NYSE:WWE

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World Wrestling Entertainment

Market Cap

US$4.4b

Last Updated

2021/06/20 23:18 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


Snowflake Analysis

Solid 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 +/- 5% a week.

Volatility Over Time: WWE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-7.5%

WWE

-1.5%

US Entertainment

-1.9%

US Market


1 Year Return

27.9%

WWE

40.1%

US Entertainment

38.2%

US Market

Return vs Industry: WWE underperformed the US Entertainment industry which returned 40.1% over the past year.

Return vs Market: WWE underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

WWEIndustryMarket
7 Day-7.5%-1.5%-1.9%
30 Day0.5%2.3%1.1%
90 Day0.2%-3.0%4.3%
1 Year29.1%27.9%40.2%40.1%40.4%38.2%
3 Year-11.7%-13.9%68.5%66.3%57.5%47.8%
5 Year238.9%218.1%158.2%147.6%127.2%101.7%

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

Valuation

Is World Wrestling Entertainment undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WWE ($57.83) is trading below our estimate of fair value ($130.08)

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


Price To Earnings Ratio

PE vs Industry: WWE is good value based on its PE Ratio (30x) compared to the US Entertainment industry average (35.7x).

PE vs Market: WWE is poor value based on its PE Ratio (30x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WWE is overvalued based on its PB Ratio (12.4x) 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?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWE's forecast earnings growth (18.1% per year) is above the savings rate (2%).

Earnings vs Market: WWE's earnings (18.1% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: WWE's revenue (8.8% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: WWE's revenue (8.8% 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 very high in 3 years time (46.7%).


Past Performance

How has World Wrestling Entertainment performed over the past 5 years?

39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWE has high quality earnings.

Growing Profit Margin: WWE's current net profit margins (15.8%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: WWE's earnings have grown significantly by 39.2% per year over the past 5 years.

Accelerating Growth: WWE's earnings growth over the past year (33.9%) is below its 5-year average (39.2% per year).

Earnings vs Industry: WWE earnings growth over the past year (33.9%) exceeded the Entertainment industry 32.9%.


Return on Equity

High ROE: WWE's Return on Equity (41.8%) is considered outstanding.


Financial Health

How is World Wrestling Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: WWE's short term assets ($614.2M) exceed its short term liabilities ($406.8M).

Long Term Liabilities: WWE's short term assets ($614.2M) exceed its long term liabilities ($413.0M).


Debt to Equity History and Analysis

Debt Level: WWE's debt to equity ratio (61.1%) is considered high.

Reducing Debt: WWE's debt to equity ratio has increased from 9.4% to 61.1% over the past 5 years.

Debt Coverage: WWE's debt is well covered by operating cash flow (143.8%).

Interest Coverage: WWE's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Dividend

What is World Wrestling Entertainment current dividend yield, its reliability and sustainability?

0.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WWE's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: WWE's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 low payout ratio (24.9%), 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 (19.5% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Vince McMahon (74 yo)

11.75yrs

Tenure

US$3,905,792

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 ($USD3.91M) is about average for companies of similar size in the US market ($USD5.38M).

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 (4.1 years average tenure).


Board Members

Experienced Board: WWE's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WWE insiders have only sold shares 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$4.416b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 23:18
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.