World Wrestling Entertainment (WWE) Stock Fundamental Analysis
USA - NYSE:WWE - US98156Q1085 - Common Stock
100.65 USD
+2.6 (+2.65%)
100.65 USD
0 (0%)
WWE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 79 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making WWE a very profitable company, without any liquidiy or solvency issues. WWE has a correct valuation and a medium growth rate. This makes WWE very considerable 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.
Each year in the past 5 years WWE had a positive operating cash flow.
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.
WWE has a better Return On Equity (18.60%) than 94.74% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for WWE is significantly above the industry average of 9.19%.
| 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
WWE has a Profit Margin of 12.64%. This is amongst the best in the industry. WWE outperforms 90.79% of its industry peers.
WWE's Profit Margin has improved in the last couple of years.
The Operating Margin of WWE (19.58%) is better than 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WWE is creating value.
Compared to 1 year ago, WWE has less shares outstanding
The debt/assets ratio for WWE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.45 indicates that WWE is not in any danger for bankruptcy at the moment.
The Altman-Z score of WWE (10.45) is better 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 has a Debt to FCF ratio of 7.58. This is in the better half of the industry: WWE outperforms 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.
WWE's Debt to Equity ratio of 0.43 is in line compared to the rest of the industry. WWE outperforms 56.58% of its industry peers.
| 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 better Quick ratio (3.76) than 81.58% of its industry peers.
| 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.
Looking at the last year, WWE shows a quite strong growth in Revenue. The Revenue has grown by 8.97% in the last year.
The Revenue has been growing by 10.03% on average over the past years. This is quite good.
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.
Based on estimates for the next years, WWE will show a small growth in Revenue. The Revenue will grow by 7.73% on average per year.
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.
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.
76.32% of the companies in the same industry are more expensive than WWE, based on the Price/Earnings ratio.
WWE is valuated expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 31.63, WWE can be considered very expensive at the moment.
WWE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WWE is cheaper than 67.11% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.68. WWE is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 31.63 |
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 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 excellent 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
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 40.43. WWE pays more dividend than 86.84% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 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
21.61% of the earnings are spent on dividend by WWE. This is a low number and 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)
Earnings (Next)
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.
What is the valuation status of World Wrestling Entertainment (WWE) stock?
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.
Can you provide the PE and PB ratios for WWE stock?
The Price/Earnings (PE) ratio for World Wrestling Entertainment (WWE) is 39.01 and the Price/Book (PB) ratio is 9.21.
How financially healthy is World Wrestling Entertainment?
The financial health rating of World Wrestling Entertainment (WWE) is 8 / 10.