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%)
Overall WWE gets a fundamental rating of 7 out of 10. We evaluated WWE against 79 industry peers in the Entertainment industry. WWE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
In the past year WWE was profitable.
WWE had a positive operating cash flow in the past year.
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.
With an excellent Return On Equity value of 18.60%, WWE belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
WWE's Return On Invested Capital of 15.06% is amongst the best of the industry. WWE outperforms 94.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WWE is significantly above the industry average of 9.82%.
| 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.
In the last couple of years the Profit Margin of WWE has grown nicely.
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.
WWE has less shares outstanding than it did 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.
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.
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.
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
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.
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
The Earnings Per Share has been growing slightly by 0.00% over the past year.
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.
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
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
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.
WWE is valuated expensively when we compare the Price/Earnings ratio to 25.45, 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.
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.
WWE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| 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.
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 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.
Compared to an average industry Dividend Yield of 41.65, 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 2.45, 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 been paying a dividend for at least 10 years, so it has a reliable track record.
WWE has not decreased their dividend for at least 10 years, which is a reliable track record.
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.