NasdaqGS:WB

Stock Analysis Report

Executive Summary

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Weibo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.3%

WB

9.7%

US Interactive Media and Services

9.4%

US Market


1 Year Return

-49.5%

WB

-5.1%

US Interactive Media and Services

-6.8%

US Market

Return vs Industry: WB underperformed the US Interactive Media and Services industry which returned -6.4% over the past year.

Return vs Market: WB underperformed the US Market which returned -8.1% over the past year.


Shareholder returns

WBIndustryMarket
7 Day11.3%9.7%9.4%
30 Day-10.5%-2.0%-3.9%
90 Day-24.0%-18.1%-16.5%
1 Year-49.5%-49.5%-5.0%-5.1%-4.8%-6.8%
3 Year-29.0%-29.0%29.7%29.6%23.4%15.2%
5 Year141.0%141.0%83.9%83.4%41.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WB ($35.54) is trading below our estimate of fair value ($49.14)

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


Price To Earnings Ratio

PE vs Industry: WB is good value based on its PE Ratio (16.2x) compared to the Interactive Media and Services industry average (19.6x).

PE vs Market: WB is poor value based on its PE Ratio (16.2x) compared to the US market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: WB is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: WB is overvalued based on its PB Ratio (3.5x) compared to the US Interactive Media and Services industry average (2x).


Next Steps

Future Growth

How is Weibo forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WB's forecast earnings growth (9.8% per year) is above the savings rate (1.7%).

Earnings vs Market: WB's earnings (9.8% per year) are forecast to grow slower than the US market (13.3% per year).

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

Revenue vs Market: WB's revenue (5.9% per year) is forecast to grow slower than the US market (6.9% per year).

High Growth Revenue: WB's revenue (5.9% 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 (16.6%).


Next Steps

Past Performance

How has Weibo performed over the past 5 years?

55.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WB has high quality earnings.

Growing Profit Margin: WB's current net profit margins (28%) are lower than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: WB has become profitable over the past 5 years, growing earnings by 55.2% per year.

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 (-13.5%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (5.5%).


Return on Equity

High ROE: WB's Return on Equity (21.6%) is considered high.


Next Steps

Financial Health

How is Weibo's financial position?


Financial Position Analysis

Short Term Liabilities: WB's short term assets ($3.6B) exceed its short term liabilities ($800.9M).

Long Term Liabilities: WB's short term assets ($3.6B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: WB's debt to equity ratio (73.5%) is considered high.

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

Debt Coverage: WB's debt is well covered by operating cash flow (28.9%).

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


Balance Sheet


Next Steps

Dividend

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


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 payouts.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.0yrs

Average board tenure


CEO

Gaofei Wang (40yo)

6.17s

Tenure

Mr. Gaofei Wang has been the Chief Executive Officer of Weibo Corporation since February 2014. Mr. Wang has had various product and business development roles at Weibo and was promoted to General Manager i ...


Board Members

NamePositionTenureCompensationOwnership
Pehong Chen
Independent Director4.25yrsno datano data
Guowei Chao
Chairman10.67yrsno datano data
Kui Tang
Independent Director6yrsno datano data
Yong Zhang
Director5.92yrsno datano data
Hong Du
Director6.25yrsno datano data

6.0yrs

Average Tenure

51yo

Average Age

Experienced Board: WB's board of directors are considered experienced (6 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Weibo Corporation's company bio, 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
  • Market Cap: US$8.016b
  • Shares outstanding: 225.04m
  • Website: https://www.weibo.com

Number of Employees


Location

  • Weibo Corporation
  • QIHAO Plaza
  • 8th Floor
  • Beijing
  • 100027
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WBNasdaqGS (Nasdaq Global Select)YesSPONSORED ADRUSUSDApr 2014
2WBADB (Deutsche Boerse AG)YesSPONSORED ADRDEEURApr 2014
WB NBMV (Bolsa Mexicana de Valores)YesSPONSORED ADRMXMXNApr 2014

Biography

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates in two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted feeds, accounts, and trends and search products that enable its customers to promote their brands and conduct marketing activities. In addition, the company offers copyright content, such as TV channels, online video Websites, and operators with copyright content through traffic resource exchange and content traffic sharing; MCNs and other self-media to manage and provide services to content creators on Weibo, such as MCNs, unions, and e-commerce partners; other app developers an application platform, which allows users to log into third-party applications; and Weibo Wallet product that enables platform partners to conduct interest generation activities on Weibo. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation is a subsidiary of Sina Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 08:54
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.