WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
NYSE:WWW - New York Stock Exchange, Inc. - US9780971035 - Common Stock - Currency: USD
WWW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 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. WWW has a correct valuation and a medium growth rate. 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.
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 Return On Assets (2.73%) which is comparable to the rest of the industry.
WWW has a better Return On Equity (14.84%) than 67.35% of its industry peers.
With a Return On Invested Capital value of 7.06%, WWW perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WWW is significantly below the industry average of 13.58%.
The last Return On Invested Capital (7.06%) for WWW is above the 3 year average (4.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 14.84% | ||
| ROIC | 7.06% |
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 2.60%. This is comparable to the rest of the industry: WWW outperforms 51.02% of its industry peers.
In the last couple of years the Profit Margin of WWW has declined.
WWW's Operating Margin of 5.80% is in line compared to the rest of the industry. WWW outperforms 48.98% of its industry peers.
In the last couple of years the Operating Margin of WWW has declined.
WWW has a Gross Margin (44.53%) 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 | 5.8% | ||
| PM (TTM) | 2.6% | ||
| GM | 44.53% |
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.
Compared to 1 year ago, WWW has an improved debt to assets ratio.
2.2 Solvency
WWW has an Altman-Z score of 2.58. 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 2.58 is in line compared to the rest of the industry. WWW outperforms 46.94% of its industry peers.
WWW has a debt to FCF ratio of 4.05. This is a neutral value as WWW would need 4.05 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.05, WWW perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
WWW has a Debt/Equity ratio of 2.08. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.08, WWW is doing worse than 87.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 4.05 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.73
WACC9.64%
2.3 Liquidity
WWW has a Current Ratio of 1.29. This is a normal value and indicates that WWW is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.29, WWW is not doing good in the industry: 79.59% of the companies in the same industry are doing better.
A Quick Ratio of 0.84 indicates that WWW may have some problems paying its short term obligations.
The Quick ratio of WWW (0.84) is worse than 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1720.00% over the past year.
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 for WWW has decreased by -21.75% 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)1720%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%240%
Revenue 1Y (TTM)-21.75%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%-5.08%
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 27.78% on average per year.
The Revenue is expected to grow by 23.48% on average over the next years. This is a very strong growth
EPS Next Y23.31%
EPS Next 2Y23%
EPS Next 3Y27.78%
EPS Next 5YN/A
Revenue Next Year4.09%
Revenue Next 2Y4.69%
Revenue Next 3Y23.48%
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
The Price/Earnings ratio is 15.47, which indicates a correct valuation of WWW.
Compared to the rest of the industry, the Price/Earnings ratio of WWW is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.22, WWW is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.55 indicates a correct valuation of WWW.
Based on the Price/Forward Earnings ratio, WWW is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WWW to the average of the S&P500 Index (20.86), we can say WWW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
WWW's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WWW indicates a somewhat cheap valuation: WWW is cheaper than 77.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 12.24 |
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 27.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y23%
EPS Next 3Y27.78%
5. Dividend
5.1 Amount
WWW has a Yearly Dividend Yield of 3.04%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of WWW has falen by -36.95%. 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 4.03, WWW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, WWW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of WWW is nicely growing with an annual growth rate of 11.30%!
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)11.3%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
WWW pays out 71.27% of its income as dividend. This is not a sustainable payout ratio.
The dividend of WWW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.27%
EPS Next 2Y23%
EPS Next 3Y27.78%
14.08
+0.93 (+7.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners102.89%
Inst Owner Change0.39%
Ins Owners1.49%
Ins Owner Change4.38%
Market Cap1.14B
Analysts80
Price Target19.61 (39.28%)
Short Float %10.1%
Short Ratio4.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend0.41
Dividend Growth(5Y)11.3%
DP71.27%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.36%
Min EPS beat(2)-0.37%
Max EPS beat(2)33.08%
EPS beat(4)3
Avg EPS beat(4)206.28%
Min EPS beat(4)-0.37%
Max EPS beat(4)766.99%
EPS beat(8)4
Avg EPS beat(8)124.3%
EPS beat(12)7
Avg EPS beat(12)141.27%
EPS beat(16)10
Avg EPS beat(16)108.21%
Revenue beat(2)2
Avg Revenue beat(2)2.01%
Min Revenue beat(2)0.61%
Max Revenue beat(2)3.42%
Revenue beat(4)4
Avg Revenue beat(4)3.72%
Min Revenue beat(4)0.61%
Max Revenue beat(4)8.48%
Revenue beat(8)8
Avg Revenue beat(8)2.35%
Revenue beat(12)9
Avg Revenue beat(12)0.9%
Revenue beat(16)11
Avg Revenue beat(16)0.97%
PT rev (1m)-16.02%
PT rev (3m)-24.45%
EPS NQ rev (1m)3.61%
EPS NQ rev (3m)-56.9%
EPS NY rev (1m)-7.57%
EPS NY rev (3m)-18.79%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-7.94%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.47 | ||
| Fwd PE | 12.55 | ||
| P/S | 0.65 | ||
| P/FCF | 7.14 | ||
| P/OCF | 6.33 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.24 |
EPS(TTM)0.91
EY6.46%
EPS(NY)1.12
Fwd EY7.97%
FCF(TTM)1.97
FCFY14.02%
OCF(TTM)2.22
OCFY15.79%
SpS21.66
BVpS3.79
TBVpS-3.97
PEG (NY)0.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.73% | ||
| ROE | 14.84% | ||
| ROCE | 8.96% | ||
| ROIC | 7.06% | ||
| ROICexc | 8.08% | ||
| ROICexgc | 20.05% | ||
| OM | 5.8% | ||
| PM (TTM) | 2.6% | ||
| GM | 44.53% | ||
| FCFM | 9.11% |
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 | 2.08 | ||
| Debt/FCF | 4.05 | ||
| Debt/EBITDA | 4.98 | ||
| Cap/Depr | 77.1% | ||
| Cap/Sales | 1.15% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 140.7% | ||
| Profit Quality | 350.66% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.58 |
F-Score6
WACC9.64%
ROIC/WACC0.73
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)1720%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%240%
EPS Next Y23.31%
EPS Next 2Y23%
EPS Next 3Y27.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.75%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%-5.08%
Revenue Next Year4.09%
Revenue Next 2Y4.69%
Revenue Next 3Y23.48%
Revenue Next 5YN/A
EBIT growth 1Y281.27%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year46.84%
EBIT Next 3Y24.72%
EBIT Next 5YN/A
FCF growth 1Y49.16%
FCF growth 3Y32.2%
FCF growth 5Y-3.21%
OCF growth 1Y47.87%
OCF growth 3Y27.55%
OCF growth 5Y-4.15%