WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
NYSE:WWW - US9780971035 - Common Stock
30.72 USD
+1.85 (+6.41%)
30.73 USD
+0.01 (+0.03%)
We assign a fundamental rating of 4 out of 10 to WWW. WWW was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. WWW has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, WWW is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year WWW was profitable.
In the past year WWW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WWW reported negative net income in multiple years.
WWW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
WWW has a Return On Assets of 4.61%. This is comparable to the rest of the industry: WWW outperforms 60.00% of its industry peers.
With an excellent Return On Equity value of 24.24%, WWW belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.18%, WWW is in line with its industry, outperforming 58.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WWW is significantly below the industry average of 11.02%.
The 3 year average ROIC (4.86%) for WWW is below the current ROIC(8.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 24.24% | ||
| ROIC | 8.18% |
ROA(3y)-2.24%
ROA(5y)-2.11%
ROE(3y)-19.36%
ROE(5y)-14.37%
ROIC(3y)4.86%
ROIC(5y)5.01%
1.3 Margins
WWW has a Profit Margin of 4.58%. This is in the better half of the industry: WWW outperforms 62.00% of its industry peers.
WWW's Profit Margin has declined in the last couple of years.
WWW has a Operating Margin (6.97%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WWW has declined.
WWW has a Gross Margin of 45.88%. This is comparable to the rest of the industry: WWW outperforms 42.00% of its industry peers.
In the last couple of years the Gross Margin of WWW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.97% | ||
| PM (TTM) | 4.58% | ||
| GM | 45.88% |
OM growth 3Y-3.46%
OM growth 5Y-5.06%
PM growth 3Y-1.91%
PM growth 5Y-13.78%
GM growth 3Y1.45%
GM growth 5Y1.85%
2. Health
2.1 Basic Checks
WWW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WWW has been increased compared to 1 year ago.
The number of shares outstanding for WWW has been reduced compared to 5 years ago.
WWW has a better debt/assets ratio than last year.
2.2 Solvency
WWW has an Altman-Z score of 2.97. This is not the best score and indicates that WWW is in the grey zone with still only limited risk for bankruptcy at the moment.
WWW has a Altman-Z score (2.97) which is comparable to the rest of the industry.
WWW has a debt to FCF ratio of 5.52. This is a neutral value as WWW would need 5.52 years to pay back of all of its debts.
WWW has a Debt to FCF ratio (5.52) which is in line with its industry peers.
A Debt/Equity ratio of 2.03 is on the high side and indicates that WWW has dependencies on debt financing.
WWW's Debt to Equity ratio of 2.03 is on the low side compared to the rest of the industry. WWW is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.91
WACC9.03%
2.3 Liquidity
WWW has a Current Ratio of 1.24. This is a normal value and indicates that WWW is financially healthy and should not expect problems in meeting its short term obligations.
WWW has a Current ratio of 1.24. This is amonst the worse of the industry: WWW underperforms 84.00% of its industry peers.
A Quick Ratio of 0.75 indicates that WWW may have some problems paying its short term obligations.
WWW's Quick ratio of 0.75 is on the low side compared to the rest of the industry. WWW is outperformed by 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
WWW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 4233.33%, which is quite impressive.
Measured over the past years, WWW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.78% on average per year.
The Revenue has decreased by -2.83% in the past year.
WWW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.05% yearly.
EPS 1Y (TTM)4233.33%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%133.33%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%11.52%
3.2 Future
Based on estimates for the next years, WWW will show a very strong growth in Earnings Per Share. The EPS will grow by 27.94% on average per year.
WWW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.90% yearly.
EPS Next Y23.42%
EPS Next 2Y23.89%
EPS Next 3Y27.94%
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y5.48%
Revenue Next 3Y5.9%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
WWW is valuated rather expensively with a Price/Earnings ratio of 24.77.
WWW's Price/Earnings is on the same level as the industry average.
WWW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.24.
The Price/Forward Earnings ratio is 21.99, which indicates a rather expensive current valuation of WWW.
Based on the Price/Forward Earnings ratio, WWW is valued a bit more expensive than the industry average as 62.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of WWW to the average of the S&P500 Index (35.82), we can say WWW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 21.99 |
4.2 Price Multiples
66.00% of the companies in the same industry are cheaper than WWW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, WWW is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.4 | ||
| EV/EBITDA | 18.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WWW's earnings are expected to grow with 27.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y23.89%
EPS Next 3Y27.94%
5. Dividend
5.1 Amount
WWW has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.65, WWW pays a bit more dividend than its industry peers.
WWW's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of WWW is nicely growing with an annual growth rate of 11.30%!
WWW has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WWW decreased recently.
Dividend Growth(5Y)11.3%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
WWW pays out 39.57% of its income as dividend. This is a sustainable payout ratio.
The dividend of WWW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.57%
EPS Next 2Y23.89%
EPS Next 3Y27.94%
30.72
+1.85 (+6.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners107.79%
Inst Owner Change3.34%
Ins Owners1.11%
Ins Owner Change1.53%
Market Cap2.50B
Analysts82.86
Price Target32.75 (6.61%)
Short Float %11.08%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.41
Dividend Growth(5Y)11.3%
DP39.57%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.74%
Min EPS beat(2)47.69%
Max EPS beat(2)65.78%
EPS beat(4)3
Avg EPS beat(4)36.55%
Min EPS beat(4)-0.37%
Max EPS beat(4)65.78%
EPS beat(8)5
Avg EPS beat(8)115.76%
EPS beat(12)7
Avg EPS beat(12)150.55%
EPS beat(16)11
Avg EPS beat(16)113.25%
Revenue beat(2)2
Avg Revenue beat(2)3.61%
Min Revenue beat(2)3.17%
Max Revenue beat(2)4.05%
Revenue beat(4)4
Avg Revenue beat(4)2.81%
Min Revenue beat(4)0.61%
Max Revenue beat(4)4.05%
Revenue beat(8)8
Avg Revenue beat(8)2.83%
Revenue beat(12)10
Avg Revenue beat(12)1.8%
Revenue beat(16)12
Avg Revenue beat(16)0.91%
PT rev (1m)19.79%
PT rev (3m)30.99%
EPS NQ rev (1m)22.02%
EPS NQ rev (3m)-5.46%
EPS NY rev (1m)0%
EPS NY rev (3m)2.39%
Revenue NQ rev (1m)1.66%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.77 | ||
| Fwd PE | 21.99 | ||
| P/S | 1.37 | ||
| P/FCF | 19.4 | ||
| P/OCF | 16.44 | ||
| P/B | 7.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.2 |
EPS(TTM)1.24
EY4.04%
EPS(NY)1.4
Fwd EY4.55%
FCF(TTM)1.58
FCFY5.15%
OCF(TTM)1.87
OCFY6.08%
SpS22.48
BVpS4.24
TBVpS-3.72
PEG (NY)1.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 24.24% | ||
| ROCE | 10.92% | ||
| ROIC | 8.18% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 20.8% | ||
| OM | 6.97% | ||
| PM (TTM) | 4.58% | ||
| GM | 45.88% | ||
| FCFM | 7.04% |
ROA(3y)-2.24%
ROA(5y)-2.11%
ROE(3y)-19.36%
ROE(5y)-14.37%
ROIC(3y)4.86%
ROIC(5y)5.01%
ROICexc(3y)5.42%
ROICexc(5y)5.66%
ROICexgc(3y)12.05%
ROICexgc(5y)14.97%
ROCE(3y)6.88%
ROCE(5y)6.81%
ROICexcg growth 3Y-5.91%
ROICexcg growth 5Y1.04%
ROICexc growth 3Y5.46%
ROICexc growth 5Y1.13%
OM growth 3Y-3.46%
OM growth 5Y-5.06%
PM growth 3Y-1.91%
PM growth 5Y-13.78%
GM growth 3Y1.45%
GM growth 5Y1.85%
F-Score7
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 5.52 | ||
| Debt/EBITDA | 4.59 | ||
| Cap/Depr | 90.94% | ||
| Cap/Sales | 1.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.41% | ||
| Profit Quality | 153.84% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.97 |
F-Score7
WACC9.03%
ROIC/WACC0.91
Cap/Depr(3y)74.73%
Cap/Depr(5y)61.72%
Cap/Sales(3y)1.05%
Cap/Sales(5y)0.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4233.33%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%133.33%
EPS Next Y23.42%
EPS Next 2Y23.89%
EPS Next 3Y27.94%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%11.52%
Revenue Next Year5.06%
Revenue Next 2Y5.48%
Revenue Next 3Y5.9%
Revenue Next 5YN/A
EBIT growth 1Y609.64%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year36.78%
EBIT Next 3Y27.21%
EBIT Next 5YN/A
FCF growth 1Y59.78%
FCF growth 3Y32.2%
FCF growth 5Y-3.21%
OCF growth 1Y31.77%
OCF growth 3Y27.55%
OCF growth 5Y-4.15%