WWE  World Wrestling Entertainment...

Exchange

NYSE

Sector

Consumer Services

Industry

Movies/Entertainment

Market Cap.

1.61B

Vuru Grade

26.50/100

Current Price

$20.90
-0.20 (-0.95%)

Growth Price

$4.82
Overvalued by 76.93%

Stability Price

$4.30
Overvalued by 79.42%

Company Metrics

  • P/E 63.72
  • P/S 2.13
  • P/B 6.66
  • EPS 0.33
  • Cash ROIC 11.58%
  • Cash Ratio 2.01
  • Dividend 0.48 / 2.27 %
  • Avg. Vol. 467,261.00
  • Shares 77.03M
  • Market Cap. 1.61B

Company Description

World Wrestling Entertainment, Inc., an integrated media and entertainment company, engages in the sports entertainment business. The company develops content centered around its talent, and presents at its live and televised events featuring World Wrestling Entertainment. It operates through four segments: Live and Televised Entertainment, Consumer Products, Digital Media, and WWE Studios. The Li... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Business Advice from World Wrestling Entertainment Inc.
Fortune - Jul 21, 2017
Good morning from San Francisco. While Aspen is amazing, it's also good to be home. And it's good to return to be at sea level.
World Wrestling Entertainment gets toehold in China with streaming deal
Fox News - Aug 10, 2017
To the WWE, the outcome looks as certain as in one of its scripted wrestling matches. A company-commissioned study two years ago concluded that China's major cities are home to more than 140 million WWE fans, only some of them watching legitimately, ...
Jim Cramer Advises His Viewers On World Wrestling Entertainment And Six Flags - Benzinga
Why Is World Wrestling Entertainment, Inc. (WWE) Stock Falling Today?
Investorplace.com - Jul 28, 2017
World Wrestling Entertainment, Inc. also released its earnings report for the second quarter of 2017 on Thursday. This included earnings per share of 6 cents on revenue of $214.60 million.
World Wrestling (WWE) Beats on Q2 Earnings & Revenues - Nasdaq
World Wrestling Entertainment Inc. Class A (WWE) Moves Lower on Volume Spike ... - Equities.com
Estimating the fair value of World Wrestling Entertainment Inc (WWE)
Simply Wall St - Aug 11, 2017
In this article I am going to calculate the intrinsic value of World Wrestling Entertainment (NYSE:WWE) using a method called discounted cash flow or DCF.
Why World Wrestling Entertainment Inc (WWE) May Not Be As Efficient As Its ...
Simply Wall St - Jul 25, 2017
World Wrestling Entertainment Inc's (NYSE:WWE) most recent return on equity was a substandard 9.10% relative to its industry performance of 19.53% over the past year.
Overview Of Different Chart Patterns: World Wrestling Entertainment, Inc. (WWE ... - AllStockNews
The Sell-Side Reaction To World Wrestling Entertainment, Inc. (WWE)'s Recent Shift - StockNewsMagazine
World Wrestling Entertainment, Inc. (WWE) and The Marcus Corporation (MCS) Go ...
StockNewsGazette - Aug 15, 2017
World Wrestling Entertainment, Inc. (NYSE:WWE) and The Marcus Corporation (NYSE:MCS) are the two most active stocks in the Entertainment - Diversified industry based on today's trading volumes.
World Wrestling Entertainment Inc (WWE) Tick -0.76% For The Week
Financial Newsweek - 17 hours ago
World Wrestling Entertainment Inc (WWE) shares are showing negative signals short-term as the stock has finished lower by -0.76% for the week.
Revenue Approximations Analysis: World Wrestling Entertainment, Inc. (WWE ...
StockNewsJournal - Jul 28, 2017
ROI deals with the invested cash in the company and the return the investor realize on that money based on the net profit of the business.
Option Trading: Buy or Sell Straddles in World Wrestling Entertainment Inc ...
CML News - Aug 15, 2017
As we look at World Wrestling Entertainment Inc we note that deciding whether to buy or sell options (in this case a straddle) is probably the most important question when it comes to option trading.
Traders Secrets on Cognizant Technology Solutions Corporation (CTSH), World ...
StockNewsJournal - Jul 31, 2017
World Wrestling Entertainment, Inc. (NYSE:WWE), at its latest closing price of $21.38, it has a price-to-book ratio of 6.75, compared to an industry average at 0.63.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for WWE to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate WWE's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$20.90 Current Price

$4.82 Growth Price (DCF)

Overvalued by 76.93%


Growth Rate Assumed by Market: 49.84%


Future Free Cash Flow Growth Rate: -7.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$4.30 Stability Price (EPV)

Overvalued by 79.42%


Discount Rate: 15.0%

$11.19 Book Price

Overvalued by 46.48%


Inconsistent Cash Return on Invested Capital over the past 5 years

WWE has somewhat efficiently invested its financial resources in buildings, projects, and equipment. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

WWE has created $11.58 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 29.16M -32.18M 42.79M 29.54M 26.72M
divided by
Invested Capital 151.44M 186.83M 166.57M 175.18M 200.63M
Cash ROIC 19.26% -17.22% 25.69% 16.87% 13.32%

Poor Return on Equity over the past 5 years

WWE has shown an inability to deliver strong results for shareholders. This could be due to poor management, WWE operating in a highly competitive industry, or having a weak business in general.

WWE has only generated $4.55 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 31.43M 2.76M -30.07M 24.14M 33.84M
divided by
Stockholders' Equity 294.73M 265.95M 205.86M 209.32M 239.74M
Return on Equity 10.66% 1.04% -14.61% 11.53% 14.12%

Excellent Business Performance over the past 10 years

WWE has been able to maintain profitability in good times and bad. This could mean WWE has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

WWE has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 80.01M 9.95M 110.88M 27.49M 35.23M 29.16M -32.18M 42.79M 29.54M 26.72M

Weak Balance Sheet

WWE's financial position is not ideal. The key is to check whether WWE is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 266.35M 177.34M 208.22M 166.95M 155.76M 152.37M 109.39M 115.41M 102.38M 267.14M
Current Assets 347.72M 280.03M 294.86M 259.07M 239.74M 234.53M 200.20M 197.22M 179.76M 349.31M
Total Assets 470.06M 429.41M 440.62M 415.73M 378.62M 381.38M 378.46M 382.55M 409.15M 600.90M
Current Liabilities 71.57M 58.33M 72.13M 72.41M 69.25M 77.57M 82.25M 100.58M 131.59M 133.13M
Total Liabilities 86.68M 69.44M 103.60M 98.98M 83.48M 86.66M 112.51M 176.69M 199.83M 361.16M
Stockholder' Equity 383.38M 359.97M 337.02M 316.75M 295.14M 294.73M 265.95M 205.86M 209.32M 239.74M
Current Ratio 4.86 4.80 4.09 3.58 3.46 3.02 2.43 1.96 1.37 2.62
TL-to-TA 0.18 0.16 0.24 0.24 0.22 0.23 0.30 0.46 0.49 0.60

Low or No Reinvestment of Profits over the past 10 years

WWE has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to WWE operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 78.44M 40.97M 7.90M -23.73M -47.28M -51.82M -85.29M -151.83M -164.10M -167.30M
Retained Earnings Growth - -47.77% -80.71% -400.28% -99.25% -9.60% -64.60% -78.02% -8.08% -1.95%

Competitive Industry over the past 10 years

WWE is likely operating in an industry with medium to low barriers to entry. This may mean that WWE doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that WWE invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.61 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 52.14M 45.42M 50.30M 53.45M 24.83M 31.43M 2.76M -30.07M 24.14M 33.84M
divided by
Revenue 485.66M 526.46M 475.16M 477.66M 483.92M 484.01M 507.97M 542.62M 658.77M 729.22M
Net Profit Margin 10.74% 8.63% 10.59% 11.19% 5.13% 6.49% 0.54% -5.54% 3.67% 4.64%

Varying Pricing Power over the past 10 years

WWE has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$45.68 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 186.89M 214.67M 219.31M 203.36M 483.92M 199.56M 184.94M 165.01M 261.45M 299.18M
divided by
Revenue 485.66M 526.46M 475.16M 477.66M 483.92M 484.01M 507.97M 542.62M 658.77M 729.22M
Gross Margin 38.48% 40.78% 46.16% 42.57% 100.00% 41.23% 36.41% 30.41% 39.69% 41.03%

High Capital Intensity over the past 10 years

WWE spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

282.43% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 18.15M 26.30M 5.53M 12.31M 27.96M 33.89M 55.93M 11.90M 20.01M 29.90M
divided by
Net Income 52.14M 45.42M 50.30M 53.45M 24.83M 31.43M 2.76M -30.07M 24.14M 33.84M
Capital Expenditure Ratio 34.82% 57.90% 10.98% 23.04% 112.58% 107.82% 2,023.52% -39.58% 82.88% 88.37%

Very Strong Dividend History over the past 10 years

WWE has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests WWE is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 68.66M 81.40M 82.27M 83.64M 47.81M 35.82M 35.98M 36.15M 36.35M 36.56M
divided by
Shares Outstanding 72.30M 73.52M 74.29M 75.31M 74.86M 74.98M 75.38M 75.29M 76.33M 77.54M
Dividend Paid Per Share 0.95 1.11 1.11 1.11 0.64 0.48 0.48 0.48 0.48 0.47
Price at Year End 10.39 8.25 13.34 13.39 9.32 7.72 16.59 12.49 18.54 18.40
Dividend Yield 9.14% 13.42% 8.30% 8.30% 6.85% 6.19% 2.88% 3.84% 2.57% 2.56%

History of Stock Buybacks over the past 10 years

WWE has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 72.30M 73.52M 74.29M 75.31M 74.86M 74.98M 75.38M 75.29M 76.33M 77.54M
Stock Bought Back - -1.66% -1.03% -1.35% 0.60% -0.16% -0.53% 0.11% -1.36% -1.56%
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