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 7 out of 10 to WWE. WWE was compared to 80 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 correct valuation and a medium growth rate. This makes WWE very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year WWE was profitable.
WWE had a positive operating cash flow in the past year.
In the past 5 years WWE has always been profitable.
In the past 5 years WWE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WWE (11.22%) is better than 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.
WWE had an Average Return On Invested Capital over the past 3 years of 18.26%. This is significantly above the industry average of 9.33%.
| 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
The Profit Margin of WWE (12.64%) is better than 90.79% of its industry peers.
In the last couple of years the Profit Margin of WWE has grown nicely.
WWE has a better Operating Margin (19.58%) 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.
The number of shares outstanding for WWE has been reduced compared to 1 year ago.
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.
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.
WWE has a better Debt to FCF ratio (7.58) 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.
With a Debt to Equity ratio value of 0.43, WWE perfoms like the industry average, 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
A Current Ratio of 3.78 indicates that WWE has no problem at all paying 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.
A Quick Ratio of 3.76 indicates that WWE has no problem at all paying 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%.
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.
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.
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
Based on the Price/Earnings ratio of 39.01, the valuation of WWE can be described as expensive.
76.32% of the companies in the same industry are more expensive than WWE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.31. WWE is valued slightly more expensive when compared to this.
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 67.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WWE to the average of the S&P500 Index (36.59), we can say WWE is valued inline with the index average.
| 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
With a yearly dividend of 0.48%, WWE is not a good candidate for dividend investing.
WWE's Dividend Yield is rather good when compared to the industry average which is at 37.57. WWE pays more dividend than 86.84% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, 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%
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.