WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
USA - NYSE:WWW - US9780971035 - Common Stock
25.76 USD
-0.56 (-2.13%)
25.76 USD
0 (0%)
WWW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 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. WWW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WWW was profitable.
WWW had a positive operating cash flow in the past year.
In multiple years WWW reported negative net income over the last 5 years.
Of the past 5 years WWW 4 years had a positive operating cash flow.
1.2 Ratios
WWW has a better Return On Assets (4.61%) than 64.58% of its industry peers.
WWW's Return On Equity of 24.24% is fine compared to the rest of the industry. WWW outperforms 79.17% of its industry peers.
WWW has a Return On Invested Capital (8.18%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for WWW is significantly below the industry average of 12.15%.
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
The Profit Margin of WWW (4.58%) is better than 64.58% of its industry peers.
In the last couple of years the Profit Margin of WWW has declined.
WWW has a Operating Margin of 6.97%. This is comparable to the rest of the industry: WWW outperforms 52.08% of its industry peers.
In the last couple of years the Operating Margin of WWW has declined.
WWW has a Gross Margin (45.88%) which is in line with 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 2.89. 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 of 2.89. This is comparable to the rest of the industry: WWW outperforms 52.08% of its industry peers.
The Debt to FCF ratio of WWW is 5.52, which is a neutral value as it means it would take WWW, 5.52 years of fcf income to pay off all of its debts.
WWW has a Debt to FCF ratio (5.52) which is in line with its industry peers.
WWW has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external 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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.81
WACC10.04%
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 85.42% of its industry peers.
A Quick Ratio of 0.75 indicates that WWW may have some problems paying its short term obligations.
WWW has a worse Quick ratio (0.75) than 79.17% 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 34.45% on average per year.
The Revenue is expected to grow by 6.97% on average over the next years.
EPS Next Y45.84%
EPS Next 2Y33.3%
EPS Next 3Y34.45%
EPS Next 5YN/A
Revenue Next Year7.22%
Revenue Next 2Y6.89%
Revenue Next 3Y6.97%
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
A Price/Earnings ratio of 20.77 indicates a rather expensive valuation of WWW.
WWW's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.40, WWW is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.93, the valuation of WWW can be described as correct.
WWW's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of WWW to the average of the S&P500 Index (22.94), we can say WWW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
66.67% 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 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.31 | ||
| EV/EBITDA | 16.88 |
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.
A more expensive valuation may be justified as WWW's earnings are expected to grow with 34.45% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y33.3%
EPS Next 3Y34.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, WWW has a reasonable but not impressive dividend return.
WWW's Dividend Yield is a higher than the industry average which is at 3.29.
Compared to the average S&P500 Dividend Yield of 2.38, WWW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
On average, the dividend of WWW grows each year by 11.30%, which is quite nice.
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 39.57% 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.
DP39.57%
EPS Next 2Y33.3%
EPS Next 3Y34.45%
25.76
-0.56 (-2.13%)
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%
Ins Owners1.11%
Ins Owner Change0.72%
Market Cap2.09B
Analysts82.86
Price Target34.34 (33.31%)
Short Float %9.88%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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)2.71%
PT rev (3m)62.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.43%
EPS NY rev (1m)3.46%
EPS NY rev (3m)18.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 15.93 | ||
| P/S | 1.15 | ||
| P/FCF | 16.31 | ||
| P/OCF | 13.82 | ||
| P/B | 6.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.88 |
EPS(TTM)1.24
EY4.81%
EPS(NY)1.62
Fwd EY6.28%
FCF(TTM)1.58
FCFY6.13%
OCF(TTM)1.86
OCFY7.23%
SpS22.42
BVpS4.23
TBVpS-3.71
PEG (NY)0.45
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 | 2.89 |
F-Score7
WACC10.04%
ROIC/WACC0.81
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 Y45.84%
EPS Next 2Y33.3%
EPS Next 3Y34.45%
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 Year7.22%
Revenue Next 2Y6.89%
Revenue Next 3Y6.97%
Revenue Next 5YN/A
EBIT growth 1Y609.64%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year48.91%
EBIT Next 3Y28.32%
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%