WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WWW - US9780971035 - Common Stock
16.21 USD
-0.07 (-0.43%)
16.21 USD
0 (0%)
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. WWW has a medium profitability rating, but doesn't score so well on its financial health evaluation. WWW may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Of the past 5 years WWW 4 years had a positive operating cash flow.
1.2 Ratios
WWW has a Return On Assets of 4.98%. This is in the better half of the industry: WWW outperforms 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.
WWW had an Average Return On Invested Capital over the past 3 years of 4.86%. This is significantly below the industry average of 11.99%.
The 3 year average ROIC (4.86%) for WWW is below the current ROIC(8.97%), indicating increased profibility in the last year.
| 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
WWW's Profit Margin of 4.59% is fine compared to the rest of the industry. WWW outperforms 65.22% of its industry peers.
In the last couple of years the Profit Margin of WWW has declined.
With a decent Operating Margin value of 7.55%, WWW is doing good in the industry, outperforming 65.22% of the companies in the same industry.
In the last couple of years the Operating Margin of WWW has declined.
The Gross Margin of WWW (46.43%) is comparable to the rest of the industry.
WWW's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WWW is destroying value.
Compared to 1 year ago, WWW has more shares outstanding
The number of shares outstanding for WWW has been reduced compared to 5 years ago.
WWW has a better debt/assets ratio than last year.
2.2 Solvency
WWW has an Altman-Z score of 2.81. 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 (2.81) which is comparable to the rest of the industry.
The Debt to FCF ratio of WWW is 12.46, which is on the high side as it means it would take WWW, 12.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WWW (12.46) is comparable to the rest of the industry.
WWW has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
WWW has a worse Debt to Equity ratio (1.80) than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 12.46 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.84
WACC10.63%
2.3 Liquidity
A Current Ratio of 1.34 indicates that WWW should not have too much problems paying its short term obligations.
WWW has a worse Current ratio (1.34) than 82.61% of its industry peers.
A Quick Ratio of 0.79 indicates that WWW may have some problems paying its short term obligations.
With a Quick ratio value of 0.79, WWW is not doing good in the industry: 76.09% of the companies in the same industry are doing better.
| 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.
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.
The Revenue has been growing slightly by 3.61% in the past year.
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
WWW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.48% yearly.
The Revenue is expected to grow by 6.57% on average over the next years.
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
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
WWW is valuated correctly with a Price/Earnings ratio of 12.47.
76.09% of the companies in the same industry are more expensive than WWW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, WWW is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.88, the valuation of WWW can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WWW indicates a rather cheap valuation: WWW is cheaper than 80.43% of the companies listed in the same industry.
WWW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
WWW's Enterprise Value to EBITDA is on the same level as 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 | 24.26 | ||
| EV/EBITDA | 10.4 |
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.
A more expensive valuation may be justified as WWW's earnings are expected to grow with 33.48% in the coming years.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y34.29%
EPS Next 3Y33.48%
5. Dividend
5.1 Amount
WWW has a Yearly Dividend Yield of 1.61%.
The stock price of WWW dropped by -49.25% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
WWW's Dividend Yield is a higher than the industry average which is at 3.49.
Compared to the average S&P500 Dividend Yield of 2.40, WWW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
On average, the dividend of WWW grows each year by 11.30%, which is quite nice.
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
WWW pays out 38.94% 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.
DP38.94%
EPS Next 2Y34.29%
EPS Next 3Y33.48%
16.21
-0.07 (-0.43%)
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 Change-0.51%
Market Cap1.32B
Revenue(TTM)1.85B
Net Income(TTM)85.00M
Analysts82.86
Price Target24.82 (53.12%)
Short Float %11.16%
Short Ratio4.22
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)-3.86%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)0.3%
EPS NY rev (3m)4.72%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 9.88 | ||
| P/S | 0.71 | ||
| P/FCF | 24.26 | ||
| P/OCF | 17.28 | ||
| P/B | 3.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.4 |
EPS(TTM)1.3
EY8.02%
EPS(NY)1.64
Fwd EY10.12%
FCF(TTM)0.67
FCFY4.12%
OCF(TTM)0.94
OCFY5.79%
SpS22.79
BVpS4.64
TBVpS-3.25
PEG (NY)0.26
PEG (5Y)N/A
Graham Number11.65
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 | 2.81 |
F-Score7
WACC10.63%
ROIC/WACC0.84
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 12.47 and the Price/Book (PB) ratio is 3.5.
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%.