NasdaqGS:WW

Stock Analysis Report

Weight Watchers International

Executive Summary

Weight Watchers International, Inc. provides weight management services worldwide.

Snowflake

Fundamentals

Good value with acceptable track record.

Risks

  • Weight Watchers International has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Weight Watchers International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.1%

NasdaqGS:WW

4.7%

US Consumer Services

2.9%

US Market


1 Year Return

-61.3%

NasdaqGS:WW

12.3%

US Consumer Services

0.2%

US Market

WW underperformed the Consumer Services industry which returned 9.9% over the past year.

WW underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

WWIndustryMarket
7 Day-5.1%4.7%2.9%
30 Day18.8%2.4%-2.3%
90 Day52.4%11.1%3.1%
1 Year-61.3%-61.3%16.3%12.3%2.4%0.2%
3 Year166.5%166.5%115.2%103.0%41.7%32.4%
5 Year17.5%17.5%142.5%117.6%55.1%37.9%

Price Volatility Vs. Market

How volatile is Weight Watchers International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Weight Watchers International undervalued based on future cash flows and its price relative to the stock market?

21%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Weight Watchers International's share price is below the future cash flow value, and at a moderate discount (> 20%).

Weight Watchers International's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Weight Watchers International is good value based on earnings compared to the US Consumer Services industry average.

Weight Watchers International is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Weight Watchers International is good value based on expected growth next year.


Price Based on Value of Assets

Weight Watchers International has negative assets, we can't compare the value of its assets to the US Consumer Services industry average.


Next Steps

Future Growth

How is Weight Watchers International expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Weight Watchers International's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

Weight Watchers International's earnings are expected to grow by 13.6% yearly, however this is not considered high growth (20% yearly).

Weight Watchers International's revenue growth is positive but not above the United States of America market average.

Weight Watchers International's earnings growth is positive but not above the United States of America market average.

Weight Watchers International's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Weight Watchers International will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Weight Watchers International performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Weight Watchers International has delivered over 20% year on year earnings growth in the past 5 years.

Weight Watchers International's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Weight Watchers International's 1-year earnings growth is negative, it can't be compared to the US Consumer Services industry average.


Return on Equity

It is difficult to establish if Weight Watchers International has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Weight Watchers International used its assets more efficiently than the US Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

Weight Watchers International has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Weight Watchers International's financial position?


Financial Position Analysis

Weight Watchers International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Weight Watchers International's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Weight Watchers International has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Weight Watchers International's debt level has increased considering it has negative shareholder equity.

Debt is not well covered by operating cash flow (12.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Weight Watchers International has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Weight Watchers International's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Weight Watchers International's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Weight Watchers International's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Weight Watchers International has not reported any payouts.

Unable to verify if Weight Watchers International's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Weight Watchers International has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Weight Watchers International's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Weight Watchers International's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Mindy Grossman (61yo)

2.1yrs

Tenure

US$8,798,135

Compensation

Ms. Mindy F. Grossman has been the Chief Executive Officer, President and a Director at Weight Watchers International, Inc. since July 05, 2017. Ms. Grossman was Chief Executive Officer of HSN, Inc. (“HSN” ...


CEO Compensation Analysis

Mindy's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Mindy to compare compensation growth.


Management Age and Tenure

4.1yrs

Average Tenure

54yo

Average Age

The tenure for the Weight Watchers International management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

61yo

Average Age

The tenure for the Weight Watchers International board of directors is about average.


Insider Trading

Weight Watchers International individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$116,74421 Aug 19
Corinne Pollier
EntityIndividual
Role
Unit President
President of International
Shares4,000
Max PriceUS$29.19
SellUS$289,31631 May 19
Michael Colosi
EntityIndividual
Role
Chief Legal Officer
General Counsel & Secretary
Shares16,993
Max PriceUS$17.03
SellUS$378,74310 May 19
Michael Colosi
EntityIndividual
Role
Chief Legal Officer
General Counsel & Secretary
Shares16,898
Max PriceUS$22.41
BuyUS$260,44604 Mar 19
Mindy Grossman
EntityIndividual
Role
Chief Executive Officer
President
Shares12,000
Max PriceUS$21.70
SellUS$103,48903 Dec 18
Corinne Pollier
EntityIndividual
Role
Unit President
President of International
Shares2,019
Max PriceUS$51.26
BuyUS$350,70706 Nov 18
Mindy Grossman
EntityIndividual
Role
Chief Executive Officer
President
Shares7,000
Max PriceUS$50.10
SellUS$751,63704 Sep 18
Jonas Fajgenbaum
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$75.16
SellUS$1,769,21304 Sep 18
Michael Colosi
EntityIndividual
Role
Chief Legal Officer
General Counsel & Secretary
Shares23,476
Max PriceUS$76.27
SellUS$566,89104 Sep 18
Philippe Amouyal
EntityIndividual
Shares7,500
Max PriceUS$75.59

Ownership Breakdown


Management Team

  • Mindy Grossman (61yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$8.80m
  • Bousquet Pollier (54yo)

    President of International

    • Tenure: 3.4yrs
    • Compensation: US$1.39m
  • Michael Colosi (53yo)

    General Counsel & Secretary

    • Tenure: 5.3yrs
    • Compensation: US$1.47m
  • Nicholas Hotchkin (53yo)

    CFO, President of Emerging Markets & Operating Officer of North America

    • Tenure: 7.0yrs
    • Compensation: US$2.96m
  • Corey Kinger

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Amy Kossover (57yo)

    Chief Accounting Officer

    • Tenure: 0.2yrs
  • Gary Foster

    Chief Scientific Officer

    • Tenure: 5.1yrs
  • Maurice Herrera

    Senior Vice President of Marketing

    • Tenure: 4.8yrs
  • Joe Quenqua

    Chief Communications Officer

    • Tenure: 0.2yrs
  • Rodrigo Oliveira

    Chief Technology Officer

    • Tenure: 0.0yrs

Board Members

  • Ray Debbane (64yo)

    Chairman of the Board

    • Tenure: 19.9yrs
    • Compensation: US$156.55k
  • Jonas Fajgenbaum (46yo)

    Director

    • Tenure: 19.9yrs
    • Compensation: US$150.55k
  • Denis Kelly (70yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$173.05k
  • Mindy Grossman (61yo)

    President

    • Tenure: 2.1yrs
    • Compensation: US$8.80m
  • Christopher Sobecki (60yo)

    Director

    • Tenure: 19.9yrs
    • Compensation: US$155.48k
  • Thilo Semmelbauer (53yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$155.48k
  • Arne Astrup

    Member of Scientific Advisory Board

    • Tenure: 3.9yrs
  • Steven Altschuler (66yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$166.55k
  • Susan Barr

    Member of Scientific Advisory Board

    • Tenure: 3.9yrs
  • William Dietz

    Member of Scientific Advisory Board

    • Tenure: 3.9yrs

Company Information

Weight Watchers International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Weight Watchers International, Inc.
  • Ticker: WW
  • Exchange: NasdaqGS
  • Founded: 1961
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$1.948b
  • Shares outstanding: 67.30m
  • Website: https://corporate.ww.com

Number of Employees


Location

  • Weight Watchers International, Inc.
  • 675 Avenue of the Americas
  • 6th Floor
  • New York
  • New York
  • 10010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WWNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDNov 2001
WW6DB (Deutsche Boerse AG)YesCommon SharesDEEURNov 2001
0VT8LSE (London Stock Exchange)YesCommon SharesGBUSDNov 2001
WTWWBAG (Wiener Boerse AG)YesCommon SharesATEURNov 2001

Biography

Weight Watchers International, Inc. provides weight management services worldwide. The company operates in four segments: North America, Continental Europe, United Kingdom, and Other. It provides a range o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:45
End of Day Share Price2019/08/21 00:00
Earnings2019/06/29
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.