Time Warner, Inc. Fundamental Analysis
Time Warner, Inc. (TWX) shows moderate financial fundamentals with a PE ratio of 14.62, profit margin of 16.78%, and ROE of 19.91%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TWX's fundamental strength across five key dimensions:
Efficiency Score
WeakTWX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTWX trades at attractive valuation levels.
Growth Score
WeakTWX faces weak or negative growth trends.
Financial Health Score
ExcellentTWX maintains a strong and stable balance sheet.
Profitability Score
ModerateTWX maintains healthy but balanced margins.
Key Financial Metrics
Is TWX Expensive or Cheap?
P/E Ratio
TWX trades at 14.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TWX's PEG of 0.46 indicates potential undervaluation.
Price to Book
The market values Time Warner, Inc. at 2.70 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.18 times EBITDA. This is generally considered low.
How Well Does TWX Make Money?
Net Profit Margin
For every $100 in sales, Time Warner, Inc. keeps $16.78 as profit after all expenses.
Operating Margin
Core operations generate 25.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.91 in profit for every $100 of shareholder equity.
ROA
Time Warner, Inc. generates $7.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $5.70 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.70
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.84
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How TWX Stacks Against Its Sector Peers
| Metric | TWX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.62 | 36.58 | Better (Cheaper) |
| ROE | 19.91% | 985.00% | Weak |
| Net Margin | 16.78% | 5945031351.00% | Weak |
| Debt/Equity | 0.84 | 0.37 | Weak (High Leverage) |
| Current Ratio | 1.08 | 4.77 | Neutral |
| ROA | 7.58% | -297243.00% (disorted) | Weak |
TWX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Time Warner, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta