World Wrestling Entertainment (WWE)
US98156Q1085 - Common Stock
Taking everything into account, WWE scores 7 out of 10 in our fundamental rating. WWE was compared to 72 industry peers in the Entertainment industry. WWE gets an excellent profitability rating and is at the same time showing great financial health properties. WWE has a decent growth rate and is not valued too expensively. These ratings would make WWE suitable for quality investing!
1. Profitability
1.1 Basic Checks
WWE had positive earnings in the past year.
In the past year WWE had a positive cash flow from operations.
Each year in the past 5 years WWE has been profitable.
In the past 5 years WWE always reported a positive cash flow from operatings.
1.2 Ratios
WWE has a Return On Assets of 11.22%. This is amongst the best in the industry. WWE outperforms 96.05% of its industry peers.
Looking at the Return On Equity, with a value of 18.60%, WWE belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.06%, WWE belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WWE is significantly below the industry average of 88.68%.
| Industry Rank | Sector 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%
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.
WWE's Profit Margin has improved in the last couple of years.
WWE has a Operating Margin of 19.58%. This is amongst the best in the industry. WWE outperforms 90.79% of its industry peers.
WWE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
WWE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
WWE has less shares outstanding than it did 1 year ago.
WWE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WWE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.45 indicates that WWE is not in any danger for bankruptcy at the moment.
WWE has a better Altman-Z score (10.45) than 98.68% of its industry peers.
The Debt to FCF ratio of WWE is 7.58, which is on the high side as it means it would take WWE, 7.58 years of fcf income to pay off all of its debts.
WWE's Debt to FCF ratio of 7.58 is fine compared to the rest of the industry. WWE outperforms 77.63% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that WWE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, WWE is in line with its industry, outperforming 56.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 7.58 | ||
| Altman-Z | 10.45 |
ROIC/WACC1.69
WACC8.9%
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.
With an excellent Current ratio value of 3.78, WWE belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.78 | ||
| Quick Ratio | 3.76 |
3. Growth
3.1 Past
WWE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
WWE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.48% yearly.
The Revenue has grown by 8.97% in the past year. This is quite good.
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.
WWE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.73% yearly.
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.
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
The Price/Earnings ratio is 39.01, which means the current valuation is very expensive for WWE.
Based on the Price/Earnings ratio, WWE is valued a bit cheaper than 76.32% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, WWE is valued a bit more expensive.
The Price/Forward Earnings ratio is 31.63, which means the current valuation is very expensive for WWE.
Based on the Price/Forward Earnings ratio, WWE is valued a bit cheaper than the industry average as 67.11% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WWE to the average of the S&P500 Index (23.82), we can say WWE is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 31.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WWE is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WWE indicates a somewhat cheap valuation: WWE is cheaper than 71.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 158.69 | ||
| EV/EBITDA | 23.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WWE does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of WWE may justify a higher PE ratio.
WWE's earnings are expected to grow with 20.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)21.04
PEG (5Y)1.2
EPS Next 2Y12.15%
EPS Next 3Y20.76%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, WWE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.61, 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 2.23, WWE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of WWE decreases each year by -0.11%.
WWE has paid a dividend for at least 10 years, which is a reliable track record.
WWE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.11%
Div Incr Years0
Div Non Decr Years10
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%
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 SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
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Market Cap8.37B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Dividend Growth(5Y)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 31.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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PEG (NY)21.04
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 18.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.58% | ||
| PM (TTM) | 12.64% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
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ROICexcg growth 5Y
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F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.78 | ||
| Quick Ratio | 3.76 | ||
| Altman-Z |
F-Score
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Cap/Sales(3y)
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Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y44.42%
EPS 5Y
EPS Q2Q%
EPS Next Y1.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.97%
Revenue growth 3Y10.38%
Revenue growth 5Y
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