WOLVERINE WORLD WIDE INC (WWW) Stock Fundamental Analysis
NYSE:WWW - New York Stock Exchange, Inc. - US9780971035 - Common Stock - Currency: USD
Overall WWW gets a fundamental rating of 3 out of 10. We evaluated WWW against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and financial health of WWW have multiple concerns. 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.
In the past 5 years WWW reported 4 times negative net income.
In multiple years WWW reported negative operating cash flow during the last 5 years.
1.2 Ratios
WWW has a Return On Assets of -3.88%. This is in the lower half of the industry: WWW underperforms 65.31% of its industry peers.
Looking at the Return On Equity, with a value of -23.71%, WWW is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.88% | ||
| ROE | -23.71% | ||
| ROIC | N/A |
ROA(3y)-2.3%
ROA(5y)-1.65%
ROE(3y)-20.8%
ROE(5y)-14.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WWW's Operating Margin has declined in the last couple of years.
WWW has a Gross Margin of 42.35%. This is in the lower half of the industry: WWW underperforms 63.27% of its industry peers.
In the last couple of years the Gross Margin of WWW has remained more or less at the same level.
WWW does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 42.35% |
OM growth 3Y-36.96%
OM growth 5Y-36.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.79%
GM growth 5Y-1.12%
2. Health
2.1 Basic Checks
WWW does not have a ROIC to compare to the WACC, probably because it is not profitable.
WWW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
WWW has an Altman-Z score of 2.26. 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.
With a Altman-Z score value of 2.26, WWW is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
WWW has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as WWW would need 3.44 years to pay back of all of its debts.
WWW's Debt to FCF ratio of 3.44 is in line compared to the rest of the industry. WWW outperforms 51.02% of its industry peers.
A Debt/Equity ratio of 2.40 is on the high side and indicates that WWW has dependencies on debt financing.
With a Debt to Equity ratio value of 2.40, WWW is not doing good in the industry: 91.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 2.26 |
ROIC/WACCN/A
WACC9.63%
2.3 Liquidity
WWW has a Current Ratio of 1.23. 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 1.23 is on the low side compared to the rest of the industry. WWW is outperformed by 87.76% of its industry peers.
A Quick Ratio of 0.77 indicates that WWW may have some problems paying its short term obligations.
The Quick ratio of WWW (0.77) is worse than 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1720.00% over the past year.
The earnings per share for WWW have been decreasing by -16.78% on average. This is quite bad
EPS 1Y (TTM)1720%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%240%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.08%
3.2 Future
The Earnings Per Share is expected to grow by 40.09% on average over the next years. This is a very strong growth
WWW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.88% yearly.
EPS Next Y48.73%
EPS Next 2Y40.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.59%
Revenue Next 2Y5.88%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.66 indicates a correct valuation of WWW.
WWW's Price/Earnings ratio is a bit cheaper when compared to the industry. WWW is cheaper than 61.22% of the companies in the same industry.
WWW is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
WWW is valuated reasonably with a Price/Forward Earnings ratio of 11.20.
Based on the Price/Forward Earnings ratio, WWW is valued cheaply inside the industry as 81.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of WWW to the average of the S&P500 Index (22.68), we can say WWW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WWW is valued a bit more expensive than the industry average as 77.55% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, WWW is valued cheaper than 89.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.94 | ||
| EV/EBITDA | 81.99 |
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 40.09% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y40.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
WWW has a Yearly Dividend Yield of 2.63%.
In the last 3 months the price of WWW has falen by -35.21%. 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 2.88, WWW pays a better dividend. On top of this WWW pays more dividend than 83.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, WWW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
The dividend of WWW is nicely growing with an annual growth rate of 11.07%!
WWW has paid a dividend for at least 10 years, which is a reliable track record.
WWW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.07%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
WWW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
WWW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-47.58%
EPS Next 2Y40.09%
EPS Next 3YN/A
15.16
-0.06 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners102.89%
Inst Owner Change9.33%
Ins Owners1.49%
Ins Owner Change4.5%
Market Cap1.21B
Analysts77.14
Price Target25.84 (70.45%)
Short Float %7.32%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend0.41
Dividend Growth(5Y)11.07%
DP-47.58%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.24%
Min EPS beat(2)25.4%
Max EPS beat(2)33.08%
EPS beat(4)3
Avg EPS beat(4)203.99%
Min EPS beat(4)-9.5%
Max EPS beat(4)766.99%
EPS beat(8)5
Avg EPS beat(8)213.36%
EPS beat(12)8
Avg EPS beat(12)141.38%
EPS beat(16)11
Avg EPS beat(16)109.52%
Revenue beat(2)2
Avg Revenue beat(2)2.9%
Min Revenue beat(2)2.39%
Max Revenue beat(2)3.42%
Revenue beat(4)4
Avg Revenue beat(4)3.7%
Min Revenue beat(4)0.52%
Max Revenue beat(4)8.48%
Revenue beat(8)7
Avg Revenue beat(8)2.17%
Revenue beat(12)9
Avg Revenue beat(12)0.85%
Revenue beat(16)11
Avg Revenue beat(16)1.26%
PT rev (1m)1.78%
PT rev (3m)39.63%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-2.17%
EPS NY rev (1m)-1.44%
EPS NY rev (3m)6.33%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.66 | ||
| Fwd PE | 11.2 | ||
| P/S | 0.68 | ||
| P/FCF | 5.94 | ||
| P/OCF | 5.71 | ||
| P/B | 4.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 81.99 |
EPS(TTM)0.91
EY6%
EPS(NY)1.35
Fwd EY8.93%
FCF(TTM)2.55
FCFY16.82%
OCF(TTM)2.65
OCFY17.51%
SpS22.32
BVpS3.6
TBVpS-4.43
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.88% | ||
| ROE | -23.71% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 42.35% | ||
| FCFM | 11.43% |
ROA(3y)-2.3%
ROA(5y)-1.65%
ROE(3y)-20.8%
ROE(5y)-14.1%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.73%
ROCE(5y)7.04%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-36.96%
OM growth 5Y-36.19%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.79%
GM growth 5Y-1.12%
F-Score4
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 34.3 | ||
| Cap/Depr | 29.43% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 1051.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.26 |
F-Score4
WACC9.63%
ROIC/WACCN/A
Cap/Depr(3y)66.7%
Cap/Depr(5y)67.34%
Cap/Sales(3y)0.91%
Cap/Sales(5y)0.97%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1720%
EPS 3Y-24.33%
EPS 5Y-16.78%
EPS Q2Q%240%
EPS Next Y48.73%
EPS Next 2Y40.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.08%
Revenue Next Year6.59%
Revenue Next 2Y5.88%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-111.31%
EBIT growth 3Y-32.05%
EBIT growth 5Y-36.17%
EBIT Next Year110.53%
EBIT Next 3Y45.49%
EBIT Next 5YN/A
FCF growth 1Y145.23%
FCF growth 3Y-28.94%
FCF growth 5Y7.18%
OCF growth 1Y150.55%
OCF growth 3Y-26.69%
OCF growth 5Y4.55%