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WARNER BROS DISCOVERY INC (WBD) Stock Fundamental Analysis

NASDAQ:WBD - Nasdaq - US9344231041 - Common Stock - Currency: USD

11.04  +0.15 (+1.38%)

After market: 11.05 +0.01 (+0.09%)

Fundamental Rating

2

WBD gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 71 industry peers in the Entertainment industry. WBD may be in some trouble as it scores bad on both profitability and health. WBD is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year WBD has reported negative net income.
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.
WBD Yearly Net Income VS EBIT VS OCF VS FCFWBD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B

1.2 Ratios

WBD has a Return On Assets of -10.55%. This is in the lower half of the industry: WBD underperforms 72.73% of its industry peers.
The Return On Equity of WBD (-31.96%) is worse than 62.12% of its industry peers.
Industry RankSector 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
WBD Yearly ROA, ROE, ROICWBD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10

1.3 Margins

With a Gross Margin value of 41.87%, WBD perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
In the last couple of years the Gross Margin of WBD has declined.
WBD does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector 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%
WBD Yearly Profit, Operating, Gross MarginsWBD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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2

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
WBD has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WBD has an improved debt to assets ratio.
WBD Yearly Shares OutstandingWBD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
WBD Yearly Total Debt VS Total AssetsWBD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B 100B

2.2 Solvency

Based on the Altman-Z score of 0.40, we must say that WBD is in the distress zone and has some risk of bankruptcy.
WBD has a Altman-Z score (0.40) which is in line with 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.
WBD's Debt to FCF ratio of 7.58 is fine compared to the rest of the industry. WBD outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that WBD has dependencies on debt financing.
WBD's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. WBD is outperformed by 65.15% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.06
Debt/FCF 7.58
Altman-Z 0.4
ROIC/WACCN/A
WACC6.65%
WBD Yearly LT Debt VS Equity VS FCFWBD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.3 Liquidity

A Current Ratio of 0.80 indicates that WBD may have some problems paying its short term obligations.
WBD's Current ratio of 0.80 is in line compared to the rest of the industry. WBD outperforms 40.91% of its industry peers.
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 has a Quick ratio (0.80) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 0.8
Quick Ratio 0.8
WBD Yearly Current Assets VS Current LiabilitesWBD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 55.61% over the past year.
WBD shows a decrease in Revenue. In the last year, the revenue decreased by -5.87%.
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 a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.44% yearly.
WBD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.13% yearly.
EPS Next Y-253.1%
EPS Next 2Y36.64%
EPS Next 3Y26.21%
EPS Next 5Y21.44%
Revenue Next Year-4.69%
Revenue Next 2Y-2.17%
Revenue Next 3Y-1.06%
Revenue Next 5Y-0.13%

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.
WBD Yearly Revenue VS EstimatesWBD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
WBD Yearly EPS VS EstimatesWBD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 -4

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3

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 RankSector Rank
PE N/A
Fwd PE N/A
WBD Price Earnings VS Forward Price EarningsWBD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50

4.2 Price Multiples

WBD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WBD is cheaper than 90.91% of the companies in the same industry.
WBD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. WBD is cheaper than 98.48% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.1
EV/EBITDA 3.04
WBD Per share dataWBD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10

4.3 Compensation for Growth

A more expensive valuation may be justified as WBD's earnings are expected to grow with 26.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.64%
EPS Next 3Y26.21%

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0

5. Dividend

5.1 Amount

No dividends for WBD!.
Industry RankSector Rank
Dividend Yield N/A

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WARNER BROS DISCOVERY INC

NASDAQ:WBD (2/20/2025, 8:00:01 PM)

After market: 11.05 +0.01 (+0.09%)

11.04

+0.15 (+1.38%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-27 2025-02-27/amc
Inst Owners63.25%
Inst Owner Change7.74%
Ins Owners1.16%
Ins Owner Change0.05%
Market Cap27.08B
Analysts71.76
Price Target12.54 (13.59%)
Short Float %3.2%
Short Ratio2.62
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/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)0.72%
PT rev (3m)17.89%
EPS NQ rev (1m)-64.8%
EPS NQ rev (3m)-61.63%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.03%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.68
P/FCF 5.1
P/OCF 4.34
P/B 0.77
P/tB N/A
EV/EBITDA 3.04
EPS(TTM)-0.87
EYN/A
EPS(NY)-0.17
Fwd EYN/A
FCF(TTM)2.16
FCFY19.6%
OCF(TTM)2.54
OCFY23.03%
SpS16.13
BVpS14.31
TBVpS-18.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.4
F-Score5
WACC6.65%
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-253.1%
EPS Next 2Y36.64%
EPS Next 3Y26.21%
EPS Next 5Y21.44%
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y57.03%
Revenue growth 5Y31.39%
Sales Q2Q%-3.57%
Revenue Next Year-4.69%
Revenue Next 2Y-2.17%
Revenue Next 3Y-1.06%
Revenue Next 5Y-0.13%
EBIT growth 1Y65.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year1356.04%
EBIT Next 3Y148.82%
EBIT Next 5Y75.31%
FCF growth 1Y227.86%
FCF growth 3Y38.14%
FCF growth 5Y20.46%
OCF growth 1Y166.35%
OCF growth 3Y39.76%
OCF growth 5Y23.75%