Weibo (WBAG:WBO) - Share price, News & Analysis

WBO fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

WBO Stock Overview

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover content in the People’s Republic of China.

Rewards

Trading at 32.1% below our estimate of its fair value

Earnings are forecast to grow 11.95% per year

Earnings grew by 36.7% over the past year

Risk Analysis

Highly volatile share price over the past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year

Weibo Competitors

Tencent Holdings

SEHK:700

HK$3.3t

Meituan

SEHK:3690

HK$970.6b

NetEase

NasdaqGS:NTES

US$54.8b

Baidu

NasdaqGS:BIDU

US$40.3b

Price History & Performance

Summary of all time highs, changes and price drops for Weibo
Historical stock prices
Current Share Price	US$20.10
52 Week High	US$53.20
52 Week Low	US$17.75
Beta	0.88
1 Month Change	-12.61%
3 Month Change	-26.64%
1 Year Change	-49.24%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-50.25%

Shareholder Returns

	WBO	AT Interactive Media and Services	AT Market
7D	-8.6%	0%	0%
1Y	-49.2%	0%	0%

Return vs Industry: WBO underperformed the Austrian Interactive Media and Services industry which returned -39.6% over the past year.

Return vs Market: WBO underperformed the Austrian Market which returned -1.4% over the past year.

Price Volatility

Is WBO's price volatile compared to industry and market?
WBO volatility
WBO Average Weekly Movement	10.0%
Interactive Media and Services Industry Average Movement	0%
Market Average Movement	0%
10% most volatile stocks in AT Market	0%
10% least volatile stocks in AT Market	0%

Stable Share Price: WBO is more volatile than 90% of Austrian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: WBO's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Austrian stocks.

About the Company

Founded	Employees	CEO	Website
2009	6,147	Gaofei Wang	https://weibo.com

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover content in the People’s Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform.

Weibo Fundamentals Summary

How do Weibo's earnings and revenue compare to its market cap?
WBO fundamental statistics
Market Cap	US$4.92b
Earnings (TTM)	US$428.32m
Revenue (TTM)	US$2.26b

11.5x

P/E Ratio

2.2x

P/S Ratio

Is WBO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WBO income statement (TTM)
Revenue	US$2.26b
Cost of Revenue	US$403.84m
Gross Profit	US$1.85b
Other Expenses	US$1.42b
Earnings	US$428.32m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.81
Gross Margin	82.11%
Net Profit Margin	18.98%
Debt/Equity Ratio	66.0%

How did WBO perform over the long term?

See historical performance and comparison

Valuation

Is Weibo undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

32.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WBO (€20.1) is trading below our estimate of fair value (€29.62)

Significantly Below Fair Value: WBO is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: WBO is good value based on its PE Ratio (11.5x) compared to the European Interactive Media and Services industry average (33.5x).

PE vs Market: WBO is good value based on its PE Ratio (11.5x) compared to the Austrian market (12.8x).

Price to Earnings Growth Ratio

PEG Ratio: WBO is good value based on its PEG Ratio (1x)

Price to Book Ratio

PB vs Industry: WBO is good value based on its PB Ratio (1.4x) compared to the XE Interactive Media and Services industry average (2.2x).

Future Growth

How is Weibo forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WBO's forecast earnings growth (11.9% per year) is above the savings rate (0.2%).

Earnings vs Market: WBO's earnings (11.9% per year) are forecast to grow faster than the Austrian market (6.1% per year).

High Growth Earnings: WBO's earnings are forecast to grow, but not significantly.

Revenue vs Market: WBO's revenue (6.1% per year) is forecast to grow faster than the Austrian market (1.7% per year).

High Growth Revenue: WBO's revenue (6.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: WBO's Return on Equity is forecast to be low in 3 years time (13.3%).

Past Performance

How has Weibo performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WBO has a large one-off loss of $176.3M impacting its December 31 2021 financial results.

Growing Profit Margin: WBO's current net profit margins (19%) are higher than last year (18.5%).

Past Earnings Growth Analysis

Earnings Trend: WBO's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: WBO's earnings growth over the past year (36.7%) exceeds its 5-year average (5.8% per year).

Earnings vs Industry: WBO earnings growth over the past year (36.7%) exceeded the Interactive Media and Services industry 36.5%.

Return on Equity

High ROE: WBO's Return on Equity (11.2%) is considered low.

Financial Health

How is Weibo's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: WBO's short term assets ($4.8B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: WBO's short term assets ($4.8B) exceed its long term liabilities ($1.7B).

Debt to Equity History and Analysis

Debt Level: WBO has more cash than its total debt.

Reducing Debt: Insufficient data to determine if WBO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: WBO's debt is well covered by operating cash flow (33.4%).

Interest Coverage: WBO earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Weibo current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate WBO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WBO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WBO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WBO's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WBO has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure

CEO

Gaofei Wang (42 yo)

8.25yrs

Tenure

Mr. Gaofei Wang is Independent Director at Beijing Xiaoju Science & Technology Co, Ltd. since August 2020. Mr. Wang is Director at Didi Global Inc since June 29, 2021.He has been the Chief Executive Offic...

Leadership Team

Experienced Management: WBO's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.

Board Members

Experienced Board: WBO's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/08 00:00
End of Day Share Price	2022/05/06 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31