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. WBD has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, WBD is valued expensive at the moment.
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.
WBD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WBD has a worse Return On Assets (-10.55%) than 73.24% of its industry peers.
WBD's Return On Equity of -31.96% is on the low side compared to the rest of the industry. WBD is outperformed by 63.38% 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
WBD has a Gross Margin (41.87%) which is in line with its industry peers.
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.
The number of shares outstanding for WBD has been increased compared to 1 year ago.
Compared to 5 years ago, WBD has more shares outstanding
Compared to 1 year ago, WBD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that WBD is in the distress zone and has some risk of bankruptcy.
WBD has a Altman-Z score (0.38) which is in line with its industry peers.
WBD has a debt to FCF ratio of 7.58. This is a slightly negative value and a sign of low solvency as WBD would need 7.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.58, WBD is in the better half of the industry, outperforming 69.01% of the companies in the same industry.
A Debt/Equity ratio of 1.06 is on the high side and indicates that WBD has dependencies on debt financing.
WBD has a worse Debt to Equity ratio (1.06) than 69.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.58 | ||
| Altman-Z | 0.38 |
ROIC/WACCN/A
WACC5.59%
2.3 Liquidity
A Current Ratio of 0.80 indicates that WBD may have some problems paying 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.
The Quick ratio of WBD (0.80) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 |
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
The Earnings Per Share is expected to grow by 21.87% on average over the next years. This is a very strong growth
Based on estimates for the next years, WBD will show a small growth in Revenue. The Revenue will grow by 1.43% on average per year.
EPS Next Y-258.72%
EPS Next 2Y38.3%
EPS Next 3Y27.05%
EPS Next 5Y21.87%
Revenue Next Year-3.7%
Revenue Next 2Y-1.25%
Revenue Next 3Y-0.41%
Revenue Next 5Y1.43%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Enterprise Value to EBITDA ratio, WBD is valued cheaper than 84.51% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WBD indicates a rather cheap valuation: WBD is cheaper than 97.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.76 | ||
| EV/EBITDA | 2.91 |
4.3 Compensation for Growth
A more expensive valuation may be justified as WBD's earnings are expected to grow with 27.05% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.3%
EPS Next 3Y27.05%
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 (11/21/2024, 3:12:05 PM)
10.29
+0.34 (+3.42%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.55% | ||
| ROE | -31.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)55.61%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-258.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y57.03%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y