World Wrestling Entertainment, Inc.
World Wrestling Entertainment, Inc. Fundamental Analysis
World Wrestling Entertainment, Inc. (WWE) shows moderate financial fundamentals with a PE ratio of 45.37, profit margin of 15.15%, and ROE of 43.54%. The company generates $1.2B 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 60.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WWE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWWE demonstrates superior asset utilization.
Valuation Score
ModerateWWE shows balanced valuation metrics.
Growth Score
ModerateWWE shows steady but slowing expansion.
Financial Health Score
ModerateWWE shows balanced financial health with some risks.
Profitability Score
ExcellentWWE achieves industry-leading margins.
Key Financial Metrics
Is WWE Expensive or Cheap?
P/E Ratio
WWE trades at 45.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WWE's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values World Wrestling Entertainment, Inc. at 17.16 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.94 times EBITDA. This signals the market has high growth expectations.
How Well Does WWE Make Money?
Net Profit Margin
For every $100 in sales, World Wrestling Entertainment, Inc. keeps $15.15 as profit after all expenses.
Operating Margin
Core operations generate 21.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $43.54 in profit for every $100 of shareholder equity.
ROA
World Wrestling Entertainment, Inc. generates $14.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
World Wrestling Entertainment, Inc. generates strong operating cash flow of $307.13M, reflecting robust business health.
Free Cash Flow
World Wrestling Entertainment, Inc. produces free cash flow of $118.57M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.43 in free cash annually.
FCF Yield
WWE converts 1.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
45.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.44
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How WWE Stacks Against Its Sector Peers
| Metric | WWE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 45.37 | 21.66 | Worse (Expensive) |
| ROE | 43.54% | 1190.00% | Weak |
| Net Margin | 15.15% | -55754.00% (disorted) | Strong |
| Debt/Equity | 1.22 | 1.32 | Neutral |
| Current Ratio | 1.45 | 1.59 | Neutral |
| ROA | 14.43% | -202359.00% (disorted) | Strong |
WWE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews World Wrestling Entertainment, 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, Technology, Streaming
EPS CAGR
N/A
Industry Style: Growth, Technology, Streaming
FCF CAGR
N/A
Industry Style: Growth, Technology, Streaming