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.

Rewards

Trading at 41.2% below its fair value

Earnings are forecast to grow 12.41% per year

Earnings have grown 61.1% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Good value with adequate balance sheet.


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

-1.4%

WB

-0.5%

US Interactive Media and Services

0.6%

US Market


1 Year Return

-32.6%

WB

24.3%

US Interactive Media and Services

20.8%

US Market

Return vs Industry: WB underperformed the US Interactive Media and Services industry which returned 24.3% over the past year.

Return vs Market: WB underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

WBIndustryMarket
7 Day-1.4%-0.5%0.6%
30 Day0.2%2.2%2.5%
90 Day-13.2%4.5%4.9%
1 Year-32.6%-32.6%24.4%24.3%23.5%20.8%
3 Year0.4%0.4%53.8%53.7%46.5%37.0%
5 Year175.9%175.9%114.0%113.4%64.6%46.5%

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?

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WB ($43.53) is trading below our estimate of fair value ($73.99)

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 (17.3x) compared to the Interactive Media and Services industry average (28.7x).

PE vs Market: WB is good value based on its PE Ratio (17.3x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: WB is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: WB is overvalued based on its PB Ratio (4.6x) compared to the US Interactive Media and Services industry average (2.7x).


Next Steps

Future Growth

How is Weibo forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WB's forecast earnings growth (12.4% per year) is above the savings rate (1.7%).

Earnings vs Market: WB's earnings (12.4% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: WB's revenue (10.1% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: WB's revenue (10.1% 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 high in 3 years time (20.8%)


Next Steps

Past Performance

How has Weibo performed over the past 5 years?

61.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WB has a high level of non-cash earnings.

Growing Profit Margin: WB's current net profit margins (31.8%) are lower than last year (33.2%).


Past Earnings Growth Analysis

Earnings Trend: WB has become profitable over the past 5 years, growing earnings by 61.1% per year.

Accelerating Growth: WB's earnings growth over the past year (5.6%) is below its 5-year average (61.1% per year).

Earnings vs Industry: WB earnings growth over the past year (5.6%) underperformed the Interactive Media and Services industry 15.9%.


Return on Equity

High ROE: WB's Return on Equity (26.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Weibo's financial position?


Financial Position Analysis

Short Term Liabilities: WB's short term assets ($3.5B) exceed its short term liabilities ($778.7M).

Long Term Liabilities: WB's short term assets ($3.5B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: WB's debt to equity ratio (78.9%) is considered high.

Reducing Debt: WB's debt to equity ratio has increased from 4.5% to 78.9% 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

Inventory Level: WB has a low level of unsold assets or inventory.

Debt Coverage by Assets: WB's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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

5.7yrs

Average board tenure


CEO

Gaofei Wang (40yo)

5.8yrs

Tenure

0

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 Age and Tenure

5.7yrs

Average Tenure

51yo

Average Age

Experienced Board: WB's board of directors are considered experienced (5.7 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.


Ownership Breakdown

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


Management Team

  • Gaofei Wang (40yo)

    Chief Executive Officer

    • Tenure: 5.8yrs
  • Yajuan Wang (50yo)

    Senior Vice President of Advertising Business

    • Tenure: 0yrs
  • Fei Cao (44yo)

    CFO & VP of Finance

    • Tenure: 2.3yrs
  • Wen Li

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Pehong Chen (61yo)

    Independent Director

    • Tenure: 3.9yrs
  • Charles Chao (53yo)

    Chairman

    • Tenure: 10.3yrs
  • Frank Tang (51yo)

    Independent Director

    • Tenure: 5.7yrs
  • Daniel Zhang (47yo)

    Director

    • Tenure: 5.6yrs
  • Hong Du (47yo)

    Director

    • Tenure: 5.9yrs

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$9.796b
  • 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)YesADR EA REPR 1 ORD SHS CL 'A'USUSDApr 2014
2WBADB (Deutsche Boerse AG)YesADR EA REPR 1 ORD SHS CL 'A'DEEURApr 2014
WB NBMV (Bolsa Mexicana de Valores)YesADR EA REPR 1 ORD SHS CL 'A'MXMXNApr 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 Market ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:31
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.