WARNER BROS DISCOVERY INC (WBD)
US9344231041 - Common Stock
Overall WBD gets a fundamental rating of 2 out of 10. We evaluated WBD against 72 industry peers in the Entertainment industry. Both the profitability and financial health of WBD have multiple concerns. While showing a medium growth rate, WBD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WBD had negative earnings in the past year.
In the past year WBD had a positive cash flow from operations.
In multiple years WBD reported negative net income over the last 5 years.
Each year in the past 5 years WBD had a positive operating cash flow.
1.2 Ratios
WBD has a worse Return On Assets (-10.55%) than 73.24% of its industry peers.
The Return On Equity of WBD (-31.96%) is worse than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.55% | ||
| ROE | -31.96% | ||
| ROIC | N/A |
ROA(3y)-1.94%
ROA(5y)0.28%
ROE(3y)-5.31%
ROE(5y)1.66%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of WBD (41.87%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of WBD has declined.
The Profit Margin and Operating Margin are not available for WBD so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.87% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.62%
GM growth 5Y-9.11%
2. Health
2.1 Basic Checks
WBD does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, WBD has more shares outstanding
The number of shares outstanding for WBD has been increased compared to 5 years ago.
The debt/assets ratio for WBD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.39, we must say that WBD is in the distress zone and has some risk of bankruptcy.
WBD's Altman-Z score of 0.39 is in line compared to the rest of the industry. WBD outperforms 42.25% of its industry peers.
The Debt to FCF ratio of WBD is 7.58, which is on the high side as it means it would take WBD, 7.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WBD (7.58) is better than 69.01% of its industry peers.
WBD has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.06, WBD is not doing good in the industry: 67.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.58 | ||
| Altman-Z | 0.39 |
ROIC/WACCN/A
WACC5.74%
2.3 Liquidity
WBD has a Current Ratio of 0.80. This is a bad value and indicates that WBD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of WBD (0.80) is comparable to the rest of the industry.
WBD has a Quick Ratio of 0.80. This is a bad value and indicates that WBD is not financially healthy enough and could expect problems in meeting its short term obligations.
WBD's Quick ratio of 0.80 is in line compared to the rest of the industry. WBD outperforms 42.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
WBD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.61%, which is quite impressive.
Looking at the last year, WBD shows a decrease in Revenue. The Revenue has decreased by -5.87% in the last year.
WBD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.39% yearly.
EPS 1Y (TTM)55.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.41%
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y57.03%
Revenue growth 5Y31.39%
Sales Q2Q%-3.57%
3.2 Future
WBD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.83% yearly.
WBD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.16% yearly.
EPS Next Y-252.65%
EPS Next 2Y37.65%
EPS Next 3Y24.8%
EPS Next 5Y19.83%
Revenue Next Year-4.56%
Revenue Next 2Y-2.02%
Revenue Next 3Y-1.03%
Revenue Next 5Y0.16%
3.3 Evolution
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
WBD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for WBD. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
88.73% of the companies in the same industry are more expensive than WBD, based on the Enterprise Value to EBITDA ratio.
WBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WBD is cheaper than 97.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.94 | ||
| EV/EBITDA | 3 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WBD's earnings are expected to grow with 24.80% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y37.65%
EPS Next 3Y24.8%
5. Dividend
5.1 Amount
WBD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WARNER BROS DISCOVERY INC
NASDAQ:WBD (12/20/2024, 8:00:01 PM)
After market: 10.69 0 (0%)10.69
+0.2 (+1.91%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners63.25%
Inst Owner Change2.1%
Ins Owners1.16%
Ins Owner Change0%
Market Cap26.22B
Analysts71.76
Price Target11.6 (8.51%)
Short Float %4.26%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)49.5%
Min EPS beat(2)-58.73%
Max EPS beat(2)157.73%
EPS beat(4)1
Avg EPS beat(4)-23.61%
Min EPS beat(4)-127.48%
Max EPS beat(4)157.73%
EPS beat(8)1
Avg EPS beat(8)-1229.72%
EPS beat(12)3
Avg EPS beat(12)-410.27%
EPS beat(16)5
Avg EPS beat(16)-311.02%
Revenue beat(2)0
Avg Revenue beat(2)-3.64%
Min Revenue beat(2)-4.51%
Max Revenue beat(2)-2.77%
Revenue beat(4)0
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-4.51%
Max Revenue beat(4)-1.57%
Revenue beat(8)0
Avg Revenue beat(8)-2.62%
Revenue beat(12)1
Avg Revenue beat(12)-8.38%
Revenue beat(16)3
Avg Revenue beat(16)-6.18%
PT rev (1m)9.03%
PT rev (3m)8.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.64%
EPS NY rev (1m)1.69%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.4%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.66 | ||
| P/FCF | 4.94 | ||
| P/OCF | 4.2 | ||
| P/B | 0.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3 |
EPS(TTM)-0.87
EYN/A
EPS(NY)-0.13
Fwd EYN/A
FCF(TTM)2.16
FCFY20.24%
OCF(TTM)2.54
OCFY23.79%
SpS16.13
BVpS14.31
TBVpS-18.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.55% | ||
| ROE | -31.96% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.87% | ||
| FCFM | 13.41% |
ROA(3y)-1.94%
ROA(5y)0.28%
ROE(3y)-5.31%
ROE(5y)1.66%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.62%
GM growth 5Y-9.11%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.58 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 4.34% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 29.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.39 |
F-Score5
WACC5.74%
ROIC/WACCN/A
Cap/Depr(3y)5.84%
Cap/Depr(5y)6.75%
Cap/Sales(3y)3.05%
Cap/Sales(5y)3.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)55.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.41%
EPS Next Y-252.65%
EPS Next 2Y37.65%
EPS Next 3Y24.8%
EPS Next 5Y19.83%
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y57.03%
Revenue growth 5Y31.39%
Sales Q2Q%-3.57%
Revenue Next Year-4.56%
Revenue Next 2Y-2.02%
Revenue Next 3Y-1.03%
Revenue Next 5Y0.16%
EBIT growth 1Y65.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1360.87%
EBIT Next 3Y148.73%
EBIT Next 5Y73.86%
FCF growth 1Y227.86%
FCF growth 3Y38.14%
FCF growth 5Y20.46%
OCF growth 1Y166.35%
OCF growth 3Y39.76%
OCF growth 5Y23.75%