World Wrestling Entertainment
Market Cap
US$4.3b
Last Updated
2021/04/19 22:48 UTC
Data Sources
Company Financials +
Executive Summary
World Wrestling Entertainment, Inc., an integrated media and entertainment company, engages in the sports entertainment business in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. More Details
Rewards
Risk Analysis
Snowflake Analysis
Outstanding track record with adequate balance sheet.
Similar Companies
Share Price & News
How has World Wrestling Entertainment's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: WWE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: WWE's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-0.1%
WWE
-0.4%
US Entertainment
1.3%
US Market
1 Year Return
39.9%
WWE
69.8%
US Entertainment
53.8%
US Market
Return vs Industry: WWE underperformed the US Entertainment industry which returned 69.8% over the past year.
Return vs Market: WWE underperformed the US Market which returned 53.8% over the past year.
Shareholder returns
| WWE | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.1% | -0.4% | 1.3% |
| 30 Day | -0.7% | 0.3% | 5.1% |
| 90 Day | 8.9% | 3.6% | 8.9% |
| 1 Year | 41.3%39.9% | 70.0%69.8% | 56.6%53.8% |
| 3 Year | 48.6%44.9% | 103.2%100.3% | 64.4%53.6% |
| 5 Year | 262.6%238.7% | 169.9%158.5% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is World Wrestling Entertainment's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
If You Like EPS Growth Then Check Out World Wrestling Entertainment (NYSE:WWE) Before It's Too Late2 weeks ago | Simply Wall St
World Wrestling Entertainment (NYSE:WWE) Could Easily Take On More Debt1 month ago | Simply Wall St
Is Now An Opportune Moment To Examine World Wrestling Entertainment, Inc. (NYSE:WWE)?Valuation
Is World Wrestling Entertainment undervalued compared to its fair value and its price relative to the market?
6.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WWE ($56.36) is trading below our estimate of fair value ($60.84)
Significantly Below Fair Value: WWE is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: WWE is good value based on its PE Ratio (33.2x) compared to the US Entertainment industry average (36.4x).
PE vs Market: WWE is poor value based on its PE Ratio (33.2x) compared to the US market (22.4x).
Price to Earnings Growth Ratio
PEG Ratio: WWE is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: WWE is overvalued based on its PB Ratio (11.3x) compared to the US Entertainment industry average (5x).
Future Growth
How is World Wrestling Entertainment forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
12.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WWE's forecast earnings growth (12.2% per year) is above the savings rate (2%).
Earnings vs Market: WWE's earnings (12.2% per year) are forecast to grow slower than the US market (17.9% per year).
High Growth Earnings: WWE's earnings are forecast to grow, but not significantly.
Revenue vs Market: WWE's revenue (8.6% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: WWE's revenue (8.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WWE's Return on Equity is forecast to be high in 3 years time (31.3%)
Past Performance
How has World Wrestling Entertainment performed over the past 5 years?
39.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WWE has high quality earnings.
Growing Profit Margin: WWE's current net profit margins (13.5%) are higher than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: WWE's earnings have grown significantly by 39.7% per year over the past 5 years.
Accelerating Growth: WWE's earnings growth over the past year (70.2%) exceeds its 5-year average (39.7% per year).
Earnings vs Industry: WWE earnings growth over the past year (70.2%) exceeded the Entertainment industry 52.6%.
Return on Equity
High ROE: WWE's Return on Equity (33.9%) is considered high.
Financial Health
How is World Wrestling Entertainment's financial position?
Financial Position Analysis
Short Term Liabilities: WWE's short term assets ($726.9M) exceed its short term liabilities ($496.3M).
Long Term Liabilities: WWE's short term assets ($726.9M) exceed its long term liabilities ($412.3M).
Debt to Equity History and Analysis
Debt Level: WWE's debt to equity ratio (81.5%) is considered high.
Reducing Debt: WWE's debt to equity ratio has increased from 10.3% to 81.5% over the past 5 years.
Debt Coverage: WWE's debt is well covered by operating cash flow (101%).
Interest Coverage: WWE's interest payments on its debt are well covered by EBIT (6.5x coverage).
Balance Sheet
Dividend
What is World Wrestling Entertainment current dividend yield, its reliability and sustainability?
0.84%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: WWE's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: WWE's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: WWE's dividend payments have been volatile in the past 10 years.
Growing Dividend: WWE's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.3%), WWE's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: WWE's dividends in 3 years are forecast to be well covered by earnings (23.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Vince McMahon (74 yo)
11.58yrs
Tenure
US$3,503,703
Compensation
Mr. Vincent K. McMahon, also known as Vince, has been Chairman of World Wrestling Entertainment, Inc. (WWE) since 1987 and has been its Chief Executive Officer since September 16, 2009. He is a third gener...
CEO Compensation Analysis
Compensation vs Market: Vince's total compensation ($USD3.50M) is below average for companies of similar size in the US market ($USD5.16M).
Compensation vs Earnings: Vince's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: WWE's management team is considered experienced (4 years average tenure).
Board Members
Experienced Board: WWE's board of directors are considered experienced (6.2 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
World Wrestling Entertainment, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: World Wrestling Entertainment, Inc.
- Ticker: WWE
- Exchange: NYSE
- Founded: 1980
- Industry: Movies and Entertainment
- Sector: Media
- Market Cap: US$4.303b
- Shares outstanding: 76.36m
- Website: https://corporate.wwe.com
Number of Employees
Location
- World Wrestling Entertainment, Inc.
- 1241 East Main Street
- Stamford
- Connecticut
- 6902
- United States
Listings
Biography
World Wrestling Entertainment, Inc., an integrated media and entertainment company, engages in the sports entertainment business in North America, Europe, the Middle East, Africa, the Asia Pacific, and Lat...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 22:48 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.