WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
NYSE:WWW - New York Stock Exchange, Inc. - US9780971035 - Common Stock - Currency: USD
Taking everything into account, WWW scores 4 out of 10 in our fundamental rating. WWW was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of WWW while its profitability can be described as average. WWW is not valued too expensively and it also shows a decent growth rate. Finally WWW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WWW had positive earnings in the past year.
WWW had a positive operating cash flow in the past year.
In multiple years WWW reported negative net income over the last 5 years.
WWW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.23%, WWW is in line with its industry, outperforming 56.25% of the companies in the same industry.
WWW's Return On Equity of 22.92% is fine compared to the rest of the industry. WWW outperforms 77.08% of its industry peers.
WWW's Return On Invested Capital of 7.81% is in line compared to the rest of the industry. WWW outperforms 52.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WWW is significantly below the industry average of 13.51%.
The last Return On Invested Capital (7.81%) for WWW is above the 3 year average (4.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 22.92% | ||
| ROIC | 7.81% |
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
Looking at the Profit Margin, with a value of 4.02%, WWW is in line with its industry, outperforming 56.25% of the companies in the same industry.
WWW's Profit Margin has declined in the last couple of years.
WWW has a Operating Margin of 6.69%. This is comparable to the rest of the industry: WWW outperforms 45.83% of its industry peers.
In the last couple of years the Operating Margin of WWW has declined.
WWW's Gross Margin of 44.85% is on the low side compared to the rest of the industry. WWW is outperformed by 62.50% of its industry peers.
In the last couple of years the Gross Margin of WWW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.69% | ||
| PM (TTM) | 4.02% | ||
| GM | 44.85% |
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.
WWW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WWW has less shares outstanding
Compared to 1 year ago, WWW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.71 indicates that WWW is not a great score, but indicates only limited risk for bankruptcy at the moment.
WWW has a Altman-Z score (2.71) which is in line with its industry peers.
The Debt to FCF ratio of WWW is 6.42, which is on the high side as it means it would take WWW, 6.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.42, WWW is in line with its industry, outperforming 45.83% of the companies in the same industry.
A Debt/Equity ratio of 2.26 is on the high side and indicates that WWW has dependencies on debt financing.
WWW has a Debt to Equity ratio of 2.26. This is amonst the worse of the industry: WWW underperforms 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.79
WACC9.94%
2.3 Liquidity
WWW has a Current Ratio of 1.26. 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 1.26. This is amonst the worse of the industry: WWW underperforms 83.33% of its industry peers.
A Quick Ratio of 0.77 indicates that WWW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, WWW is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 10300.00% over the past year.
WWW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.78% yearly.
The Revenue for WWW has decreased by -13.05% in the past year. This is quite bad
Measured over the past years, WWW shows a decrease in Revenue. The Revenue has been decreasing by -5.05% on average per year.
EPS 1Y (TTM)10300%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%260%
Revenue 1Y (TTM)-13.05%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%4.41%
3.2 Future
WWW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.86% yearly.
The Revenue is expected to grow by 5.20% on average over the next years.
EPS Next Y20.53%
EPS Next 2Y22.59%
EPS Next 3Y27.86%
EPS Next 5YN/A
Revenue Next Year3.92%
Revenue Next 2Y4.94%
Revenue Next 3Y5.2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 16.40, WWW is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as WWW.
The average S&P500 Price/Earnings ratio is at 26.25. WWW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.47, which indicates a correct valuation of WWW.
Based on the Price/Forward Earnings ratio, WWW is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, WWW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 12.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WWW is valued a bit more expensive than 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WWW indicates a somewhat cheap valuation: WWW is cheaper than 64.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.48 | ||
| EV/EBITDA | 13.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WWW's earnings are expected to grow with 27.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y22.59%
EPS Next 3Y27.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, WWW has a reasonable but not impressive dividend return.
WWW's Dividend Yield is a higher than the industry average which is at 3.63.
WWW's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
On average, the dividend of WWW grows each year by 11.30%, which is quite nice.
WWW has been paying a dividend for at least 10 years, so it has a reliable track record.
WWW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.3%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
WWW pays out 46.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
WWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP46.21%
EPS Next 2Y22.59%
EPS Next 3Y27.86%
17.06
-0.29 (-1.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners102.89%
Inst Owner Change6.7%
Ins Owners1.49%
Ins Owner Change5.6%
Market Cap1.38B
Analysts80
Price Target19.38 (13.6%)
Short Float %9.82%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend0.41
Dividend Growth(5Y)11.3%
DP46.21%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)32.71%
Min EPS beat(2)-0.37%
Max EPS beat(2)65.78%
EPS beat(4)3
Avg EPS beat(4)30.98%
Min EPS beat(4)-0.37%
Max EPS beat(4)65.78%
EPS beat(8)4
Avg EPS beat(8)109.59%
EPS beat(12)7
Avg EPS beat(12)146.67%
EPS beat(16)11
Avg EPS beat(16)112.36%
Revenue beat(2)2
Avg Revenue beat(2)1.89%
Min Revenue beat(2)0.61%
Max Revenue beat(2)3.17%
Revenue beat(4)4
Avg Revenue beat(4)2.4%
Min Revenue beat(4)0.61%
Max Revenue beat(4)3.42%
Revenue beat(8)8
Avg Revenue beat(8)2.4%
Revenue beat(12)9
Avg Revenue beat(12)1.11%
Revenue beat(16)12
Avg Revenue beat(16)1.24%
PT rev (1m)-16.99%
PT rev (3m)-25%
EPS NQ rev (1m)-12.75%
EPS NQ rev (3m)-27.38%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-18.96%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.4 | ||
| Fwd PE | 12.47 | ||
| P/S | 0.78 | ||
| P/FCF | 12.48 | ||
| P/OCF | 10.36 | ||
| P/B | 4.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.05 |
EPS(TTM)1.04
EY6.1%
EPS(NY)1.37
Fwd EY8.02%
FCF(TTM)1.37
FCFY8.01%
OCF(TTM)1.65
OCFY9.66%
SpS21.87
BVpS3.83
TBVpS-3.99
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 22.92% | ||
| ROCE | 10.46% | ||
| ROIC | 7.81% | ||
| ROICexc | 8.53% | ||
| ROICexgc | 18.76% | ||
| OM | 6.69% | ||
| PM (TTM) | 4.02% | ||
| GM | 44.85% | ||
| FCFM | 6.25% |
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-Score6
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 6.42 | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 90.08% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.9% | ||
| Profit Quality | 155.62% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.71 |
F-Score6
WACC9.94%
ROIC/WACC0.79
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)10300%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%260%
EPS Next Y20.53%
EPS Next 2Y22.59%
EPS Next 3Y27.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.05%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%4.41%
Revenue Next Year3.92%
Revenue Next 2Y4.94%
Revenue Next 3Y5.2%
Revenue Next 5YN/A
EBIT growth 1Y2533.33%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year34.61%
EBIT Next 3Y27.21%
EBIT Next 5YN/A
FCF growth 1Y150.25%
FCF growth 3Y32.2%
FCF growth 5Y-3.21%
OCF growth 1Y172.48%
OCF growth 3Y27.55%
OCF growth 5Y-4.15%