WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
USA - NYSE:WWW - US9780971035 - Common Stock
15.92 USD
+0.3 (+1.92%)
15.92 USD
0 (0%)
Taking everything into account, WWW scores 5 out of 10 in our fundamental rating. WWW was compared to 48 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.
In the past year WWW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WWW reported negative net income in multiple 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 68.75% of the companies in the same industry.
WWW has a better Return On Equity (24.24%) than 77.08% of its industry peers.
WWW has a better Return On Invested Capital (8.18%) than 60.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WWW is significantly below the industry average of 12.15%.
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
WWW has a Profit Margin of 4.58%. This is in the better half of the industry: WWW outperforms 68.75% of its industry peers.
In the last couple of years the Profit Margin of WWW has declined.
WWW's Operating Margin of 6.97% is in line compared to the rest of the industry. WWW outperforms 56.25% of its industry peers.
WWW's Operating Margin has declined in the last couple of years.
WWW's Gross Margin of 45.88% is in line compared to the rest of the industry. WWW outperforms 41.67% of its industry peers.
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.
WWW has more shares outstanding than it did 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 2.55. 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.
The Altman-Z score of WWW (2.55) is comparable to the rest of the industry.
WWW has a debt to FCF ratio of 5.52. This is a neutral value as WWW would need 5.52 years to pay back of all of its debts.
WWW has a Debt to FCF ratio (5.52) which is in line with its industry peers.
A Debt/Equity ratio of 2.03 is on the high side and indicates that WWW has dependencies on debt financing.
With a Debt to Equity ratio value of 2.03, WWW is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 5.52 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.77
WACC10.62%
2.3 Liquidity
A Current Ratio of 1.24 indicates that WWW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, WWW is doing worse than 85.42% of the companies in the same industry.
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.
With a Quick ratio value of 0.75, WWW is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| 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 584.21%, which is quite impressive.
The earnings per share for WWW have been decreasing by -16.78% on average. This is quite bad
Looking at the last year, WWW shows a very negative growth in Revenue. The Revenue has decreased by -21.75% 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)-21.75%
Revenue growth 3Y-10.09%
Revenue growth 5Y-5.05%
Sales Q2Q%6.84%
3.2 Future
Based on estimates for the next years, WWW will show a very strong growth in Earnings Per Share. The EPS will grow by 33.48% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
WWW is valuated correctly with a Price/Earnings ratio of 12.25.
Based on the Price/Earnings ratio, WWW is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of WWW to the average of the S&P500 Index (25.83), we can say WWW is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.70, the valuation of WWW can be described as very reasonable.
81.25% of the companies in the same industry are more expensive than WWW, based on the Price/Forward Earnings ratio.
WWW is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 9.7 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WWW indicates a rather cheap valuation: WWW is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 11.33 |
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 33.48% 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%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of WWW has falen by -41.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.39, WWW pays a bit more dividend than its industry peers.
WWW's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| 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 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
39.57% 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.
DP39.57%
EPS Next 2Y34.29%
EPS Next 3Y33.48%
15.92
+0.3 (+1.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners110.59%
Inst Owner Change0.34%
Ins Owners1.11%
Ins Owner Change-0.78%
Market Cap1.29B
Revenue(TTM)1.75B
Net Income(TTM)83.40M
Analysts82.86
Price Target34.34 (115.7%)
Short Float %9.52%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)0%
PT rev (3m)35.27%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)22.82%
EPS NY rev (1m)1.22%
EPS NY rev (3m)19.6%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 9.7 | ||
| P/S | 0.71 | ||
| P/FCF | 10.08 | ||
| P/OCF | 8.54 | ||
| P/B | 3.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.33 |
EPS(TTM)1.3
EY8.17%
EPS(NY)1.64
Fwd EY10.31%
FCF(TTM)1.58
FCFY9.92%
OCF(TTM)1.86
OCFY11.7%
SpS22.42
BVpS4.23
TBVpS-3.71
PEG (NY)0.26
PEG (5Y)N/A
Graham Number11.13
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%
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 Turnover1.01
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 | 2.55 |
F-Score7
WACC10.62%
ROIC/WACC0.77
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)-21.75%
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 1Y609.64%
EBIT growth 3Y-13.21%
EBIT growth 5Y-9.85%
EBIT Next Year48.91%
EBIT Next 3Y28.32%
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%
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 8 / 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 12.25 and the Price/Book (PB) ratio is 3.76.
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 39.57%.