Warner Bros. Discovery, Inc.
Warner Bros. Discovery, Inc. Fundamental Analysis
Warner Bros. Discovery, Inc. (DISCK) shows weak financial fundamentals with a PE ratio of 146.68, profit margin of 1.28%, and ROE of 1.39%. The company generates N/A in annual revenue with weak year-over-year growth of -4.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DISCK's fundamental strength across five key dimensions:
Efficiency Score
WeakDISCK struggles to generate sufficient returns from assets.
Valuation Score
ModerateDISCK shows balanced valuation metrics.
Growth Score
WeakDISCK faces weak or negative growth trends.
Financial Health Score
ExcellentDISCK maintains a strong and stable balance sheet.
Profitability Score
WeakDISCK struggles to sustain strong margins.
Key Financial Metrics
Is DISCK Expensive or Cheap?
P/E Ratio
DISCK trades at 146.68 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DISCK's PEG of -3.91 indicates potential undervaluation.
Price to Book
The market values Warner Bros. Discovery, Inc. at 1.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.12 times EBITDA. This is generally considered low.
How Well Does DISCK Make Money?
Net Profit Margin
For every $100 in sales, Warner Bros. Discovery, Inc. keeps $1.28 as profit after all expenses.
Operating Margin
Core operations generate 1.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.39 in profit for every $100 of shareholder equity.
ROA
Warner Bros. Discovery, Inc. generates $0.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $1.67 in free cash annually.
FCF Yield
DISCK converts 5.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
146.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How DISCK Stacks Against Its Sector Peers
| Metric | DISCK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 146.68 | 21.66 | Worse (Expensive) |
| ROE | 1.39% | 1190.00% | Weak |
| Net Margin | 1.28% | -55754.00% (disorted) | Weak |
| Debt/Equity | 0.94 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 1.07 | 1.59 | Neutral |
| ROA | 0.48% | -202359.00% (disorted) | Weak |
DISCK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Warner Bros. Discovery, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-22.95%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-219.20%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-65.47%
Industry Style: Growth, Technology, Streaming
Declining