Snowflake Score | |
---|---|
Valuation | 6/6 |
Future Growth | 3/6 |
Past Performance | 1/6 |
Financial Health | 5/6 |
Dividends | 0/6 |
WB 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.
Weibo Competitors
Price History & Performance
Historical stock prices | |
---|---|
Current Share Price | US$23.26 |
52 Week High | US$64.70 |
52 Week Low | US$18.62 |
Beta | 0.88 |
1 Month Change | 5.73% |
3 Month Change | -8.25% |
1 Year Change | -55.52% |
3 Year Change | -47.06% |
5 Year Change | -65.96% |
Change since IPO | 14.92% |
Recent News & Updates
Weibo: Fundamentals Point To Strong Upside
Weibo is a leading social-media company in China operating one of the country’s most successful and popular communication platform. With a >500 million user base and a strong brand, Weibo appears well-positioned to capture a large share of China’s internet/communication market. Looking at Weibo’s valuation, the company’s financials appear highly underappreciated - as Weibo is profitable and the company's balance sheet healthy. I assign a BUY rating to Weibo stock and set a price target of $43.56/share.
Weibo Plays With The Big Boys In Numbers, But Investors Still Worry
Despite impressive financial results last year, China’s Twitter equivalent faces the challenge of better monetizing users in its highly regulated home market. Weibo’s revenue rose above pre-pandemic levels last year, but its profitability lagged due to heavy spending. The company trails Meta in its ability to monetize users, and is very much in the shadow of local rival WeChat in terms of total user numbers.
Shareholder Returns
WB | US Interactive Media and Services | US Market | |
---|---|---|---|
7D | 7.8% | 6.8% | 6.6% |
1Y | -55.5% | -44.8% | -18.4% |
Return vs Industry: WB underperformed the US Interactive Media and Services industry which returned -44.8% over the past year.
Return vs Market: WB underperformed the US Market which returned -18.4% over the past year.
Price Volatility
WB volatility | |
---|---|
WB Average Weekly Movement | 7.3% |
Interactive Media and Services Industry Average Movement | 11.3% |
Market Average Movement | 8.1% |
10% most volatile stocks in US Market | 16.6% |
10% least volatile stocks in US Market | 3.2% |
Stable Share Price: WB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: WB's weekly volatility (7%) has been stable over the past year.
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
WB fundamental statistics | |
---|---|
Market Cap | US$5.50b |
Earnings (TTM) | US$310.98m |
Revenue (TTM) | US$2.28b |
17.7x
P/E Ratio2.4x
P/S RatioIs WB overvalued?
See Fair Value and valuation analysisEarnings & Revenue
WB income statement (TTM) | |
---|---|
Revenue | US$2.28b |
Cost of Revenue | US$428.87m |
Gross Profit | US$1.85b |
Other Expenses | US$1.54b |
Earnings | US$310.98m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
Earnings per share (EPS) | 1.31 |
Gross Margin | 81.21% |
Net Profit Margin | 13.62% |
Debt/Equity Ratio | 66.6% |
How did WB perform over the long term?
See historical performance and comparisonValuation
Is WB undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
6/6Valuation Score 6/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for WB?
Other financial metrics that can be useful for relative valuation.
What is WB's n/a Ratio? | |
---|---|
n/a Ratio | 0x |
n/a | n/a |
Market Cap | US$5.50b |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 2.1x |
Enterprise Value/EBITDA | 6.3x |
PEG Ratio | 0.8x |
Price to Earnings Ratio vs Peers
How does WB's PE Ratio compare to its peers?
WB PE Ratio vs Peers |
---|
Company | PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 1267.3x | ||
BMBL Bumble | 4835.4x | 48.8% | US$6.5b |
IAC IAC/InterActiveCorp | 207.8x | 72.5% | US$7.5b |
ATHM Autohome | 16.5x | 7.5% | US$4.4b |
ZD Ziff Davis | 9.4x | -2.8% | US$3.6b |
WB Weibo | 18.1x | 22.7% | US$5.6b |
Price-To-Earnings vs Peers: WB is good value based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (1301.2x).
Price to Earnings Ratio vs Industry
How does WB's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?
Price-To-Earnings vs Industry: WB is good value based on its Price-To-Earnings Ratio (18.1x) compared to the US Interactive Media and Services industry average (45.5x)
Price to Earnings Ratio vs Fair Ratio
What is WB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
Fair Ratio | |
---|---|
Current PE Ratio | 17.7x |
Fair PE Ratio | 27.1x |
Price-To-Earnings vs Fair Ratio: WB is good value based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (27.1x).
Share Price vs Fair Value
What is the Fair Price of WB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: WB ($23.82) is trading below our estimate of fair value ($30.9)
Significantly Below Fair Value: WB is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: WB is good value based on its PEG Ratio (0.8x)
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Future Growth
How is Weibo forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
22.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WB's forecast earnings growth (22.7% per year) is above the savings rate (1.9%).
Earnings vs Market: WB's earnings (22.7% per year) are forecast to grow faster than the US market (13.9% per year).
High Growth Earnings: WB's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: WB's revenue (7.9% per year) is forecast to grow slower than the US market (8.4% per year).
High Growth Revenue: WB's revenue (7.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WB's Return on Equity is forecast to be low in 3 years time (12.9%).
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Past Performance
How has Weibo performed over the past 5 years?
Past Performance Score
1/6Past Performance Score 1/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
0.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WB has a large one-off loss of $296.1M impacting its March 31 2022 financial results.
Growing Profit Margin: WB's current net profit margins (13.6%) are lower than last year (17%).
Past Earnings Growth Analysis
Earnings Trend: WB's earnings have grown by 0.6% per year over the past 5 years.
Accelerating Growth: WB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: WB had negative earnings growth (-0.03%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-37.6%).
Return on Equity
High ROE: WB's Return on Equity (7.9%) is considered low.
Discover strong past performing companies
Financial Health
How is Weibo's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: WB's short term assets ($4.9B) exceed its short term liabilities ($2.1B).
Long Term Liabilities: WB's short term assets ($4.9B) exceed its long term liabilities ($1.7B).
Debt to Equity History and Analysis
Debt Level: WB has more cash than its total debt.
Reducing Debt: WB's debt to equity ratio has increased from 0.08% to 66.6% over the past 5 years.
Debt Coverage: WB's debt is well covered by operating cash flow (33.4%).
Interest Coverage: WB earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is Weibo current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend 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 WB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate WB'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 WB's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if WB'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 WB has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Gaofei Wang (42 yo)
8.33yrs
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: WB's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: WB'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%.
Top Shareholders
Company Information
Weibo Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Weibo Corporation
- Ticker: WB
- Exchange: NasdaqGS
- Founded: 2009
- Industry: Interactive Media and Services
- Sector: Media
- Implied Market Cap: US$5.502b
- Shares outstanding: 236.56m
- Website: https://weibo.com
Number of Employees
Location
- Weibo Corporation
- QIHAO Plaza
- 8th Floor
- Beijing
- 100027
- China
Listings
Company Analysis and Financial Data Status
Data | Last Updated (UTC time) |
---|---|
Company Analysis | 2022/06/27 00:00 |
End of Day Share Price | 2022/06/27 00:00 |
Earnings | 2022/03/31 |
Annual Earnings | 2021/12/31 |
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.