NYSE:WWE

Stock Analysis Report

World Wrestling Entertainment

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.

Snowflake

Fundamentals

Solid track record with high growth potential.


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


Market Performance


7 Day Return

-0.8%

WWE

0.1%

US Entertainment

1.0%

US Market


1 Year Return

-17.1%

WWE

1.9%

US Entertainment

8.0%

US Market

Return vs Industry: WWE underperformed the US Entertainment industry which returned 1.9% over the past year.

Return vs Market: WWE underperformed the US Market which returned 8% over the past year.


Shareholder returns

WWEIndustryMarket
7 Day-0.8%0.1%1.0%
30 Day-6.3%-0.9%-0.07%
90 Day1.1%-4.5%-1.0%
1 Year-16.5%-17.1%2.7%1.9%10.4%8.0%
3 Year259.4%245.4%52.9%47.9%46.2%36.7%
5 Year464.3%411.4%95.5%82.9%64.3%46.2%

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?

27.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WWE ($69.04) is trading below our estimate of fair value ($95.23)

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 poor value based on its PE Ratio (70.1x) compared to the Entertainment industry average (43.2x).

PE vs Market: WWE is poor value based on its PE Ratio (70.1x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: WWE is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: WWE is overvalued based on its PB Ratio (16.6x) compared to the US Entertainment industry average (2.8x).


Next Steps

Future Growth

How is World Wrestling Entertainment forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWE's forecast earnings growth (28.9% per year) is above the savings rate (2.7%).

Earnings vs Market: WWE's earnings (28.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WWE's revenue (10.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: WWE's revenue (10.9% 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 (38.4%)


Next Steps

Past Performance

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

55.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WWE has become profitable over the past 5 years, growing earnings by 55.3% per year.

Accelerating Growth: WWE's earnings growth over the past year (49.3%) is below its 5-year average (55.3% per year).

Earnings vs Industry: WWE earnings growth over the past year (49.3%) exceeded the Entertainment industry 12%.


Return on Equity

High ROE: WWE's Return on Equity (23.6%) is considered high.


Return on Assets

ROA vs Industry: WWE has a higher Return on Assets than the Entertainment industry average last year.


Return on Capital Employed

ROCE Improving: WWE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is World Wrestling Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: WWE's short term assets ($462.1M) exceeds its short term liabilities ($374.1M)

Long Term Liabilities: WWE's short term assets (462.1M) exceeds its long term liabilities (43.5M)


Debt to Equity History and Analysis

Debt Level: WWE's debt to equity ratio (65.8%) is considered high

Reducing Debt: WWE's debt to equity ratio has increased from 12.2% to 65.8% over the past 5 years.

Debt Coverage: WWE's debt is well covered by operating cash flow (51%).

Interest Coverage: WWE's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

Inventory Level: WWE has a high level of physical assets or inventory.

Debt Coverage by Assets: WWE's debt is covered by short term assets (assets are 2.158100x debt).


Next Steps

  • Explore more healthy companies in the Media industry.

Dividend

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

0.69%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WWE's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: WWE's dividend (0.7%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: WWE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WWE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WWE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WWE'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 World Wrestling Entertainment's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Vince McMahon (73yo)

10.1yrs

Tenure

US$5,658,238

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 ($USD5.66M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Vince's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.7yrs

Average Tenure

53yo

Average Age

Experienced Management: WWE's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

58yo

Average Age

Experienced Board: WWE's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: WWE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$276,32309 Aug 19
Patricia Gottesman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,123
Max PriceUS$67.02
SellUS$10,958,68609 Aug 19
Michelle Wilson
EntityIndividual
Role
Member of the Board of Directors
Co-President & Director
Shares158,134
Max PriceUS$69.30
SellUS$1,027,60002 Aug 19
Kevin Dunn
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Television Production
Shares14,000
Max PriceUS$73.40
SellUS$299,84731 Jul 19
Patricia Gottesman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,112
Max PriceUS$72.92

Ownership Breakdown


Management Team

  • Vince McMahon (73yo)

    Co-Founder

    • Tenure: 10.1yrs
    • Compensation: US$5.66m
  • George Barrios (53yo)

    Co-President & Director

    • Tenure: 1.7yrs
    • Compensation: US$9.11m
  • Kevin Dunn (58yo)

    Executive Vice President of Television Production

    • Tenure: 5.3yrs
    • Compensation: US$5.93m
  • Rajan Mehta

    CTO & Executive VP

    • Tenure: 4.2yrs
  • Michelle Wilson (53yo)

    Co-President & Director

    • Tenure: 1.7yrs
    • Compensation: US$9.19m
  • Triple H Levesque (49yo)

    Executive VP of Talent

    • Tenure: 4.7yrs
    • Compensation: US$5.03m
  • Mark Kowal (43yo)

    Chief Accounting Officer

    • Tenure: 5.3yrs
  • Michael Weitz

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • George Wells

    Managing Director of International Operations and Senior Vice President

    • Tenure: 0yrs
  • Brian Nurse (47yo)

    Senior VP

    • Tenure: 1.1yrs

Board Members

  • Stuart Goldfarb (65yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$184.48k
  • Frank Riddick (62yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: US$201.98k
  • Vince McMahon (73yo)

    Co-Founder

    • Tenure: 10.1yrs
    • Compensation: US$5.66m
  • George Barrios (53yo)

    Co-President & Director

    • Tenure: 1.7yrs
    • Compensation: US$9.11m
  • Patricia Gottesman (60yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$174.48k
  • Jeff Speed (56yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: US$201.98k
  • Stephanie Levesque (42yo)

    Chief Brand Officer & Director

    • Tenure: 4.7yrs
  • Laureen Ong (66yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$170.33k
  • Michelle Wilson (53yo)

    Co-President & Director

    • Tenure: 1.7yrs
    • Compensation: US$9.19m
  • Triple H Levesque (49yo)

    Executive VP of Talent

    • Tenure: 4.7yrs
    • Compensation: US$5.03m

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$5.431b
  • Shares outstanding: 78.66m
  • Website: https://corporate.wwe.com

Number of Employees


Location

  • World Wrestling Entertainment, Inc.
  • 1241 East Main Street
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WWENYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 1999
WWFADB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 1999
0M1GLSE (London Stock Exchange)YesClass A Common StockGBUSDOct 1999

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 Analysis2019/10/21 23:47
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.