WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
NYSE:WWW - New York Stock Exchange, Inc. - US9780971035 - Common Stock - Currency: USD
WWW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. WWW has a medium profitability rating, but doesn't score so well on its financial health evaluation. WWW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WWW was profitable.
WWW had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WWW reported negative net income in multiple years.
WWW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.23%, WWW perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
WWW has a better Return On Equity (22.92%) than 79.59% of its industry peers.
With a Return On Invested Capital value of 7.81%, WWW perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WWW is significantly below the industry average of 11.45%.
The 3 year average ROIC (4.86%) for WWW is below the current ROIC(7.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 22.92% | ||
| ROIC | 7.81% |
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
WWW has a Profit Margin of 4.02%. This is comparable to the rest of the industry: WWW outperforms 57.14% of its industry peers.
WWW's Profit Margin has declined in the last couple of years.
The Operating Margin of WWW (6.69%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of WWW has declined.
WWW has a worse Gross Margin (44.85%) than 61.22% of its industry peers.
WWW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.69% | ||
| PM (TTM) | 4.02% | ||
| GM | 44.85% |
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.
Compared to 1 year ago, WWW has more shares outstanding
WWW has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WWW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.80 indicates that WWW is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WWW (2.80) is comparable to the rest of the industry.
WWW has a debt to FCF ratio of 6.42. This is a slightly negative value and a sign of low solvency as WWW would need 6.42 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.42, WWW is in line with its industry, outperforming 51.02% of the companies in the same industry.
A Debt/Equity ratio of 2.26 is on the high side and indicates that WWW has dependencies on debt financing.
WWW has a worse Debt to Equity ratio (2.26) than 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 6.42 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.88
WACC8.84%
2.3 Liquidity
WWW has a Current Ratio of 1.26. This is a normal value and indicates that WWW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.26, WWW is doing worse than 83.67% of the companies in the same industry.
WWW has a Quick Ratio of 1.26. 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 Quick ratio of 0.77. This is in the lower half of the industry: WWW underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
WWW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10300.00%, 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -13.05%.
The Revenue has been decreasing by -5.05% on average over the past years.
EPS 1Y (TTM)10300%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%260%
Revenue 1Y (TTM)-13.05%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%4.41%
3.2 Future
WWW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.94% yearly.
Based on estimates for the next years, WWW will show a small growth in Revenue. The Revenue will grow by 5.47% on average per year.
EPS Next Y23.42%
EPS Next 2Y23.89%
EPS Next 3Y27.94%
EPS Next 5YN/A
Revenue Next Year4.66%
Revenue Next 2Y5.07%
Revenue Next 3Y5.47%
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 18.65 indicates a rather expensive valuation of WWW.
Compared to the rest of the industry, the Price/Earnings ratio of WWW is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.30. WWW is valued slightly cheaper when compared to this.
WWW is valuated correctly with a Price/Forward Earnings ratio of 13.89.
Based on the Price/Forward Earnings ratio, WWW is valued a bit cheaper than 65.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WWW to the average of the S&P500 Index (21.76), we can say WWW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WWW is on the same level as its industry peers.
71.43% 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 | 14.19 | ||
| EV/EBITDA | 14.49 |
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 27.94% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y23.89%
EPS Next 3Y27.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, WWW has a reasonable but not impressive dividend return.
WWW's Dividend Yield is a higher than the industry average which is at 3.62.
WWW's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
The dividend of WWW is nicely growing with an annual growth rate of 11.30%!
WWW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WWW decreased recently.
Dividend Growth(5Y)11.3%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
46.21% of the earnings are spent on dividend by WWW. This is a bit on the high side, but may be sustainable.
WWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP46.21%
EPS Next 2Y23.89%
EPS Next 3Y27.94%
19.4
-0.51 (-2.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners107.61%
Inst Owner Change0%
Ins Owners1.11%
Ins Owner Change4.73%
Market Cap1.57B
Analysts82.86
Price Target21.19 (9.23%)
Short Float %11.07%
Short Ratio6.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.41
Dividend Growth(5Y)11.3%
DP46.21%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)32.71%
Min EPS beat(2)-0.37%
Max EPS beat(2)65.78%
EPS beat(4)3
Avg EPS beat(4)30.98%
Min EPS beat(4)-0.37%
Max EPS beat(4)65.78%
EPS beat(8)4
Avg EPS beat(8)109.59%
EPS beat(12)7
Avg EPS beat(12)146.67%
EPS beat(16)11
Avg EPS beat(16)112.36%
Revenue beat(2)2
Avg Revenue beat(2)1.89%
Min Revenue beat(2)0.61%
Max Revenue beat(2)3.17%
Revenue beat(4)4
Avg Revenue beat(4)2.4%
Min Revenue beat(4)0.61%
Max Revenue beat(4)3.42%
Revenue beat(8)8
Avg Revenue beat(8)2.4%
Revenue beat(12)9
Avg Revenue beat(12)1.11%
Revenue beat(16)12
Avg Revenue beat(16)1.24%
PT rev (1m)9.36%
PT rev (3m)-9.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.78%
EPS NY rev (1m)2.39%
EPS NY rev (3m)-7.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.65 | ||
| Fwd PE | 13.89 | ||
| P/S | 0.89 | ||
| P/FCF | 14.19 | ||
| P/OCF | 11.78 | ||
| P/B | 5.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.49 |
EPS(TTM)1.04
EY5.36%
EPS(NY)1.4
Fwd EY7.2%
FCF(TTM)1.37
FCFY7.05%
OCF(TTM)1.65
OCFY8.49%
SpS21.87
BVpS3.83
TBVpS-3.99
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 22.92% | ||
| ROCE | 10.46% | ||
| ROIC | 7.81% | ||
| ROICexc | 8.53% | ||
| ROICexgc | 18.76% | ||
| OM | 6.69% | ||
| PM (TTM) | 4.02% | ||
| GM | 44.85% | ||
| FCFM | 6.25% |
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-Score6
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | 6.42 | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 90.08% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.9% | ||
| Profit Quality | 155.62% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.8 |
F-Score6
WACC8.84%
ROIC/WACC0.88
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)10300%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%260%
EPS Next Y23.42%
EPS Next 2Y23.89%
EPS Next 3Y27.94%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.05%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%4.41%
Revenue Next Year4.66%
Revenue Next 2Y5.07%
Revenue Next 3Y5.47%
Revenue Next 5YN/A
EBIT growth 1Y2533.33%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year34.61%
EBIT Next 3Y27.21%
EBIT Next 5YN/A
FCF growth 1Y150.25%
FCF growth 3Y32.2%
FCF growth 5Y-3.21%
OCF growth 1Y172.48%
OCF growth 3Y27.55%
OCF growth 5Y-4.15%