WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
USA - NYSE:WWW - US9780971035 - Common Stock
25.76 USD
-0.56 (-2.13%)
25.76 USD
0 (0%)
Taking everything into account, WWW scores 4 out of 10 in our fundamental rating. WWW was compared to 48 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. WWW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WWW had positive earnings in the past year.
WWW had a positive operating cash flow in the past year.
In multiple years WWW reported negative net income over the last 5 years.
WWW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of WWW (4.61%) is better than 64.58% of its industry peers.
WWW has a better Return On Equity (24.24%) than 79.17% of its industry peers.
With a Return On Invested Capital value of 8.18%, WWW perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WWW is significantly below the industry average of 12.15%.
The 3 year average ROIC (4.86%) for WWW is below the current ROIC(8.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 24.24% | ||
| ROIC | 8.18% |
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 4.58%, WWW is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
In the last couple of years the Profit Margin of WWW has declined.
The Operating Margin of WWW (6.97%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WWW has declined.
WWW's Gross Margin of 45.88% is in line compared to the rest of the industry. WWW outperforms 41.67% of its industry peers.
In the last couple of years the Gross Margin of WWW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.97% | ||
| PM (TTM) | 4.58% | ||
| GM | 45.88% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WWW is destroying value.
WWW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WWW has been reduced compared to 5 years ago.
The debt/assets ratio for WWW has been reduced compared to a year ago.
2.2 Solvency
WWW has an Altman-Z score of 2.87. 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 (2.87) which is comparable to the rest of the industry.
WWW has a debt to FCF ratio of 5.52. This is a neutral value as WWW would need 5.52 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.52, WWW perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
WWW has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
WWW has a Debt to Equity ratio of 2.03. This is amonst the worse of the industry: WWW underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.81
WACC10.06%
2.3 Liquidity
WWW has a Current Ratio of 1.24. This is a normal value and indicates that WWW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WWW (1.24) is worse than 85.42% of its industry peers.
WWW has a Quick Ratio of 1.24. This is a bad value and indicates that WWW is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WWW (0.75) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
WWW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 4233.33%, 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.
Looking at the last year, WWW shows a decrease in Revenue. The Revenue has decreased by -2.83% in the last year.
The Revenue has been decreasing by -5.05% on average over the past years.
EPS 1Y (TTM)4233.33%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%133.33%
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%11.52%
3.2 Future
The Earnings Per Share is expected to grow by 34.45% on average over the next years. This is a very strong growth
Based on estimates for the next years, WWW will show a small growth in Revenue. The Revenue will grow by 6.97% on average per year.
EPS Next Y45.84%
EPS Next 2Y33.3%
EPS Next 3Y34.45%
EPS Next 5YN/A
Revenue Next Year7.22%
Revenue Next 2Y6.89%
Revenue Next 3Y6.97%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 20.77 indicates a rather expensive valuation of WWW.
The rest of the industry has a similar Price/Earnings ratio as WWW.
When comparing the Price/Earnings ratio of WWW to the average of the S&P500 Index (27.42), we can say WWW is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.93, the valuation of WWW can be described as correct.
WWW's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, WWW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WWW is valued a bit more expensive than 64.58% of the companies in the same industry.
75.00% of the companies in the same industry are more expensive than WWW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.31 | ||
| EV/EBITDA | 16.58 |
4.3 Compensation for Growth
WWW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WWW's earnings are expected to grow with 34.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y33.3%
EPS Next 3Y34.45%
5. Dividend
5.1 Amount
WWW has a Yearly Dividend Yield of 1.52%.
WWW's Dividend Yield is a higher than the industry average which is at 3.30.
Compared to the average S&P500 Dividend Yield of 2.36, WWW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
On average, the dividend of WWW grows each year by 11.30%, which is quite nice.
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 39.57% 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.
DP39.57%
EPS Next 2Y33.3%
EPS Next 3Y34.45%
25.76
-0.56 (-2.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners110.59%
Inst Owner Change-0.22%
Ins Owners1.11%
Ins Owner Change0.72%
Market Cap2.09B
Analysts82.86
Price Target34.34 (33.31%)
Short Float %9.88%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.41
Dividend Growth(5Y)11.3%
DP39.57%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)56.74%
Min EPS beat(2)47.69%
Max EPS beat(2)65.78%
EPS beat(4)3
Avg EPS beat(4)36.55%
Min EPS beat(4)-0.37%
Max EPS beat(4)65.78%
EPS beat(8)5
Avg EPS beat(8)115.76%
EPS beat(12)7
Avg EPS beat(12)150.55%
EPS beat(16)11
Avg EPS beat(16)113.25%
Revenue beat(2)2
Avg Revenue beat(2)3.61%
Min Revenue beat(2)3.17%
Max Revenue beat(2)4.05%
Revenue beat(4)4
Avg Revenue beat(4)2.81%
Min Revenue beat(4)0.61%
Max Revenue beat(4)4.05%
Revenue beat(8)8
Avg Revenue beat(8)2.83%
Revenue beat(12)10
Avg Revenue beat(12)1.8%
Revenue beat(16)12
Avg Revenue beat(16)0.91%
PT rev (1m)0%
PT rev (3m)62.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)28.43%
EPS NY rev (1m)3.46%
EPS NY rev (3m)18.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 15.93 | ||
| P/S | 1.15 | ||
| P/FCF | 16.31 | ||
| P/OCF | 13.82 | ||
| P/B | 6.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.58 |
EPS(TTM)1.24
EY4.81%
EPS(NY)1.62
Fwd EY6.28%
FCF(TTM)1.58
FCFY6.13%
OCF(TTM)1.86
OCFY7.23%
SpS22.42
BVpS4.23
TBVpS-3.71
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 24.24% | ||
| ROCE | 10.92% | ||
| ROIC | 8.18% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 20.8% | ||
| OM | 6.97% | ||
| PM (TTM) | 4.58% | ||
| GM | 45.88% | ||
| FCFM | 7.04% |
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%
ROICexcg growth 3Y-5.91%
ROICexcg 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 Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 5.52 | ||
| Debt/EBITDA | 4.59 | ||
| Cap/Depr | 90.94% | ||
| Cap/Sales | 1.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 99.41% | ||
| Profit Quality | 153.84% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.87 |
F-Score7
WACC10.06%
ROIC/WACC0.81
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)4233.33%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%133.33%
EPS Next Y45.84%
EPS Next 2Y33.3%
EPS Next 3Y34.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.83%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%11.52%
Revenue Next Year7.22%
Revenue Next 2Y6.89%
Revenue Next 3Y6.97%
Revenue Next 5YN/A
EBIT growth 1Y609.64%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year48.91%
EBIT Next 3Y28.32%
EBIT Next 5YN/A
FCF growth 1Y59.78%
FCF growth 3Y32.2%
FCF growth 5Y-3.21%
OCF growth 1Y31.77%
OCF growth 3Y27.55%
OCF growth 5Y-4.15%