World Wrestling Entertainment (WWE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WWE - US98156Q1085 - Common Stock
100.65 USD
+2.6 (+2.65%)
100.65 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WWE. WWE was compared to 80 industry peers in the Entertainment industry. WWE is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WWE is not valued too expensively and it also shows a decent growth rate.
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.
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.
- With an excellent Return On Invested Capital value of 15.06%, WWE belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for WWE is significantly above the industry average of 8.70%.
| 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.
- With an excellent Operating Margin value of 19.58%, WWE belongs to the best of the industry, outperforming 90.79% of the companies in the same industry.
- In the last couple of years the Operating Margin of WWE has grown nicely.
| 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
- 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.
- WWE has a better debt/assets ratio than last year.
2.2 Solvency
- WWE has an Altman-Z score of 10.45. This indicates that WWE is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of WWE (10.45) is better than 98.68% of its industry peers.
- 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.
- The Debt to FCF ratio of WWE (7.58) is better than 77.63% of its industry peers.
- WWE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of WWE (0.43) is comparable to the rest of the 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.
- Looking at the Current ratio, with a value of 3.78, WWE belongs to the top 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.
- WWE has a Quick ratio of 3.76. This is amongst the best in the industry. WWE outperforms 81.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.78 | ||
| Quick Ratio | 3.76 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.00% over the past year.
- Measured over the past years, WWE shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.48% on average per year.
- Looking at the last year, WWE shows a quite strong growth in Revenue. The Revenue has grown by 8.97% in the last year.
- WWE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.03% yearly.
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
- WWE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.93% yearly.
- 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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- 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
- WWE is valuated quite expensively with a Price/Earnings ratio of 39.01.
- 76.32% of the companies in the same industry are more expensive than WWE, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, WWE is valued a bit more expensive.
- A Price/Forward Earnings ratio of 31.63 indicates a quite expensive valuation of WWE.
- 67.11% of the companies in the same industry are more expensive than WWE, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. WWE is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 31.63 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WWE.
- WWE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WWE is cheaper than 71.05% of the companies 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 an expensive valuation of the company.
- WWE has a very decent profitability rating, which 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%
5. Dividend
5.1 Amount
- WWE has a yearly dividend return of 0.48%, which is pretty low.
- WWE's Dividend Yield is rather good when compared to the industry average which is at 7.66. WWE pays more dividend than 86.84% of the companies in the same industry.
- With a Dividend Yield of 0.48, WWE pays less dividend than the S&P500 average, which is at 1.85.
| Industry Rank | Sector 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 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%
100.65
+2.6 (+2.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)08-02 2023-08-02/bmo
Earnings (Next)10-31 2023-10-31/amc
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%.