WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WWW - US9780971035 - Common Stock
15.9 USD
+1.25 (+8.53%)
15.9 USD
0 (0%)
WWW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. While WWW is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on WWW.
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
WWW has a Return On Assets of 4.98%. This is in the better half of the industry: WWW outperforms 70.83% of its industry peers.
WWW has a Return On Equity of 22.56%. This is in the better half of the industry: WWW outperforms 77.08% of its industry peers.
WWW has a better Return On Invested Capital (8.97%) than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WWW is significantly below the industry average of 12.21%.
The 3 year average ROIC (4.86%) for WWW is below the current ROIC(8.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 22.56% | ||
| ROIC | 8.97% |
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
The Profit Margin of WWW (4.59%) is better than 68.75% of its industry peers.
WWW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.55%, WWW is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
In the last couple of years the Operating Margin of WWW has declined.
WWW has a Gross Margin (46.43%) which is comparable to the rest of the industry.
WWW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.55% | ||
| PM (TTM) | 4.59% | ||
| GM | 46.43% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WWW is destroying value.
WWW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WWW has been reduced compared to 5 years ago.
Compared to 1 year ago, WWW has an improved debt to assets ratio.
2.2 Solvency
WWW has an Altman-Z score of 2.75. 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's Altman-Z score of 2.75 is in line compared to the rest of the industry. WWW outperforms 56.25% of its industry peers.
WWW has a debt to FCF ratio of 12.46. This is a negative value and a sign of low solvency as WWW would need 12.46 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.46, WWW is in line with its industry, outperforming 43.75% of the companies in the same industry.
A Debt/Equity ratio of 1.80 is on the high side and indicates that WWW has dependencies on debt financing.
WWW's Debt to Equity ratio of 1.80 is on the low side compared to the rest of the industry. WWW is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 12.46 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.9
WACC10%
2.3 Liquidity
WWW has a Current Ratio of 1.34. 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 worse Current ratio (1.34) than 83.33% of its industry peers.
A Quick Ratio of 0.79 indicates that WWW may have some problems paying its short term obligations.
With a Quick ratio value of 0.79, WWW is not doing good in the industry: 77.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
WWW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 584.21%, which is quite impressive.
WWW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.78% yearly.
WWW shows a small growth in Revenue. In the last year, the Revenue has grown by 3.61%.
The Revenue has been decreasing by -5.05% on average over the past years.
EPS 1Y (TTM)584.21%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%20.69%
Revenue 1Y (TTM)3.61%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%6.84%
3.2 Future
WWW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.48% yearly.
WWW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y47.62%
EPS Next 2Y34.29%
EPS Next 3Y33.48%
EPS Next 5YN/A
Revenue Next Year7.22%
Revenue Next 2Y6.87%
Revenue Next 3Y6.57%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WWW is valuated correctly with a Price/Earnings ratio of 12.23.
Based on the Price/Earnings ratio, WWW is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WWW to the average of the S&P500 Index (25.45), we can say WWW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.69, the valuation of WWW can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WWW indicates a rather cheap valuation: WWW is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. WWW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
WWW's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, WWW is valued a bit cheaper than 64.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.79 | ||
| EV/EBITDA | 9.6 |
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 33.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y34.29%
EPS Next 3Y33.48%
5. Dividend
5.1 Amount
WWW has a Yearly Dividend Yield of 1.61%.
In the last 3 months the price of WWW has falen by -48.24%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.51, WWW pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, WWW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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.
WWW has decreased its dividend recently.
Dividend Growth(5Y)11.3%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
WWW pays out 38.94% of its income as dividend. This is a sustainable payout ratio.
WWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.94%
EPS Next 2Y34.29%
EPS Next 3Y33.48%
15.9
+1.25 (+8.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners110.59%
Inst Owner Change0.97%
Ins Owners1.11%
Ins Owner Change-0.97%
Market Cap1.29B
Revenue(TTM)1.85B
Net Income(TTM)85.00M
Analysts82.86
Price Target24.82 (56.1%)
Short Float %11.16%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.41
Dividend Growth(5Y)11.3%
DP38.94%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.41%
Min EPS beat(2)5.13%
Max EPS beat(2)47.69%
EPS beat(4)3
Avg EPS beat(4)29.56%
Min EPS beat(4)-0.37%
Max EPS beat(4)65.78%
EPS beat(8)6
Avg EPS beat(8)116.78%
EPS beat(12)8
Avg EPS beat(12)152.09%
EPS beat(16)11
Avg EPS beat(16)113.42%
Revenue beat(2)2
Avg Revenue beat(2)2.31%
Min Revenue beat(2)0.58%
Max Revenue beat(2)4.05%
Revenue beat(4)4
Avg Revenue beat(4)2.1%
Min Revenue beat(4)0.58%
Max Revenue beat(4)4.05%
Revenue beat(8)8
Avg Revenue beat(8)2.9%
Revenue beat(12)11
Avg Revenue beat(12)2.15%
Revenue beat(16)13
Avg Revenue beat(16)1.16%
PT rev (1m)0%
PT rev (3m)35.27%
EPS NQ rev (1m)-3.86%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)1.22%
EPS NY rev (3m)19.6%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.7 | ||
| P/FCF | 23.79 | ||
| P/OCF | 16.95 | ||
| P/B | 3.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)1.3
EY8.18%
EPS(NY)1.64
Fwd EY10.32%
FCF(TTM)0.67
FCFY4.2%
OCF(TTM)0.94
OCFY5.9%
SpS22.79
BVpS4.64
TBVpS-3.25
PEG (NY)0.26
PEG (5Y)N/A
Graham Number11.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 22.56% | ||
| ROCE | 11.92% | ||
| ROIC | 8.97% | ||
| ROICexc | 10% | ||
| ROICexgc | 22.12% | ||
| OM | 7.55% | ||
| PM (TTM) | 4.59% | ||
| GM | 46.43% | ||
| FCFM | 2.93% |
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%
ROICexgc growth 3Y-5.91%
ROICexgc 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 Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 12.46 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 80.81% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.66% | ||
| Profit Quality | 63.88% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.75 |
F-Score7
WACC10%
ROIC/WACC0.9
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)584.21%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%20.69%
EPS Next Y47.62%
EPS Next 2Y34.29%
EPS Next 3Y33.48%
EPS Next 5YN/A
Revenue 1Y (TTM)3.61%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%6.84%
Revenue Next Year7.22%
Revenue Next 2Y6.87%
Revenue Next 3Y6.57%
Revenue Next 5YN/A
EBIT growth 1Y1847.5%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year48.91%
EBIT Next 3Y28.32%
EBIT Next 5YN/A
FCF growth 1Y-81.07%
FCF growth 3Y32.2%
FCF growth 5Y-3.21%
OCF growth 1Y-76.06%
OCF growth 3Y27.55%
OCF growth 5Y-4.15%
WOLVERINE WORLD WIDE INC / WWW FAQ
What is the fundamental rating for WWW stock?
ChartMill assigns a fundamental rating of 5 / 10 to WWW.
What is the valuation status for WWW stock?
ChartMill assigns a valuation rating of 7 / 10 to WOLVERINE WORLD WIDE INC (WWW). This can be considered as Undervalued.
What is the profitability of WWW stock?
WOLVERINE WORLD WIDE INC (WWW) has a profitability rating of 5 / 10.
What are the PE and PB ratios of WOLVERINE WORLD WIDE INC (WWW) stock?
The Price/Earnings (PE) ratio for WOLVERINE WORLD WIDE INC (WWW) is 12.23 and the Price/Book (PB) ratio is 3.43.
Is the dividend of WOLVERINE WORLD WIDE INC sustainable?
The dividend rating of WOLVERINE WORLD WIDE INC (WWW) is 5 / 10 and the dividend payout ratio is 38.94%.