NYSE:WWW

Stock Analysis Report

Executive Summary

Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories.

Rewards

Trading at 35.7% below its fair value

Earnings are forecast to grow 12.65% per year

Earnings grew by 65.3% over the past year

Pays a reliable dividend of 1.18%

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

How has Wolverine World Wide's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WWW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

WWW

2.7%

US Luxury

2.0%

US Market


1 Year Return

2.6%

WWW

22.3%

US Luxury

23.6%

US Market

Return vs Industry: WWW underperformed the US Luxury industry which returned 28% over the past year.

Return vs Market: WWW underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

WWWIndustryMarket
7 Day2.8%2.7%2.0%
30 Day-0.4%1.7%3.9%
90 Day18.0%9.3%12.0%
1 Year3.9%2.6%24.8%22.3%26.2%23.6%
3 Year51.4%46.8%75.4%67.6%53.2%43.3%
5 Year27.8%21.2%59.5%48.9%75.7%56.3%

Price Volatility Vs. Market

How volatile is Wolverine World Wide's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wolverine World Wide undervalued compared to its fair value and its price relative to the market?

35.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WWW ($33.83) is trading below our estimate of fair value ($52.58)

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


Price To Earnings Ratio

PE vs Industry: WWW is good value based on its PE Ratio (18.4x) compared to the Luxury industry average (18.8x).

PE vs Market: WWW is good value based on its PE Ratio (18.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: WWW is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: WWW is overvalued based on its PB Ratio (3.5x) compared to the US Luxury industry average (1.3x).


Next Steps

Future Growth

How is Wolverine World Wide forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWW's forecast earnings growth (12.6% per year) is above the savings rate (1.7%).

Earnings vs Market: WWW's earnings (12.6% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: WWW's revenue (3.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: WWW's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WWW's Return on Equity is forecast to be high in 3 years time (20.9%)


Next Steps

Past Performance

How has Wolverine World Wide performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWW has high quality earnings.

Growing Profit Margin: WWW's current net profit margins (7.2%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: WWW's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: WWW's earnings growth over the past year (65.3%) exceeds its 5-year average (2.9% per year).

Earnings vs Industry: WWW earnings growth over the past year (65.3%) exceeded the Luxury industry 15%.


Return on Equity

High ROE: Whilst WWW's Return on Equity (21.25%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wolverine World Wide's financial position?


Financial Position Analysis

Short Term Liabilities: WWW's short term assets ($948.6M) exceed its short term liabilities ($833.9M).

Long Term Liabilities: WWW's short term assets ($948.6M) exceed its long term liabilities ($840.7M).


Debt to Equity History and Analysis

Debt Level: WWW's debt to equity ratio (117.6%) is considered high.

Reducing Debt: WWW's debt to equity ratio has increased from 110.2% to 117.6% over the past 5 years.

Debt Coverage: WWW's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: WWW's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet

Inventory Level: WWW has a high level of physical assets or inventory.

Debt Coverage by Assets: WWW's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Wolverine World Wide's current dividend yield, its reliability and sustainability?

1.17%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: WWW's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: WWW's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: WWW's dividends per share have been stable in the past 10 years.

Growing Dividend: WWW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.6%), WWW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WWW's dividends in 3 years are forecast to be well covered by earnings (15.9% payout ratio).


Next Steps

Management

What is the CEO of Wolverine World Wide's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Blake Krueger (65yo)

12.8yrs

Tenure

US$8,869,982

Compensation

Mr. Blake W. Krueger has been the Chief Executive Officer and President of Wolverine World Wide, Inc. at Stride Rite Children's Group, LLC since January 01, 2010 and has been its Chief Executive Officer an ...


CEO Compensation Analysis

Compensation vs Market: Blake's total compensation ($USD8.87M) is above average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Blake's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

52yo

Average Age

Experienced Management: WWW's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

11.0yrs

Average Tenure

63.5yo

Average Age

Experienced Board: WWW's board of directors are seasoned and experienced ( 11 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$279,20004 Jun 19
Jeffrey Boromisa
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$27.92
SellUS$1,373,11326 Feb 19
Michael Jeppesen
EntityIndividual
Role
Senior Key Executive
President of Global Operations Group
Shares38,441
Max PriceUS$35.72
SellUS$267,00026 Feb 19
Amy Klimek
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Global Human Resources
Shares7,500
Max PriceUS$35.60

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Blake Krueger (65yo)

    Chairman of the Board

    • Tenure: 12.8yrs
    • Compensation: US$8.87m
  • Jim Zwiers (51yo)

    Executive Vice President

    • Tenure: 2.9yrs
    • Compensation: US$1.97m
  • Mike Jeppesen (59yo)

    President of Global Operations Group

    • Compensation: US$1.99m
  • Kyle Hanson (54yo)

    Senior VP

    • Tenure: 1.6yrs
  • Onder Ors

    Managing Director of Europe Middle East and Africa Operations

    • Tenure: 9yrs
  • Mike Stornant (52yo)

    Senior VP

    • Tenure: 4.6yrs
    • Compensation: US$2.60m
  • Mike Harris

    Vice President of Corporate Finance

    • Chris Hufnagel (47yo)

      Global Brand President of Merrell

      • Tenure: 0.3yrs
    • Amy Klimek (45yo)

      Senior Vice President of Global Human Resources

      • Tenure: 3.7yrs
    • Angelo Ng

      Chief Merchant Officer

      • Tenure: 0.3yrs

    Board Members

    • Michael Volkema (63yo)

      Independent Director

      • Tenure: 14.1yrs
      • Compensation: US$242.00k
    • William Gerber (66yo)

      Independent Director

      • Tenure: 11.9yrs
      • Compensation: US$247.00k
    • Jeff Boromisa (64yo)

      Independent Director

      • Tenure: 13.5yrs
      • Compensation: US$227.00k
    • Blake Krueger (65yo)

      Chairman of the Board

      • Tenure: 12.8yrs
      • Compensation: US$8.87m
    • David Kollat (80yo)

      Lead Director

      • Tenure: 13yrs
      • Compensation: US$295.02k
    • Brenda Lauderback (68yo)

      Independent Director

      • Tenure: 16.2yrs
      • Compensation: US$227.00k
    • Gina Boswell (56yo)

      Independent Director

      • Tenure: 6.1yrs
      • Compensation: US$224.00k
    • Tom Long (60yo)

      Independent Director

      • Tenure: 8.5yrs
      • Compensation: US$231.50k
    • David McCreight (56yo)

      Independent Director

      • Tenure: 0.7yrs
    • Roxane Divol (47yo)

      Independent Director

      • Tenure: 5.3yrs
      • Compensation: US$227.00k

    Company Information

    Wolverine World Wide, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Wolverine World Wide, Inc.
    • Ticker: WWW
    • Exchange: NYSE
    • Founded: 1883
    • Industry: Footwear
    • Sector: Consumer Durables
    • Market Cap: US$2.762b
    • Shares outstanding: 80.88m
    • Website: https://www.wolverineworldwide.com

    Number of Employees


    Location

    • Wolverine World Wide, Inc.
    • 9341 Courtland Drive NE
    • Rockford
    • Michigan
    • 49351
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    WWWNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968

    Biography

    Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories. The company operates through three segments: Wolverine Outdoor & Lifestyle Group, Wolverine Boston Group, and Wolverine Heritage Group. It offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; kids' footwear; industrial work boots and apparel; and uniform shoes and boots. The company sources and markets a range of footwear styles, such as shoes, boots, and sandals under the Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, HyTest, Keds, Merrell, Saucony, Sebago, Sperry, Wolverine, and Stride Rite brand names. It also markets apparel and accessories under the Merrell and Wolverine brands, as well as licenses its brands for use on non-footwear products, including the Hush Puppies apparel, eyewear, watches, socks, handbags, and plush toys; the Wolverine brand eyewear and gloves; and the Keds, Saucony, and Sperry brand apparel. In addition, the company markets pigskin leather under the Wolverine Warrior Leather, Weather Tight, and All Season Weather Leathers trademarks for use in the footwear industry. Further, it operates brick and mortar retail stores, and e-commerce sites. Wolverine World Wide, Inc. sells its products in the United States, Canada, the United Kingdom, and countries in continental Europe and the Asia Pacific to department stores, national chains, catalog and specialty retailers, independent retailers, uniform outlets, and mass merchant and government customers through retail stores, as well as through third-party licensees and distributors. As of December 29, 2018, the company operated 80 retail stores, as well as 42 consumer direct e-commerce sites. Wolverine World Wide, Inc. was founded in 1883 and is based in Rockford, Michigan. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 23:44
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/28
    Annual Earnings2018/12/29


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.