WWW  Wolverine World Wide Inc.

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Shoe Manufacturing

Market Cap.

2.34B

Vuru Grade

75.24/100

Current Price

$23.72
+0.03 (+0.13%)

Growth Price

$28.46
Undervalued by 19.97%

Stability Price

$33.90
Undervalued by 42.91%

Company Metrics

  • P/E 23.21
  • P/S 0.93
  • P/B 2.28
  • EPS 1.02
  • Cash ROIC 9.10%
  • Cash Ratio 0.55
  • Dividend 0.24 / 1.01%
  • Avg. Vol. 995,179.00
  • Shares 98.65M
  • Market Cap. 2.34B

Company Description

Wolverine World Wide, Inc. engages in manufacturing, sourcing, marketing, licensing, and distributing footwear, apparel, and accessories to the retail sector primarily in the United States, Europe, and Canada. Its footwear product lines include casual shoes, dress shoes, boots, uniform shoes, and rugged outdoor and work footwear. It also offers casual, outdoor, and work apparel products. The marke... more


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

News

Wolverine Worldwide Announces Leadership Appointments Aimed At Driving Global ...
PR Newswire (press release) - Feb 6, 2017
ROCKFORD, Mich., Feb. 6, 2017 /PRNewswire/ -- Wolverine World Wide, Inc. (NYSE: WWW) today announced the appointment of Todd Spaletto to the position of President of the Wolverine Outdoor and Lifestyle Group and Jim Zwiers to the position of ...
Wolverine hires The North Face exec, promotes company veteran to lead ... - MiBiz
Wolverine World Wide Inc. (WWW) Plunges 7.82% on February 03
Equities.com - Feb 3, 2017
Wolverine World Wide Inc. (WWW) had a rough trading day for Friday February 03 as shares tumbled 7.82%, or a loss of $-1.8 per share, to close at $21.23.
Wolverine World Wide, Inc. (WWW) Downgraded by KeyCorp to Overweight - Community Financial News
Wolverine World Wide (WWW) is Downgraded by KeyBanc Capital Mkts to ” Sector ... - Highland Mirror
The Wolverine World Wide, Inc. (WWW) Receives “Outperform” Rating from Wedbush
DailyQuint - Feb 18, 2017
Wedbush restated their outperform rating on shares of Wolverine World Wide, Inc. (NYSE:WWW) in a report published on Tuesday morning.
FY2017 EPS Estimates for Wolverine World Wide, Inc. Decreased by Analyst (WWW) - BNB Daily (blog)
Wolverine World Wide Inc. (WWW) Moves Higher on Volume Spike for February 07
Equities.com - Feb 7, 2017
Wolverine World Wide Inc. (WWW) traded on unusually high volume on Feb. 07, as the stock gained 5.9% to close at $22.26. On the day, Wolverine World Wide Inc. saw 2.57 million shares trade hands on 14,610 trades. Considering that the stock averages ...
Wolverine World Wide, Inc. (WWW) PT Set at $19.00 by Piper Jaffray Companies - Sports Perspectives
Wolverine World Wide, Inc. (WWW) Receives Consensus Recommendation of “Hold ... - The Cerbat Gem
Wolverine World Wide, Inc. (NYSE:WWW): Look out for Analyst's Recommendation
Post Registrar - Feb 6, 2017
Wolverine World Wide, Inc. (NYSE:WWW) fell -7.82% during previous trade. KeyBanc Capital Mkts issued rating on the stock of Wolverine World Wide, Inc. (NYSE:WWW) in a research note issued to investors on Feb-03-17, the stock received “Downgrade” ...
Analysts Set Wolverine World Wide, Inc. (WWW) Price Target at $21.63 - BNB Daily (blog)
Wolverine World Wide, Inc. (NYSE:WWW) Analyst Estimates - The Independent Republic
B. Riley Weighs in on Wolverine World Wide, Inc.'s FY2017 Earnings (WWW)
Sports Perspectives - Feb 16, 2017
Wolverine World Wide logo Wolverine World Wide, Inc. (NYSE:WWW) - Stock analysts at B. Riley dropped their FY2017 earnings estimates for Wolverine World Wide in a note issued to investors on Wednesday.
Wolverine World Wide, Inc. (NYSE:WWW) To Announce June 2016 Results - The Voice Registrar
The Wolverine World Wide, Inc. (WWW) Lowered by the Zacks Investment Research - DailyQuint
Kalmar Investments Inc Buys Wolverine World Wide Inc, Cantel Medical Corp ...
GuruFocus.com - Jan 25, 2017
Investment company Kalmar Investments Inc buys Wolverine World Wide Inc, Cantel Medical Corp., Cantel Medical Corp., INC Research Holdings Inc, GTT Communications Inc, sells W R Grace & Co, Belden Inc, LKQ Corp, Alliance Data Systems Corp, ...
Today's Brokerage Rating: Wolverine World Wide, Inc. (WWW), Newfield ...
StockNewsJournal - Feb 8, 2017
Wolverine World Wide, Inc. (WWW) have shown a high EPS growth of 2.60% in the last 5 years and has earnings decline of -7.80% yoy.
Wolverine World Wide, Inc. (WWW) Position Boosted by Keybank National ...
The Cerbat Gem - Feb 14, 2017
Wolverine World Wide logo Keybank National Association OH boosted its position in shares of Wolverine World Wide, Inc. (NYSE:WWW) by 24.5% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission ...
Stock Price of Wolverine World Wide, Inc. (WWW) Increases 12.11% - TheFounders Daily
Wolverine World Wide, Inc. (WWW) : How Do the Technicals Stack Up?
The USA Commerce - Feb 6, 2017
We have gathered the technical data on Wolverine World Wide, Inc. (WWW), and see some interesting trends in the stock's behavior of late.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for WWW 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 WWW'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.

$23.72 Current Price

$28.46 Growth Price (DCF)

Undervalued by 19.97%


Growth Rate Assumed by Market: 5.92%


Future Free Cash Flow Growth Rate: 13.1%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$33.90 Stability Price (EPV)

Undervalued by 42.91%


Discount Rate: 15.0%

$31.66 Book Price

Undervalued by 33.46%


Poor Cash Return on Invested Capital over the past 5 years

WWW has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

WWW has only created $9.10 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 59.42M 76.70M 160.60M 284.60M 169.10M
divided by
Invested Capital 562.96M 2.12B 2.08B 1.94B 1.90B
Cash ROIC 10.55% 3.61% 7.73% 14.67% 8.91%

Shrinking Return on Equity over the past 5 years

WWW has been shrinking returns with capital that shareholders have invested. This is a negative sign and demonstrates that both the business and management performance are weakening over time.

WWW has generated $14.61 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 123.29M 80.76M 101.00M 133.90M 123.20M
divided by
Stockholders' Equity 578.65M 642.39M 837.60M 933.50M 963.70M
Return on Equity 21.31% 12.57% 12.06% 14.34% 12.78%

Excellent Business Performance over the past 10 years

WWW has been able to maintain profitability in good times and bad. This could mean WWW 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.

WWW has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 91.25M 105.41M 69.34M 156.94M 51.50M 59.42M 76.70M 160.60M 284.60M 169.10M

Weak Balance Sheet

WWW's financial position is not ideal. The key is to check whether WWW 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
2006200720082009201020112012201320142015
Cash 124.66M 76.09M 89.50M 160.44M 150.40M 140.01M 171.41M 214.20M 223.80M 194.10M
Current Assets 485.31M 445.64M 473.84M 503.54M 580.13M 634.50M 1.07B 1.12B 1.04B 1.01B
Total Assets 671.09M 638.38M 664.78M 707.93M 786.58M 851.65M 2.61B 2.62B 2.50B 2.44B
Current Liabilities 120.92M 122.63M 191.33M 132.85M 141.16M 148.68M 319.33M 329.30M 340.70M 353.30M
Total Liabilities 166.53M 159.60M 234.86M 225.90M 242.68M 273.00M 1.97B 1.78B 1.57B 1.48B
Stockholder' Equity 504.56M 478.78M 429.92M 482.03M 543.90M 578.65M 642.39M 837.60M 933.50M 963.70M
Current Ratio 4.01 3.63 2.48 3.79 4.11 4.27 3.37 3.40 3.06 2.87
TL-to-TA 0.25 0.25 0.35 0.32 0.31 0.32 0.75 0.68 0.63 0.61

Consistent Reinvestment of Profits over the past 10 years

WWW has consistently retained profits. This may put WWW in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, WWW can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 519.82M 591.71M 666.03M 706.44M 789.68M 889.77M 946.77M 743.10M 852.20M 950.80M
Retained Earnings Growth - 13.83% 12.56% 6.07% 11.78% 12.67% 6.41% -21.51% 14.68% 11.57%

Competitive Industry over the past 10 years

WWW is likely operating in an industry with medium to low barriers to entry. This may mean that WWW 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 WWW invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.38 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 83.65M 92.89M 95.82M 61.91M 104.47M 123.29M 80.76M 101.00M 133.90M 123.20M
divided by
Revenue 1.14B 1.20B 1.22B 1.10B 1.25B 1.41B 1.64B 2.69B 2.76B 2.69B
Net Profit Margin 7.33% 7.75% 7.85% 5.62% 8.37% 8.75% 4.92% 3.75% 4.85% 4.58%

Varying Pricing Power over the past 10 years

WWW 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.

$45.30 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
2006200720082009201020112012201320142015
Gross Profit 441.54M 471.93M 486.02M 431.72M 492.57M 1.41B 628.16M 1.07B 1.09B 1.05B
divided by
Revenue 1.14B 1.20B 1.22B 1.10B 1.25B 1.41B 1.64B 2.69B 2.76B 2.69B
Gross Margin 38.67% 39.36% 39.82% 39.21% 39.45% 100.00% 38.28% 39.84% 39.34% 39.07%

Low Capital Intensity over the past 10 years

WWW has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that WWW may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

23.49% 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
2006200720082009201020112012201320142015
Capital Expenditure 17.07M 17.88M 24.13M 11.67M 16.37M 19.40M 14.94M 41.70M 30.00M 46.40M
divided by
Net Income 83.65M 92.89M 95.82M 61.91M 104.47M 123.29M 80.76M 101.00M 133.90M 123.20M
Capital Expenditure Ratio 20.40% 19.25% 25.18% 18.85% 15.67% 15.73% 18.50% 41.29% 22.40% 37.66%

Very Strong Dividend History over the past 10 years

WWW has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests WWW 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
2006200720082009201020112012201320142015
Dividend Paid 16.08M 18.39M 20.76M 21.50M 21.41M 22.74M 22.42M 23.70M 24.00M 24.40M
divided by
Shares Outstanding 56.90M 54.64M 50.36M 48.98M 48.86M 48.73M 97.03M 98.94M 100.06M 100.00M
Dividend Paid Per Share 0.28 0.34 0.41 0.44 0.44 0.47 0.23 0.24 0.24 0.24
Price at Year End 26.34 22.93 19.70 26.78 32.04 35.64 40.18 33.88 29.86 17.19
Dividend Yield 1.07% 1.47% 2.09% 1.64% 1.37% 1.31% 0.58% 0.71% 0.80% 1.42%

Strong History of Stock Buybacks over the past 10 years

WWW has a strong 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
2006200720082009201020112012201320142015
Shares Outstanding 56.90M 54.64M 50.36M 48.98M 48.86M 48.73M 97.03M 98.94M 100.06M 100.00M
Stock Bought Back - 4.14% 8.50% 2.81% 0.25% 0.26% -49.78% -1.93% -1.13% 0.06%
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