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World Wrestling Entertainment (WWE) Stock Fundamental Analysis

NYSE:WWE - US98156Q1085 - Common Stock

100.65 USD
+2.6 (+2.65%)
Last: 9/11/2023, 8:04:00 PM
100.65 USD
0 (0%)
After Hours: 9/11/2023, 8:04:00 PM
Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to WWE. WWE was compared to 75 industry peers in the Entertainment industry. WWE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WWE has a decent growth rate and is not valued too expensively. These ratings would make WWE suitable for quality investing!


Dividend Valuation Growth Profitability Health

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7

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.
In the past 5 years WWE has always been profitable.
Each year in the past 5 years WWE had a positive operating cash flow.
WWE Yearly Net Income VS EBIT VS OCF VS FCFWWE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

1.2 Ratios

WWE has a Return On Assets of 11.22%. This is amongst the best in the industry. WWE outperforms 96.05% of its industry peers.
WWE's Return On Equity of 18.60% is amongst the best of the industry. WWE outperforms 94.74% of its industry peers.
WWE has a Return On Invested Capital of 15.06%. This is amongst the best in the industry. WWE outperforms 94.74% of its industry peers.
WWE had an Average Return On Invested Capital over the past 3 years of 18.26%. This is below the industry average of 23.16%.
Industry RankSector 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%
WWE Yearly ROA, ROE, ROICWWE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

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.
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.
In the last couple of years the Operating Margin of WWE has grown nicely.
Industry RankSector 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
WWE Yearly Profit, Operating, Gross MarginsWWE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

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8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WWE is creating value.
WWE has less shares outstanding than it did 1 year ago.
WWE has a better debt/assets ratio than last year.
WWE Yearly Shares OutstandingWWE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M
WWE Yearly Total Debt VS Total AssetsWWE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

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.
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.
WWE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
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 RankSector Rank
Debt/Equity 0.43
Debt/FCF 7.58
Altman-Z 10.45
ROIC/WACC1.69
WACC8.9%
WWE Yearly LT Debt VS Equity VS FCFWWE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M

2.3 Liquidity

A Current Ratio of 3.78 indicates that WWE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.78, WWE belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
A Quick Ratio of 3.76 indicates that WWE has no problem at all paying its short term obligations.
The Quick ratio of WWE (3.76) is better than 81.58% of its industry peers.
Industry RankSector Rank
Current Ratio 3.78
Quick Ratio 3.76
WWE Yearly Current Assets VS Current LiabilitesWWE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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6

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%.
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.
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
The Revenue is expected to grow by 7.73% on average over the next years.
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.
WWE Yearly Revenue VS EstimatesWWE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
WWE Yearly EPS VS EstimatesWWE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 39.01, WWE can be considered very expensive at the moment.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.03, WWE is valued a bit more expensive.
WWE is valuated quite expensively with a Price/Forward Earnings ratio of 31.63.
WWE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WWE is cheaper than 67.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. WWE is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 39.01
Fwd PE 31.63
WWE Price Earnings VS Forward Price EarningsWWE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

WWE's Enterprise Value to EBITDA ratio is in line with 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 RankSector Rank
P/FCF 158.69
EV/EBITDA 23.18
WWE Per share dataWWE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
A more expensive valuation may be justified as WWE's earnings are expected to grow with 20.76% in the coming years.
PEG (NY)21.04
PEG (5Y)1.2
EPS Next 2Y12.15%
EPS Next 3Y20.76%

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5

5. Dividend

5.1 Amount

With a yearly dividend of 0.48%, WWE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.82, WWE pays a better dividend. On top of this WWE pays more dividend than 86.84% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, WWE's dividend is way lower than the S&P500 average.
Industry RankSector 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
WWE Yearly Dividends per shareWWE Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.1 0.2 0.3 0.4

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%
WWE Yearly Income VS Free CF VS DividendWWE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M 250M
WWE Dividend Payout.WWE Dividend Payout, showing the Payout Ratio.WWE Dividend Payout.PayoutRetained Earnings

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World Wrestling Entertainment

NYSE:WWE (9/11/2023, 8:04:00 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)08-02 2023-08-02/bmo
Earnings (Next)10-31 2023-10-31/amc
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%