World Wrestling Entertainment (WWE) Fundamental Analysis & Valuation

NYSE:WWE • US98156Q1085

100.65 USD
+2.6 (+2.65%)
At close: Sep 11, 2023
100.65 USD
0 (0%)
After Hours: 9/11/2023, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This WWE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Overall WWE gets a fundamental rating of 6 out of 10. We evaluated WWE against 80 industry peers in the Entertainment industry. WWE has an excellent financial health rating, but there are some minor concerns on its profitability. WWE is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. WWE Profitability Analysis

1.1 Basic Checks

  • In the past year WWE was profitable.
  • In the past year WWE had a positive cash flow from operations.
WWE Yearly Net Income VS EBIT VS OCF VS FCFWWE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

1.2 Ratios

  • With an excellent Return On Assets value of 11.22%, WWE belongs to the best of the industry, outperforming 96.05% of the companies in the same industry.
  • The Return On Equity of WWE (18.60%) is better than 94.74% of its industry peers.
  • The Return On Invested Capital of WWE (15.06%) is better than 94.74% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WWE is significantly above the industry average of 7.13%.
Industry RankSector Rank
ROA 11.22%
ROE 18.6%
ROIC 15.06%
ROA(3y)13.11%
ROA(5y)12.26%
ROE(3y)39.69%
ROE(5y)35.71%
ROIC(3y)18.26%
ROIC(5y)16.38%
WWE Yearly ROA, ROE, ROICWWE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.64%, WWE belongs to the top of the industry, outperforming 90.79% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WWE has grown nicely.
  • The Operating Margin of WWE (19.58%) is better than 90.79% of its industry peers.
  • In the last couple of years the Operating Margin of WWE has grown nicely.
Industry RankSector Rank
OM 19.58%
PM (TTM) 12.64%
GM N/A
OM growth 3Y21.29%
OM growth 5Y18.38%
PM growth 3Y23.56%
PM growth 5Y30.06%
GM growth 3YN/A
GM growth 5YN/A
WWE Yearly Profit, Operating, Gross MarginsWWE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. WWE Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WWE is creating value.
  • WWE has less shares outstanding than it did 1 year ago.
  • The debt/assets ratio for WWE has been reduced compared to a year ago.
WWE Yearly Shares OutstandingWWE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M
WWE Yearly Total Debt VS Total AssetsWWE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B

2.2 Solvency

  • An Altman-Z score of 10.45 indicates that WWE is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 10.45, WWE belongs to the best of the industry, outperforming 98.68% of the companies in the same industry.
  • WWE has a debt to FCF ratio of 7.58. This is a slightly negative value and a sign of low solvency as WWE would need 7.58 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 7.58, WWE is doing good in the industry, outperforming 77.63% of the companies in the same industry.
  • WWE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
  • WWE has a Debt to Equity ratio (0.43) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 7.58
Altman-Z 10.45
ROIC/WACC1.69
WACC8.9%
WWE Yearly LT Debt VS Equity VS FCFWWE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M

2.3 Liquidity

  • WWE has a Current Ratio of 3.78. This indicates that WWE is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of WWE (3.78) is better than 81.58% of its industry peers.
  • WWE has a Quick Ratio of 3.76. This indicates that WWE is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 3.76, WWE belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.78
Quick Ratio 3.76
WWE Yearly Current Assets VS Current LiabilitesWWE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. WWE Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 0.00% over the past year.
  • The Earnings Per Share has been growing by 32.48% on average over the past years. This is a very strong growth
  • Looking at the last year, WWE shows a quite strong growth in Revenue. The Revenue has grown by 8.97% in the last year.
  • Measured over the past years, WWE shows a quite strong growth in Revenue. The Revenue has been growing by 10.03% on average per year.
EPS 1Y (TTM)0%
EPS 3Y44.42%
EPS 5Y32.48%
EPS Q2Q%54.24%
Revenue 1Y (TTM)8.97%
Revenue growth 3Y10.38%
Revenue growth 5Y10.03%
Sales Q2Q%25.06%

3.2 Future

  • Based on estimates for the next years, WWE will show a very strong growth in Earnings Per Share. The EPS will grow by 25.93% on average per year.
  • The Revenue is expected to grow by 7.73% on average over the next years.
EPS Next Y1.85%
EPS Next 2Y12.15%
EPS Next 3Y20.76%
EPS Next 5Y25.93%
Revenue Next Year4.64%
Revenue Next 2Y6.34%
Revenue Next 3Y9.6%
Revenue Next 5Y7.73%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WWE Yearly Revenue VS EstimatesWWE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
WWE Yearly EPS VS EstimatesWWE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

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Find the best growth stocksShow best growing peers

4

4. WWE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 39.01, which means the current valuation is very expensive for WWE.
  • WWE's Price/Earnings ratio is a bit cheaper when compared to the industry. WWE is cheaper than 76.32% of the companies in the same industry.
  • WWE is valuated rather expensively when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 31.63 indicates a quite expensive valuation of WWE.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WWE indicates a somewhat cheap valuation: WWE is cheaper than 67.11% of the companies listed in the same industry.
  • WWE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.95.
Industry RankSector Rank
PE 39.01
Fwd PE 31.63
WWE Price Earnings VS Forward Price EarningsWWE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • WWE's Enterprise Value to EBITDA is on the same level as the industry average.
  • 71.05% of the companies in the same industry are more expensive than WWE, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 158.69
EV/EBITDA 23.18
WWE Per share dataWWE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of WWE may justify a higher PE ratio.
  • A more expensive valuation may be justified as WWE's earnings are expected to grow with 20.76% in the coming years.
PEG (NY)21.04
PEG (5Y)1.2
EPS Next 2Y12.15%
EPS Next 3Y20.76%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. WWE Dividend Analysis

5.1 Amount

  • WWE has a yearly dividend return of 0.48%, which is pretty low.
  • Compared to an average industry Dividend Yield of 7.44, WWE pays a better dividend. On top of this WWE pays more dividend than 86.84% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, WWE's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.48%

5.2 History

  • The dividend of WWE decreases each year by -0.11%.
  • WWE has been paying a dividend for at least 10 years, so it has a reliable track record.
  • WWE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.11%
Div Incr Years0
Div Non Decr Years10
WWE Yearly Dividends per shareWWE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 0.1 0.2 0.3 0.4

5.3 Sustainability

  • WWE pays out 21.61% of its income as dividend. This is a sustainable payout ratio.
DP21.61%
EPS Next 2Y12.15%
EPS Next 3Y20.76%
WWE Yearly Income VS Free CF VS DividendWWE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M 250M
WWE Dividend Payout.WWE Dividend Payout, showing the Payout Ratio.WWE Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

WWE Fundamentals: All Metrics, Ratios and Statistics

World Wrestling Entertainment

NYSE:WWE (9/11/2023, 8:04:00 PM)

After market: 100.65 0 (0%)

100.65

+2.6 (+2.65%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)08-02
Earnings (Next)10-31
Inst Owners0%
Inst Owner Change0%
Ins Owners0.73%
Ins Owner Change0%
Market Cap8.37B
Revenue(TTM)1.34B
Net Income(TTM)169.13M
Analysts78.57
Price Target115.83 (15.08%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.48%
Yearly Dividend0.48
Dividend Growth(5Y)-0.11%
DP21.61%
Div Incr Years0
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.71%
Min EPS beat(2)-1.42%
Max EPS beat(2)16.85%
EPS beat(4)2
Avg EPS beat(4)7.99%
Min EPS beat(4)-11.69%
Max EPS beat(4)28.23%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.47%
Min Revenue beat(2)1.08%
Max Revenue beat(2)1.86%
Revenue beat(4)3
Avg Revenue beat(4)1.54%
Min Revenue beat(4)-3.79%
Max Revenue beat(4)7.01%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.2%
PT rev (3m)0.99%
EPS NQ rev (1m)2.96%
EPS NQ rev (3m)-6.65%
EPS NY rev (1m)0.53%
EPS NY rev (3m)-6.76%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.48%
Valuation
Industry RankSector Rank
PE 39.01
Fwd PE 31.63
P/S 6.26
P/FCF 158.69
P/OCF 31.84
P/B 9.21
P/tB 9.32
EV/EBITDA 23.18
EPS(TTM)2.58
EY2.56%
EPS(NY)3.18
Fwd EY3.16%
FCF(TTM)0.63
FCFY0.63%
OCF(TTM)3.16
OCFY3.14%
SpS16.09
BVpS10.93
TBVpS10.8
PEG (NY)21.04
PEG (5Y)1.2
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 11.22%
ROE 18.6%
ROCE 20%
ROIC 15.06%
ROICexc 25.04%
ROICexgc 25.39%
OM 19.58%
PM (TTM) 12.64%
GM N/A
FCFM 3.94%
ROA(3y)13.11%
ROA(5y)12.26%
ROE(3y)39.69%
ROE(5y)35.71%
ROIC(3y)18.26%
ROIC(5y)16.38%
ROICexc(3y)35.61%
ROICexc(5y)34.79%
ROICexgc(3y)36.7%
ROICexgc(5y)37.05%
ROCE(3y)30.05%
ROCE(5y)28.36%
ROICexgc growth 3Y28.39%
ROICexgc growth 5Y-2.71%
ROICexc growth 3Y28.79%
ROICexc growth 5Y0.36%
OM growth 3Y21.29%
OM growth 5Y18.38%
PM growth 3Y23.56%
PM growth 5Y30.06%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.89
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 7.58
Debt/EBITDA 1.12
Cap/Depr 248.26%
Cap/Sales 15.7%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 31.19%
Current Ratio 3.78
Quick Ratio 3.76
Altman-Z 10.45
F-Score5
WACC8.9%
ROIC/WACC1.69
Cap/Depr(3y)96.97%
Cap/Depr(5y)82.14%
Cap/Sales(3y)7.3%
Cap/Sales(5y)6.51%
Profit Quality(3y)122.33%
Profit Quality(5y)118.05%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y44.42%
EPS 5Y32.48%
EPS Q2Q%54.24%
EPS Next Y1.85%
EPS Next 2Y12.15%
EPS Next 3Y20.76%
EPS Next 5Y25.93%
Revenue 1Y (TTM)8.97%
Revenue growth 3Y10.38%
Revenue growth 5Y10.03%
Sales Q2Q%25.06%
Revenue Next Year4.64%
Revenue Next 2Y6.34%
Revenue Next 3Y9.6%
Revenue Next 5Y7.73%
EBIT growth 1Y-14.68%
EBIT growth 3Y33.88%
EBIT growth 5Y30.25%
EBIT Next Year35.87%
EBIT Next 3Y26.93%
EBIT Next 5Y18.62%
FCF growth 1Y-77.46%
FCF growth 3Y33.71%
FCF growth 5Y11.83%
OCF growth 1Y1.63%
OCF growth 3Y38.83%
OCF growth 5Y27.51%

World Wrestling Entertainment / WWE FAQ

What is the fundamental rating for WWE stock?

ChartMill assigns a fundamental rating of 7 / 10 to WWE.


Can you provide the valuation status for World Wrestling Entertainment?

ChartMill assigns a valuation rating of 4 / 10 to World Wrestling Entertainment (WWE). This can be considered as Fairly Valued.


How profitable is World Wrestling Entertainment (WWE) stock?

World Wrestling Entertainment (WWE) has a profitability rating of 8 / 10.


What is the valuation of World Wrestling Entertainment based on its PE and PB ratios?

The Price/Earnings (PE) ratio for World Wrestling Entertainment (WWE) is 39.01 and the Price/Book (PB) ratio is 9.21.


Can you provide the dividend sustainability for WWE stock?

The dividend rating of World Wrestling Entertainment (WWE) is 5 / 10 and the dividend payout ratio is 21.61%.