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%)
WWE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium 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
The Return On Assets of WWE (11.22%) is better than 96.05% of its industry peers.
WWE has a Return On Equity of 18.60%. This is amongst the best in the industry. WWE outperforms 94.74% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital 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
WWE has a better Profit Margin (12.64%) than 90.79% of its industry peers.
In the last couple of years the Profit Margin of WWE has grown nicely.
WWE's Operating Margin of 19.58% is amongst the best of 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WWE is creating value.
Compared to 1 year ago, WWE has less shares outstanding
Compared to 1 year ago, WWE has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 10.45, WWE belongs to the top 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.
Looking at the Debt to FCF ratio, with a value of 7.58, WWE is in the better half of 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.
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.
WWE's Current ratio of 3.78 is amongst the best of the industry. WWE outperforms 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.
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
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.
WWE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.97%.
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
The Earnings Per Share is expected to grow by 25.93% on average over the next years. This is a very strong growth
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.
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.
Based on the Price/Earnings ratio, WWE is valued a bit cheaper than 76.32% of the companies in the same industry.
When comparing the Price/Earnings ratio of WWE to the average of the S&P500 Index (27.19), we can say WWE is valued slightly more expensively.
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.
When comparing the Price/Forward Earnings ratio of WWE to the average of the S&P500 Index (23.92), we can say WWE is valued slightly more expensively.
| 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.
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 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
With a yearly dividend of 0.48%, WWE is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.69, WWE pays a better dividend. On top of this WWE pays more dividend than 86.84% of the companies listed in the same industry.
With a Dividend Yield of 0.48, WWE pays less dividend than the S&P500 average, which is at 1.92.
| 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
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.
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%.