WWW  Wolverine World Wide Inc.

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Shoe Manufacturing

Market Cap.

2.49B

Vuru Grade

77.66/100

Current Price

$25.81
-0.35 (-1.34%)

Growth Price

$38.76
Undervalued by 50.16%

Stability Price

$12.49
Overvalued by 51.59%

Company Metrics

  • P/E 30.33
  • P/S 1
  • P/B 2.53
  • EPS 0.85
  • Cash ROIC 9.77%
  • Cash Ratio 1.11
  • Dividend 0.24 / 0.9%
  • Avg. Vol. 717,906.00
  • Shares 96.47M
  • Market Cap. 2.49B

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 Sale Of The Sebago Brand
PR Newswire (press release) - Jul 31, 2017
ROCKFORD, Mich., July 31, 2017 /PRNewswire/ -- Wolverine World Wide, Inc. (NYSE: WWW) today announced it has sold its Sebago® brand to BasicNet, S.p.A., an Italian corporation with a global footprint that has a portfolio of brands including Kappa®, ...
Analysts Expect Wolverine World Wide, Inc. (WWW) to Announce $0.40 EPS
TrueBlueTribune - 8 hours ago
Wolverine World Wide logo Analysts expect Wolverine World Wide, Inc. (NYSE:WWW) to post earnings per share of $0.40 for the current fiscal quarter, Zacks Investment Research reports.
Chartwell Investment Partners LLC Cuts Stake in Wolverine World Wide, Inc. (WWW) - Week Herald
Wolverine World Wide jumps after earnings topper
Seeking Alpha - Aug 9, 2017
"We believe the strength of our global brands combined with the continued operational discipline and implementation of the Wolverine Way Forward leaves us well positioned to achieve our near-term growth and stated operating margin goal of 12% by the ...
Wolverine Worldwide Reports Second-Quarter Results And Raises Full-Year ... - PR Newswire (press release)
Wolverine World Wide Raises Full-Year Guidance - Quick Facts - Nasdaq
The Case for and Against Wolverine World Wide, Inc. (WWW)
StockNewsJournal - Aug 14, 2017
Wolverine World Wide, Inc. (WWW) is an interesting player in the Consumer Goods space, with a focus on Textile - Apparel Footwear & Accessories.
Wolverine World Wide, Inc. (NYSE:WWW) Shares Sold by Metropolitan Life ... - BNB Daily (blog)
Merrell, Saucony Parent Blows Past Earnings Forecasts But Is Not Done With ...
Footwear News - Aug 9, 2017
Wolverine World Wide Inc. trampled over Wall Street's second-quarter predictions today producing significant top-and-bottom line beats and also upping its full-year guidance.
Wolverine's stock swings lower after downbeat outlook to analysts offsets ... - MarketWatch
Which Way Traders Signposts Extended Stay America, Inc. (STAY), Wolverine ...
StockNewsJournal - Aug 15, 2017
Wolverine World Wide, Inc. (NYSE:WWW), maintained return on investment for the last twelve months at 3.94, higher than what Reuters data shows regarding industry's average.
Wolverine World Wide Inc A Clever Put Spread
CML News - Aug 5, 2017
Selling puts is a common option strategy during a bull market, but it turns out that looking at a lower risk put spread, and being rather clever in how we treat earnings, yields powerful results in Wolverine World Wide Inc (NYSE:WWW) . More urgently ...
Right After Earnings, The Intelligent Options Trade in Wolverine World Wide Inc
CML News - Aug 15, 2017
... is identifying companies that make their large stock move the day after earnings -- whether that's up or down -- and after that, find a sense of equilibrium in the stock price for the next month.
Wolverine World Wide Q2 earnings per share $0.21
Times of India - Aug 9, 2017
Sees fy 2017 adjusted earnings per share $1.55 to $1.65. * Wolverine world wide inc - ‍company incurred about $5.3 million of operating losses in q2 for stores closed, and these losses will not reoccur next year​.
How Do Analysts See Wolverine World Wide Inc (WWW) Performing In The Year Ahead?
Simply Wall St - Jul 26, 2017
Based on the latest analyst predictions, Wolverine World Wide Inc (NYSE:WWW) is estimated to sizably grow its earnings by 13.65% next year.
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.

$25.81 Current Price

$38.76 Growth Price (DCF)

Undervalued by 50.16%


Growth Rate Assumed by Market: -0.46%


Future Free Cash Flow Growth Rate: 14.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.49 Stability Price (EPV)

Overvalued by 51.59%


Discount Rate: 15.0%

$33.23 Book Price

Undervalued by 28.76%


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 $9.77 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 76.70M 160.60M 284.60M 169.10M 241.00M
divided by
Invested Capital 2.12B 2.08B 1.94B 1.90B 1.73B
Cash ROIC 3.61% 7.73% 14.67% 8.91% 13.95%

Satisfactory Return on Equity over the past 5 years

WWW has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

WWW has generated $12.16 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 80.76M 101.00M 133.90M 123.20M 87.50M
divided by
Stockholders' Equity 642.39M 837.60M 933.50M 963.70M 966.50M
Return on Equity 12.57% 12.06% 14.34% 12.78% 9.05%

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
2007200820092010201120122013201420152016
Free Cash Flow 105.41M 69.34M 156.94M 51.50M 59.42M 76.70M 160.60M 284.60M 169.10M 241.00M

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
2007200820092010201120122013201420152016
Cash 76.09M 89.50M 160.44M 150.40M 140.01M 171.41M 214.20M 223.80M 194.10M 369.80M
Current Assets 445.64M 473.84M 503.54M 580.13M 634.50M 1.07B 1.12B 1.04B 1.01B 1.03B
Total Assets 638.38M 664.78M 707.93M 786.58M 851.65M 2.61B 2.62B 2.50B 2.44B 2.43B
Current Liabilities 122.63M 191.33M 132.85M 141.16M 148.68M 319.33M 329.30M 340.70M 353.30M 333.70M
Total Liabilities 159.60M 234.86M 225.90M 242.68M 273.00M 1.97B 1.78B 1.57B 1.48B 1.47B
Stockholder' Equity 478.78M 429.92M 482.03M 543.90M 578.65M 642.39M 837.60M 933.50M 963.70M 966.50M
Current Ratio 3.63 2.48 3.79 4.11 4.27 3.37 3.40 3.06 2.87 3.09
TL-to-TA 0.25 0.35 0.32 0.31 0.32 0.75 0.68 0.63 0.61 0.60

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
2007200820092010201120122013201420152016
Retained Earnings 591.71M 666.03M 706.44M 789.68M 889.77M 946.77M 743.10M 852.20M 950.80M 1.02B
Retained Earnings Growth - 12.56% 6.07% 11.78% 12.67% 6.41% -21.51% 14.68% 11.57% 6.76%

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 $5.99 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 92.89M 95.82M 61.91M 104.47M 123.29M 80.76M 101.00M 133.90M 123.20M 87.50M
divided by
Revenue 1.20B 1.22B 1.10B 1.25B 1.41B 1.64B 2.69B 2.76B 2.69B 2.49B
Net Profit Margin 7.75% 7.85% 5.62% 8.37% 8.75% 4.92% 3.75% 4.85% 4.58% 3.51%

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.

$45.29 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 471.93M 486.02M 431.72M 492.57M 1.41B 628.16M 1.07B 1.09B 1.05B 959.90M
divided by
Revenue 1.20B 1.22B 1.10B 1.25B 1.41B 1.64B 2.69B 2.76B 2.69B 2.49B
Gross Margin 39.36% 39.82% 39.21% 39.45% 100.00% 38.28% 39.84% 39.34% 39.07% 38.48%

Medium Capital Intensity over the past 10 years

WWW has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

27.77% 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 17.88M 24.13M 11.67M 16.37M 19.40M 14.94M 41.70M 30.00M 46.40M 55.30M
divided by
Net Income 92.89M 95.82M 61.91M 104.47M 123.29M 80.76M 101.00M 133.90M 123.20M 87.50M
Capital Expenditure Ratio 19.25% 25.18% 18.85% 15.67% 15.73% 18.50% 41.29% 22.40% 37.66% 63.20%

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
2007200820092010201120122013201420152016
Dividend Paid 18.39M 20.76M 21.50M 21.41M 22.74M 22.42M 23.70M 24.00M 24.40M 23.50M
divided by
Shares Outstanding 54.64M 50.36M 48.98M 48.86M 48.73M 97.03M 98.94M 100.06M 100.00M 96.20M
Dividend Paid Per Share 0.34 0.41 0.44 0.44 0.47 0.23 0.24 0.24 0.24 0.24
Price at Year End 22.93 19.70 26.78 32.04 35.64 40.18 33.88 29.86 17.19 21.95
Dividend Yield 1.47% 2.09% 1.64% 1.37% 1.31% 0.58% 0.71% 0.80% 1.42% 1.11%

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
2007200820092010201120122013201420152016
Shares Outstanding 54.64M 50.36M 48.98M 48.86M 48.73M 97.03M 98.94M 100.06M 100.00M 96.20M
Stock Bought Back - 8.50% 2.81% 0.25% 0.26% -49.78% -1.93% -1.13% 0.06% 3.95%
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