WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WWW - US9780971035 - Common Stock
17.27 USD
-0.19 (-1.09%)
17.35 USD
+0.08 (+0.46%)
WWW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 industry peers in the Textiles, Apparel & Luxury Goods industry. While WWW is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on WWW.
1. Profitability
1.1 Basic Checks
WWW had positive earnings in the past year.
In the past year WWW had a positive cash flow from operations.
In multiple years WWW reported negative net income over the last 5 years.
Of the past 5 years WWW 4 years had a positive operating cash flow.
1.2 Ratios
WWW has a better Return On Assets (4.98%) than 69.57% of its industry peers.
The Return On Equity of WWW (22.56%) is better than 78.26% of its industry peers.
WWW has a Return On Invested Capital of 8.97%. This is in the better half of the industry: WWW outperforms 63.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WWW is significantly below the industry average of 11.99%.
The last Return On Invested Capital (8.97%) for WWW is above the 3 year average (4.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 22.56% | ||
| ROIC | 8.97% |
ROA(3y)-2.24%
ROA(5y)-2.11%
ROE(3y)-19.36%
ROE(5y)-14.37%
ROIC(3y)4.86%
ROIC(5y)5.01%
1.3 Margins
Looking at the Profit Margin, with a value of 4.59%, WWW is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
WWW's Profit Margin has declined in the last couple of years.
WWW has a better Operating Margin (7.55%) than 65.22% of its industry peers.
In the last couple of years the Operating Margin of WWW has declined.
WWW has a Gross Margin of 46.43%. This is comparable to the rest of the industry: WWW outperforms 43.48% of its industry peers.
In the last couple of years the Gross Margin of WWW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.55% | ||
| PM (TTM) | 4.59% | ||
| GM | 46.43% |
OM growth 3Y-3.46%
OM growth 5Y-5.06%
PM growth 3Y-1.91%
PM growth 5Y-13.78%
GM growth 3Y1.45%
GM growth 5Y1.85%
2. Health
2.1 Basic Checks
WWW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for WWW has been increased compared to 1 year ago.
Compared to 5 years ago, WWW has less shares outstanding
Compared to 1 year ago, WWW has an improved debt to assets ratio.
2.2 Solvency
WWW has an Altman-Z score of 2.86. This is not the best score and indicates that WWW is in the grey zone with still only limited risk for bankruptcy at the moment.
WWW has a Altman-Z score (2.86) which is in line with its industry peers.
WWW has a debt to FCF ratio of 12.46. This is a negative value and a sign of low solvency as WWW would need 12.46 years to pay back of all of its debts.
WWW's Debt to FCF ratio of 12.46 is in line compared to the rest of the industry. WWW outperforms 43.48% of its industry peers.
WWW has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.80, WWW is doing worse than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 12.46 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.83
WACC10.84%
2.3 Liquidity
WWW has a Current Ratio of 1.34. This is a normal value and indicates that WWW is financially healthy and should not expect problems in meeting its short term obligations.
WWW's Current ratio of 1.34 is on the low side compared to the rest of the industry. WWW is outperformed by 82.61% of its industry peers.
WWW has a Quick Ratio of 1.34. This is a bad value and indicates that WWW is not financially healthy enough and could expect problems in meeting its short term obligations.
WWW has a worse Quick ratio (0.79) than 76.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
WWW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 584.21%, which is quite impressive.
WWW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -16.78% yearly.
WWW shows a small growth in Revenue. In the last year, the Revenue has grown by 3.61%.
WWW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.05% yearly.
EPS 1Y (TTM)584.21%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%20.69%
Revenue 1Y (TTM)3.61%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%6.84%
3.2 Future
Based on estimates for the next years, WWW will show a very strong growth in Earnings Per Share. The EPS will grow by 33.48% on average per year.
WWW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y47.62%
EPS Next 2Y34.29%
EPS Next 3Y33.48%
EPS Next 5YN/A
Revenue Next Year7.22%
Revenue Next 2Y6.87%
Revenue Next 3Y6.57%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.28 indicates a correct valuation of WWW.
WWW's Price/Earnings ratio is a bit cheaper when compared to the industry. WWW is cheaper than 76.09% of the companies in the same industry.
When comparing the Price/Earnings ratio of WWW to the average of the S&P500 Index (26.41), we can say WWW is valued slightly cheaper.
WWW is valuated reasonably with a Price/Forward Earnings ratio of 10.52.
Based on the Price/Forward Earnings ratio, WWW is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
WWW is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 10.52 |
4.2 Price Multiples
WWW's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WWW is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.07 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as WWW's earnings are expected to grow with 33.48% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y34.29%
EPS Next 3Y33.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.61%, WWW has a reasonable but not impressive dividend return.
In the last 3 months the price of WWW has falen by -45.78%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.25, WWW pays a bit more dividend than its industry peers.
WWW's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
The dividend of WWW is nicely growing with an annual growth rate of 11.30%!
WWW has paid a dividend for at least 10 years, which is a reliable track record.
WWW has decreased its dividend recently.
Dividend Growth(5Y)11.3%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
WWW pays out 38.94% of its income as dividend. This is a sustainable payout ratio.
The dividend of WWW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.94%
EPS Next 2Y34.29%
EPS Next 3Y33.48%
17.27
-0.19 (-1.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners110.59%
Inst Owner Change1.32%
Ins Owners1.11%
Ins Owner Change0.41%
Market Cap1.42B
Revenue(TTM)1.85B
Net Income(TTM)85.00M
Analysts82.86
Price Target24.82 (43.72%)
Short Float %8.84%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.41
Dividend Growth(5Y)11.3%
DP38.94%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.41%
Min EPS beat(2)5.13%
Max EPS beat(2)47.69%
EPS beat(4)3
Avg EPS beat(4)29.56%
Min EPS beat(4)-0.37%
Max EPS beat(4)65.78%
EPS beat(8)6
Avg EPS beat(8)116.78%
EPS beat(12)8
Avg EPS beat(12)152.09%
EPS beat(16)11
Avg EPS beat(16)113.42%
Revenue beat(2)2
Avg Revenue beat(2)2.31%
Min Revenue beat(2)0.58%
Max Revenue beat(2)4.05%
Revenue beat(4)4
Avg Revenue beat(4)2.1%
Min Revenue beat(4)0.58%
Max Revenue beat(4)4.05%
Revenue beat(8)8
Avg Revenue beat(8)2.9%
Revenue beat(12)11
Avg Revenue beat(12)2.15%
Revenue beat(16)13
Avg Revenue beat(16)1.16%
PT rev (1m)-27.72%
PT rev (3m)-24.22%
EPS NQ rev (1m)-5.18%
EPS NQ rev (3m)-3.09%
EPS NY rev (1m)0.3%
EPS NY rev (3m)4.72%
Revenue NQ rev (1m)-1.63%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.28 | ||
| Fwd PE | 10.52 | ||
| P/S | 0.76 | ||
| P/FCF | 26.07 | ||
| P/OCF | 18.58 | ||
| P/B | 3.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.05 |
EPS(TTM)1.3
EY7.53%
EPS(NY)1.64
Fwd EY9.5%
FCF(TTM)0.66
FCFY3.84%
OCF(TTM)0.93
OCFY5.38%
SpS22.59
BVpS4.6
TBVpS-3.22
PEG (NY)0.28
PEG (5Y)N/A
Graham Number11.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.98% | ||
| ROE | 22.56% | ||
| ROCE | 11.92% | ||
| ROIC | 8.97% | ||
| ROICexc | 10% | ||
| ROICexgc | 22.12% | ||
| OM | 7.55% | ||
| PM (TTM) | 4.59% | ||
| GM | 46.43% | ||
| FCFM | 2.93% |
ROA(3y)-2.24%
ROA(5y)-2.11%
ROE(3y)-19.36%
ROE(5y)-14.37%
ROIC(3y)4.86%
ROIC(5y)5.01%
ROICexc(3y)5.42%
ROICexc(5y)5.66%
ROICexgc(3y)12.05%
ROICexgc(5y)14.97%
ROCE(3y)6.88%
ROCE(5y)6.81%
ROICexgc growth 3Y-5.91%
ROICexgc growth 5Y1.04%
ROICexc growth 3Y5.46%
ROICexc growth 5Y1.13%
OM growth 3Y-3.46%
OM growth 5Y-5.06%
PM growth 3Y-1.91%
PM growth 5Y-13.78%
GM growth 3Y1.45%
GM growth 5Y1.85%
F-Score7
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 12.46 | ||
| Debt/EBITDA | 4.05 | ||
| Cap/Depr | 80.81% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 45.66% | ||
| Profit Quality | 63.88% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 2.86 |
F-Score7
WACC10.84%
ROIC/WACC0.83
Cap/Depr(3y)74.73%
Cap/Depr(5y)61.72%
Cap/Sales(3y)1.05%
Cap/Sales(5y)0.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)584.21%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%20.69%
EPS Next Y47.62%
EPS Next 2Y34.29%
EPS Next 3Y33.48%
EPS Next 5YN/A
Revenue 1Y (TTM)3.61%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%6.84%
Revenue Next Year7.22%
Revenue Next 2Y6.87%
Revenue Next 3Y6.57%
Revenue Next 5YN/A
EBIT growth 1Y1847.5%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year48.91%
EBIT Next 3Y28.32%
EBIT Next 5YN/A
FCF growth 1Y-81.07%
FCF growth 3Y32.2%
FCF growth 5Y-3.21%
OCF growth 1Y-76.06%
OCF growth 3Y27.55%
OCF growth 5Y-4.15%
WOLVERINE WORLD WIDE INC / WWW FAQ
What is the fundamental rating for WWW stock?
ChartMill assigns a fundamental rating of 5 / 10 to WWW.
What is the valuation status for WWW stock?
ChartMill assigns a valuation rating of 7 / 10 to WOLVERINE WORLD WIDE INC (WWW). This can be considered as Undervalued.
What is the profitability of WWW stock?
WOLVERINE WORLD WIDE INC (WWW) has a profitability rating of 5 / 10.
What are the PE and PB ratios of WOLVERINE WORLD WIDE INC (WWW) stock?
The Price/Earnings (PE) ratio for WOLVERINE WORLD WIDE INC (WWW) is 13.28 and the Price/Book (PB) ratio is 3.76.
Is the dividend of WOLVERINE WORLD WIDE INC sustainable?
The dividend rating of WOLVERINE WORLD WIDE INC (WWW) is 5 / 10 and the dividend payout ratio is 38.94%.