WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
USA - NYSE:WWW - US9780971035 - Common Stock
30.4 USD
+0.22 (+0.73%)
30.4 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WWW. WWW was compared to 49 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of WWW while its profitability can be described as average. WWW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WWW was profitable.
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
Looking at the Return On Assets, with a value of 4.61%, WWW is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
WWW has a Return On Equity of 24.24%. This is in the better half of the industry: WWW outperforms 79.59% of its industry peers.
With a Return On Invested Capital value of 8.18%, WWW perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
WWW had an Average Return On Invested Capital over the past 3 years of 4.86%. This is significantly below the industry average of 12.08%.
The last Return On Invested Capital (8.18%) for WWW is above the 3 year average (4.86%), which is a sign of increasing profitability.
| 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
The Profit Margin of WWW (4.58%) is better than 63.27% of its industry peers.
WWW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.97%, WWW is in line with its industry, outperforming 48.98% of the companies in the same industry.
WWW's Operating Margin has declined in the last couple of years.
The Gross Margin of WWW (45.88%) is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WWW 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 3.03. This indicates that WWW is financially healthy and has little risk of bankruptcy at the moment.
WWW's Altman-Z score of 3.03 is in line compared to the rest of the industry. WWW outperforms 53.06% of its industry peers.
The Debt to FCF ratio of WWW is 5.52, which is a neutral value as it means it would take WWW, 5.52 years of fcf income to pay off all of its debts.
WWW has a Debt to FCF ratio of 5.52. This is comparable to the rest of the industry: WWW outperforms 53.06% of its industry peers.
WWW has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
WWW has a worse Debt to Equity ratio (2.03) than 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.81
WACC10.15%
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.
WWW has a worse Current ratio (1.24) than 83.67% 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.
WWW's Quick ratio of 0.75 is on the low side compared to the rest of the industry. WWW is outperformed by 77.55% 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.
Measured over the past years, WWW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -16.78% on average per year.
WWW shows a decrease in Revenue. In the last year, the revenue decreased by -2.83%.
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 33.15% 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 Y40.96%
EPS Next 2Y31.37%
EPS Next 3Y33.15%
EPS Next 5YN/A
Revenue Next Year7.22%
Revenue Next 2Y6.89%
Revenue Next 3Y6.97%
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
Based on the Price/Earnings ratio of 24.52, the valuation of WWW can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WWW is on the same level as its industry peers.
WWW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.36 indicates a rather expensive valuation of WWW.
WWW's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of WWW to the average of the S&P500 Index (22.71), we can say WWW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WWW is valued a bit more expensive than the industry average as 69.39% of the companies are valued more cheaply.
73.47% 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 | 19.25 | ||
| EV/EBITDA | 19.06 |
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 33.15% in the coming years.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y31.37%
EPS Next 3Y33.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, WWW has a reasonable but not impressive dividend return.
WWW's Dividend Yield is a higher than the industry average which is at 3.07.
With a Dividend Yield of 1.25, WWW pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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 39.57% of its income as dividend. This is a sustainable payout ratio.
WWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.57%
EPS Next 2Y31.37%
EPS Next 3Y33.15%
30.4
+0.22 (+0.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners107.79%
Inst Owner Change3.3%
Ins Owners1.11%
Ins Owner Change0.72%
Market Cap2.47B
Analysts82.86
Price Target34.34 (12.96%)
Short Float %10.35%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)35.27%
PT rev (3m)62.03%
EPS NQ rev (1m)5.25%
EPS NQ rev (3m)31.67%
EPS NY rev (1m)14.21%
EPS NY rev (3m)16.94%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)2.06%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 19.36 | ||
| P/S | 1.36 | ||
| P/FCF | 19.25 | ||
| P/OCF | 16.31 | ||
| P/B | 7.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.06 |
EPS(TTM)1.24
EY4.08%
EPS(NY)1.57
Fwd EY5.17%
FCF(TTM)1.58
FCFY5.19%
OCF(TTM)1.86
OCFY6.13%
SpS22.42
BVpS4.23
TBVpS-3.71
PEG (NY)0.6
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 | 3.03 |
F-Score7
WACC10.15%
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 Y40.96%
EPS Next 2Y31.37%
EPS Next 3Y33.15%
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 Year36.78%
EBIT Next 3Y27.21%
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%