Wolverine World Wide, Inc.
Wolverine World Wide, Inc. Fundamental Analysis
Wolverine World Wide, Inc. (WWW) shows moderate financial fundamentals with a PE ratio of 17.12, profit margin of 4.73%, and ROE of 26.18%. The company generates $1.9B in annual revenue with weak year-over-year growth of -21.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WWW's fundamental strength across five key dimensions:
Efficiency Score
WeakWWW struggles to generate sufficient returns from assets.
Valuation Score
ModerateWWW shows balanced valuation metrics.
Growth Score
WeakWWW faces weak or negative growth trends.
Financial Health Score
ModerateWWW shows balanced financial health with some risks.
Profitability Score
ModerateWWW maintains healthy but balanced margins.
Key Financial Metrics
Is WWW Expensive or Cheap?
P/E Ratio
WWW trades at 17.12 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WWW's PEG of 8.82 indicates potential overvaluation.
Price to Book
The market values Wolverine World Wide, Inc. at 3.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.06 times EBITDA. This is generally considered low.
How Well Does WWW Make Money?
Net Profit Margin
For every $100 in sales, Wolverine World Wide, Inc. keeps $4.73 as profit after all expenses.
Operating Margin
Core operations generate 7.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.18 in profit for every $100 of shareholder equity.
ROA
Wolverine World Wide, Inc. generates $5.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wolverine World Wide, Inc. generates limited operating cash flow of $76.45M, signaling weaker underlying cash strength.
Free Cash Flow
Wolverine World Wide, Inc. generates weak or negative free cash flow of $54.48M, restricting financial flexibility.
FCF Per Share
Each share generates $0.66 in free cash annually.
FCF Yield
WWW converts 3.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How WWW Stacks Against Its Sector Peers
| Metric | WWW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.12 | 25.25 | Better (Cheaper) |
| ROE | 26.18% | 1170.00% | Weak |
| Net Margin | 4.73% | 742.00% | Weak |
| Debt/Equity | 2.18 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.34 | 9.19 | Neutral |
| ROA | 5.13% | -6467.00% (disorted) | Weak |
WWW outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wolverine World Wide, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-17.89%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-60.35%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-13.93%
Industry Style: Cyclical, Growth, Discretionary
Declining