WOLVERINE WORLD WIDE INC (WWW)
US9780971035 - Common Stock
Taking everything into account, WWW scores 3 out of 10 in our fundamental rating. WWW was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of WWW have multiple concerns. WWW has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally WWW also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WWW had positive earnings in the past year.
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.
Of the past 5 years WWW 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.91%, WWW is doing worse than 66.00% of the companies in the same industry.
WWW has a worse Return On Equity (-14.18%) than 68.00% of its industry peers.
WWW has a Return On Invested Capital of 1.41%. This is in the lower half of the industry: WWW underperforms 68.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WWW is significantly below the industry average of 10.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.91% | ||
| ROE | -14.18% | ||
| ROIC | 1.41% |
ROA(3y)-2.3%
ROA(5y)-1.65%
ROE(3y)-20.8%
ROE(5y)-14.1%
ROIC(3y)4.37%
ROIC(5y)4.71%
1.3 Margins
The Operating Margin of WWW (1.19%) is worse than 66.00% of its industry peers.
WWW's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 38.90%, WWW is doing worse than 68.00% of the companies in the same industry.
WWW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.19% | ||
| PM (TTM) | N/A | ||
| GM | 38.9% |
OM growth 3Y-36.96%
OM growth 5Y-36.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.79%
GM growth 5Y-1.12%
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.
WWW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WWW has been reduced compared to a year ago.
2.2 Solvency
WWW has an Altman-Z score of 2.07. 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.
The Altman-Z score of WWW (2.07) is comparable to the rest of the industry.
The Debt to FCF ratio of WWW is 8.59, which is on the high side as it means it would take WWW, 8.59 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.59, WWW is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.27 is on the high side and indicates that WWW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.27, WWW is doing worse than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | 8.59 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.15
WACC9.11%
2.3 Liquidity
WWW has a Current Ratio of 1.18. This is a normal value and indicates that WWW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.18, WWW is doing worse than 86.00% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that WWW may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, WWW is not doing good in the industry: 78.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The earnings per share for WWW have decreased strongly by -97.91% in the last year.
The earnings per share for WWW have been decreasing by -53.00% on average. This is quite bad
The Revenue for WWW has decreased by -16.46% in the past year. This is quite bad
WWW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.03% yearly.
EPS 1Y (TTM)-97.91%
EPS 3Y-62.26%
EPS 5Y-53%
EPS growth Q2Q-135.29%
Revenue 1Y (TTM)-16.46%
Revenue growth 3Y7.79%
Revenue growth 5Y0.03%
Revenue growth Q2Q-20.8%
3.2 Future
WWW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 208.02% yearly.
WWW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.26% yearly.
EPS Next Y1402.88%
EPS Next 2Y374.86%
EPS Next 3Y208.02%
EPS Next 5YN/A
Revenue Next Year-22.12%
Revenue Next 2Y-9.39%
Revenue Next 3Y-5.26%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 212.40, the valuation of WWW can be described as expensive.
WWW's Price/Earnings ratio is a bit more expensive when compared to the industry. WWW is more expensive than 66.00% of the companies in the same industry.
WWW's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.25.
With a Price/Forward Earnings ratio of 14.13, WWW is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WWW indicates a somewhat cheap valuation: WWW is cheaper than 66.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.67. WWW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 212.4 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
62.00% of the companies in the same industry are cheaper than WWW, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WWW indicates a somewhat cheap valuation: WWW is cheaper than 78.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.92 | ||
| EV/EBITDA | 20.8 |
4.3 Compensation for Growth
WWW's 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 208.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y374.86%
EPS Next 3Y208.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, WWW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.97, WWW pays a better dividend. On top of this WWW pays more dividend than 92.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, WWW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of WWW is nicely growing with an annual growth rate of 11.07%!
WWW has been paying a dividend for at least 10 years, so it has a reliable track record.
WWW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.07%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
The earnings of WWW are negative and hence is the payout ratio. WWW will probably not be able to sustain this dividend level.
The dividend of WWW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-82.53%
EPS Next 2Y374.86%
EPS Next 3Y208.02%
WOLVERINE WORLD WIDE INC
NYSE:WWW (4/24/2024, 7:04:00 PM)
After market: 10.62 0 (0%)10.62
+0.2 (+1.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap848.64M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Dividend Growth(5Y)
DP
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Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 212.4 | ||
| Fwd PE | 14.13 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.91% | ||
| ROE | -14.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.19% | ||
| PM (TTM) | N/A | ||
| GM | 38.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-97.91%
EPS 3Y-62.26%
EPS 5Y
EPS growth Q2Q
EPS Next Y1402.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.46%
Revenue growth 3Y7.79%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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