WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WWW - US9780971035 - Common Stock
19.03 USD
+0.45 (+2.42%)
19.12 USD
+0.09 (+0.47%)
WWW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 45 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 decent growth rate and is not valued too expensively.
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
WWW's Return On Assets of 4.98% is fine compared to the rest of the industry. WWW outperforms 71.11% of its industry peers.
WWW has a better Return On Equity (22.56%) than 82.22% of its industry peers.
With a decent Return On Invested Capital value of 8.97%, WWW is doing good in the industry, outperforming 68.89% 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 11.62%.
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 68.89% 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 7.55%, WWW is in the better half of the industry, outperforming 71.11% of the companies in the same industry.
WWW's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 46.43%, WWW is in line with its industry, outperforming 44.44% of the companies in the same industry.
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
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.
Compared to 1 year ago, WWW has an improved debt to assets ratio.
2.2 Solvency
WWW has an Altman-Z score of 2.90. 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 of 2.90. This is comparable to the rest of the industry: WWW outperforms 60.00% of 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 has a Debt to FCF ratio (12.46) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.80 is on the high side and indicates that WWW has dependencies on debt financing.
With a Debt to Equity ratio value of 1.80, WWW is not doing good in the industry: 84.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 12.46 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.8
WACC11.18%
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 84.44% 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's Quick ratio of 0.79 is on the low side compared to the rest of the industry. WWW is outperformed by 80.00% 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.
Looking at the last year, WWW shows a small growth in Revenue. The Revenue has grown by 3.61% in the last year.
The Revenue has been decreasing by -5.05% on average over the past years.
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 23.71% yearly.
The Revenue is expected to grow by 5.91% on average over the next years.
EPS Next Y47.52%
EPS Next 2Y25.72%
EPS Next 3Y23.71%
EPS Next 5YN/A
Revenue Next Year7.05%
Revenue Next 2Y6.23%
Revenue Next 3Y5.91%
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 14.64 indicates a correct valuation of WWW.
Based on the Price/Earnings ratio, WWW is valued a bit cheaper than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, WWW is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.23 indicates a correct valuation of WWW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WWW indicates a somewhat cheap valuation: WWW is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WWW to the average of the S&P500 Index (23.88), we can say WWW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 13.23 |
4.2 Price Multiples
WWW's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WWW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.73 | ||
| EV/EBITDA | 11.6 |
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.
The decent profitability rating of WWW may justify a higher PE ratio.
A more expensive valuation may be justified as WWW's earnings are expected to grow with 23.71% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y25.72%
EPS Next 3Y23.71%
5. Dividend
5.1 Amount
WWW has a Yearly Dividend Yield of 2.22%.
The stock price of WWW dropped by -22.77% 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.
Compared to an average industry Dividend Yield of 1.47, WWW pays a bit more dividend than its industry peers.
WWW's Dividend Yield is comparable with the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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.
WWW has decreased its dividend recently.
Dividend Growth(5Y)11.3%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
38.94% of the earnings are spent on dividend by WWW. This is a low number and sustainable payout ratio.
The dividend of WWW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.94%
EPS Next 2Y25.72%
EPS Next 3Y23.71%
19.03
+0.45 (+2.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners112.35%
Inst Owner Change0%
Ins Owners1.12%
Ins Owner Change0.42%
Market Cap1.56B
Revenue(TTM)1.85B
Net Income(TTM)85.00M
Analysts81.43
Price Target24.82 (30.43%)
Short Float %7.64%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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)0%
PT rev (3m)-27.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)0%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 13.23 | ||
| P/S | 0.84 | ||
| P/FCF | 28.73 | ||
| P/OCF | 20.47 | ||
| P/B | 4.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.6 |
EPS(TTM)1.3
EY6.83%
EPS(NY)1.44
Fwd EY7.56%
FCF(TTM)0.66
FCFY3.48%
OCF(TTM)0.93
OCFY4.88%
SpS22.59
BVpS4.6
TBVpS-3.22
PEG (NY)0.31
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 | 2.9 |
F-Score7
WACC11.18%
ROIC/WACC0.8
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 Y47.52%
EPS Next 2Y25.72%
EPS Next 3Y23.71%
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 Year7.05%
Revenue Next 2Y6.23%
Revenue Next 3Y5.91%
Revenue Next 5YN/A
EBIT growth 1Y1847.5%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year56.5%
EBIT Next 3Y18.18%
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 of WOLVERINE WORLD WIDE INC (WWW) stock?
ChartMill assigns a valuation rating of 6 / 10 to WOLVERINE WORLD WIDE INC (WWW). This can be considered as Fairly Valued.
What is the profitability of WWW stock?
WOLVERINE WORLD WIDE INC (WWW) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for WWW stock?
The Price/Earnings (PE) ratio for WOLVERINE WORLD WIDE INC (WWW) is 14.64 and the Price/Book (PB) ratio is 4.14.
How financially healthy is WOLVERINE WORLD WIDE INC?
The financial health rating of WOLVERINE WORLD WIDE INC (WWW) is 3 / 10.