WWE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. WWE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WWE has a decent growth rate and is not valued too expensively. These ratings would make WWE suitable for quality investing!
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.
In the past 5 years WWE has always been profitable.
Each year in the past 5 years WWE had a positive operating cash flow.
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.
WWE has a better Return On Invested Capital (15.06%) than 94.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WWE is below the industry average of 22.90%.
| 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
Looking at the Profit Margin, with a value of 12.64%, WWE belongs to the top of the industry, outperforming 90.79% of the companies in the same industry.
WWE's Profit Margin has improved in the last couple of years.
WWE has a Operating Margin of 19.58%. This is amongst the best in the industry. WWE outperforms 90.79% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WWE is creating value.
The number of shares outstanding for WWE has been reduced compared to 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.
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.
WWE has a debt to FCF ratio of 7.58. This is a slightly negative value and a sign of low solvency as WWE would need 7.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.58, WWE is doing good in 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.
Looking at the Debt to Equity ratio, with a value of 0.43, WWE is in line with its industry, outperforming 56.58% of the companies in the same 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
WWE has a Current Ratio of 3.78. This indicates that WWE is financially healthy and has no problem in meeting its short term obligations.
WWE has a better Current ratio (3.78) than 81.58% of its industry peers.
A Quick Ratio of 3.76 indicates that WWE has no problem at all paying its short term obligations.
WWE's Quick ratio of 3.76 is amongst the best of the industry. WWE outperforms 81.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.78 | ||
| Quick Ratio | 3.76 |
3. Growth
3.1 Past
WWE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
The Earnings Per Share has been growing by 32.48% on average over the past years. This is a very strong growth
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 Q2Q%54.24%
Revenue 1Y (TTM)8.97%
Revenue growth 3Y10.38%
Revenue growth 5Y10.03%
Sales Q2Q%25.06%
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
A Price/Earnings ratio of 39.01 indicates a quite expensive valuation of WWE.
76.32% of the companies in the same industry are more expensive than WWE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WWE to the average of the S&P500 Index (26.31), we can say WWE is valued slightly more expensively.
With a Price/Forward Earnings ratio of 31.63, WWE can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WWE is valued a bit cheaper than the industry average as 67.11% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.13. WWE is valued slightly more expensive when compared to this.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WWE indicates a somewhat cheap valuation: WWE is cheaper than 71.05% of the companies listed 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.
Compared to an average industry Dividend Yield of 6.08, WWE pays a better dividend. On top of this WWE pays more dividend than 86.84% of the companies listed in the same industry.
With a Dividend Yield of 0.48, WWE pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of WWE decreases each year by -0.11%.
WWE has paid a dividend for at least 10 years, which is 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
WWE pays out 21.61% of its income as dividend. This is a sustainable payout ratio.
DP21.61%
EPS Next 2Y12.15%
EPS Next 3Y20.76%
100.65
+2.6 (+2.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners0.73%
Ins Owner Change0%
Market Cap8.37B
Analysts78.57
Price Target115.83 (15.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.48
Dividend Growth(5Y)-0.11%
DP21.61%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.71%
Min EPS beat(2)-1.42%
Max EPS beat(2)16.85%
EPS beat(4)2
Avg EPS beat(4)7.99%
Min EPS beat(4)-11.69%
Max EPS beat(4)28.23%
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)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)1.08%
Max Revenue beat(2)1.86%
Revenue beat(4)3
Avg Revenue beat(4)1.54%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)7.01%
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)-0.2%
PT rev (3m)0.99%
EPS NQ rev (1m)2.96%
EPS NQ rev (3m)-6.65%
EPS NY rev (1m)0.53%
EPS NY rev (3m)-6.76%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 31.63 | ||
| P/S | 6.26 | ||
| P/FCF | 158.69 | ||
| P/OCF | 31.84 | ||
| P/B | 9.21 | ||
| P/tB | 9.32 | ||
| EV/EBITDA | 23.18 |
EPS(TTM)2.58
EY2.56%
EPS(NY)3.18
Fwd EY3.16%
FCF(TTM)0.63
FCFY0.63%
OCF(TTM)3.16
OCFY3.14%
SpS16.09
BVpS10.93
TBVpS10.8
PEG (NY)21.04
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 18.6% | ||
| ROCE | 20% | ||
| ROIC | 15.06% | ||
| ROICexc | 25.04% | ||
| ROICexgc | 25.39% | ||
| OM | 19.58% | ||
| PM (TTM) | 12.64% | ||
| GM | N/A | ||
| FCFM | 3.94% |
ROA(3y)13.11%
ROA(5y)12.26%
ROE(3y)39.69%
ROE(5y)35.71%
ROIC(3y)18.26%
ROIC(5y)16.38%
ROICexc(3y)35.61%
ROICexc(5y)34.79%
ROICexgc(3y)36.7%
ROICexgc(5y)37.05%
ROCE(3y)30.05%
ROCE(5y)28.36%
ROICexcg growth 3Y28.39%
ROICexcg growth 5Y-2.71%
ROICexc growth 3Y28.79%
ROICexc growth 5Y0.36%
OM growth 3Y21.29%
OM growth 5Y18.38%
PM growth 3Y23.56%
PM growth 5Y30.06%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 7.58 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 248.26% | ||
| Cap/Sales | 15.7% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 31.19% | ||
| Current Ratio | 3.78 | ||
| Quick Ratio | 3.76 | ||
| Altman-Z | 10.45 |
F-Score5
WACC8.9%
ROIC/WACC1.69
Cap/Depr(3y)96.97%
Cap/Depr(5y)82.14%
Cap/Sales(3y)7.3%
Cap/Sales(5y)6.51%
Profit Quality(3y)122.33%
Profit Quality(5y)118.05%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y44.42%
EPS 5Y32.48%
EPS Q2Q%54.24%
EPS Next Y1.85%
EPS Next 2Y12.15%
EPS Next 3Y20.76%
EPS Next 5Y25.93%
Revenue 1Y (TTM)8.97%
Revenue growth 3Y10.38%
Revenue growth 5Y10.03%
Sales Q2Q%25.06%
Revenue Next Year4.64%
Revenue Next 2Y6.34%
Revenue Next 3Y9.6%
Revenue Next 5Y7.73%
EBIT growth 1Y-14.68%
EBIT growth 3Y33.88%
EBIT growth 5Y30.25%
EBIT Next Year35.87%
EBIT Next 3Y26.93%
EBIT Next 5Y18.62%
FCF growth 1Y-77.46%
FCF growth 3Y33.71%
FCF growth 5Y11.83%
OCF growth 1Y1.63%
OCF growth 3Y38.83%
OCF growth 5Y27.51%