WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WWW - US9780971035 - Common Stock
18.12 USD
-0.44 (-2.37%)
18.12 USD
0 (0%)
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. While WWW is still in line with the averages on profitability rating, there are concerns on its financial health. WWW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WWW had positive earnings in the past year.
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 has a Return On Assets of 4.98%. This is in the better half of the industry: WWW outperforms 71.11% of its industry peers.
WWW's Return On Equity of 22.56% is amongst the best of the industry. WWW outperforms 82.22% of its industry peers.
WWW has a better Return On Invested Capital (8.97%) than 66.67% 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 11.80%.
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
The Profit Margin of WWW (4.59%) is better than 68.89% of its industry peers.
WWW's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.55%, WWW is doing good in the industry, outperforming 71.11% of the companies in the same industry.
In the last couple of years the Operating Margin of WWW has declined.
WWW has a Gross Margin of 46.43%. This is comparable to the rest of the industry: WWW outperforms 42.22% of its industry peers.
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.
WWW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.89 indicates that WWW is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WWW (2.89) is comparable to the rest of the industry.
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 in line with its industry peers.
WWW has a Debt/Equity ratio of 1.80. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WWW (1.80) is worse than 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.8 | ||
| Debt/FCF | 12.46 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.81
WACC11.09%
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.
With a Current ratio value of 1.34, WWW is not doing good in the industry: 84.44% of the companies in the same industry are doing better.
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: 77.78% 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
The Earnings Per Share has grown by an impressive 584.21% over the past year.
The earnings per share for WWW have been decreasing by -16.78% on average. This is quite bad
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
The Earnings Per Share is expected to grow by 23.71% 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 5.91% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.94 indicates a correct valuation of WWW.
Compared to the rest of the industry, the Price/Earnings ratio of WWW indicates a somewhat cheap valuation: WWW is cheaper than 75.56% of the companies listed in the same industry.
WWW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.56.
The Price/Forward Earnings ratio is 12.60, which indicates a correct valuation of WWW.
Based on the Price/Forward Earnings ratio, WWW is valued a bit cheaper than 80.00% of the companies in the same industry.
WWW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
WWW's Enterprise Value to EBITDA is on the same level as 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 | 27.35 | ||
| EV/EBITDA | 11.37 |
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 has a very decent profitability rating, which 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)0.29
PEG (5Y)N/A
EPS Next 2Y25.72%
EPS Next 3Y23.71%
5. Dividend
5.1 Amount
WWW has a Yearly Dividend Yield of 1.61%.
In the last 3 months the price of WWW has falen by -40.65%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WWW's Dividend Yield is a higher than the industry average which is at 1.48.
Compared to an average S&P500 Dividend Yield of 1.87, WWW has a dividend comparable with the average S&P500 company.
| 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
38.94% of the earnings are spent on dividend by WWW. This is a low number and sustainable payout ratio.
WWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.94%
EPS Next 2Y25.72%
EPS Next 3Y23.71%
18.12
-0.44 (-2.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners112.24%
Inst Owner Change1.32%
Ins Owners1.12%
Ins Owner Change0.42%
Market Cap1.49B
Revenue(TTM)1.85B
Net Income(TTM)85.00M
Analysts81.43
Price Target24.82 (36.98%)
Short Float %8.84%
Short Ratio3.4
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)-27.72%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)4.65%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 12.6 | ||
| P/S | 0.8 | ||
| P/FCF | 27.35 | ||
| P/OCF | 19.49 | ||
| P/B | 3.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.37 |
EPS(TTM)1.3
EY7.17%
EPS(NY)1.44
Fwd EY7.94%
FCF(TTM)0.66
FCFY3.66%
OCF(TTM)0.93
OCFY5.13%
SpS22.59
BVpS4.6
TBVpS-3.22
PEG (NY)0.29
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 | 2.89 |
F-Score7
WACC11.09%
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)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 for 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.
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 13.94 and the Price/Book (PB) ratio is 3.94.
Is the dividend of WOLVERINE WORLD WIDE INC sustainable?
The dividend rating of WOLVERINE WORLD WIDE INC (WWW) is 6 / 10 and the dividend payout ratio is 38.94%.