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.

Rewards

Trading at 32.6% below its fair value

Earnings are forecast to grow 19.97% per year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet with acceptable track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.3%

WWE

-0.3%

US Entertainment

0.06%

US Market


1 Year Return

-46.2%

WWE

20.4%

US Entertainment

19.4%

US Market

Return vs Industry: WWE underperformed the US Entertainment industry which returned 20.4% over the past year.

Return vs Market: WWE underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

WWEIndustryMarket
7 Day6.3%-0.3%0.06%
30 Day-24.9%1.6%1.1%
90 Day-22.8%7.1%8.9%
1 Year-45.9%-46.2%21.3%20.4%21.9%19.4%
3 Year125.7%117.8%54.6%49.5%48.9%39.3%
5 Year203.7%177.6%92.0%80.2%71.9%53.1%

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?

32.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WWE ($45.96) is trading below our estimate of fair value ($68.18)

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


Price To Earnings Ratio

PE vs Industry: WWE is poor value based on its PE Ratio (46.6x) compared to the Entertainment industry average (24.8x).

PE vs Market: WWE is poor value based on its PE Ratio (46.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: WWE is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: WWE is overvalued based on its PB Ratio (12.9x) compared to the US Entertainment industry average (2.5x).


Next Steps

Future Growth

How is World Wrestling Entertainment forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WWE's forecast earnings growth (20% per year) is above the savings rate (1.7%).

Earnings vs Market: WWE's earnings (20% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: WWE's revenue (7.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WWE's revenue (7.2% 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 (29.7%)


Next Steps

Past Performance

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

42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WWE has high quality earnings.

Growing Profit Margin: WWE's current net profit margins (8%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: WWE has become profitable over the past 5 years, growing earnings by 42.5% per year.

Accelerating Growth: WWE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WWE had negative earnings growth (-22.6%) over the past year, making it difficult to compare to the Entertainment industry average (-8.9%).


Return on Equity

High ROE: WWE's Return on Equity (28%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is World Wrestling Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: WWE's short term assets ($404.3M) exceed its short term liabilities ($344.3M).

Long Term Liabilities: WWE's short term assets ($404.3M) exceed its long term liabilities ($372.6M).


Debt to Equity History and Analysis

Debt Level: WWE's debt to equity ratio (77.9%) is considered high.

Reducing Debt: WWE's debt to equity ratio has increased from 12.6% to 77.9% over the past 5 years.

Debt Coverage: WWE's debt is well covered by operating cash flow (56.8%).

Interest Coverage: WWE's interest payments on its debt are well covered by EBIT (5.6x 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 1.9x debt).


Next Steps

Dividend

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

1.03%

Current Dividend Yield


Upcoming Dividend Payment

Purchase World Wrestling Entertainment before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: WWE's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: WWE's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (48.7%), 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 (28.8% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Vince McMahon (73yo)

10.4yrs

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 ($USD5.66M) is about average for companies of similar size in the US market ($USD4.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Vincent McMahon
Co-Founder10.4yrsUS$5.66m37.12% $1.3b
Frank Riddick
Interim CFO & Director11.5yrsUS$201.98k0.026% $923.9k
Kevin Dunn
Executive Vice President of Television Production5.6yrsUS$5.93m0.18% $6.5m
Paul Levesque
Executive VP of Talent5yrsUS$5.03m0.22% $7.8m
George Wells
Managing Director of International Operations and Senior Vice President0yrsno datano data
Mark Kowal
Chief Accounting Officer5.7yrsno data0.021% $749.1k
Rajan Mehta
CTO & Executive VP4.5yrsno datano data
Michael Weitz
Senior Vice President of Investor Relations0yrsno datano data
Brian Nurse
Senior VP1.4yrsno data0.00052% $18.7k
Brian Flinn
Chief Marketing & Communications Officer4.5yrsno datano data

5.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: WWE's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vincent McMahon
Co-Founder10.4yrsUS$5.66m37.12% $1.3b
Frank Riddick
Interim CFO & Director11.5yrsUS$201.98k0.026% $923.9k
Paul Levesque
Executive VP of Talent5yrsUS$5.03m0.22% $7.8m
Stephanie Levesque
Chief Brand Officer & Director5yrsno data2.61% $93.9m
Stuart Goldfarb
Independent Director8.5yrsUS$184.48k0.032% $1.1m
Man Singh
Independent Director1.2yrsUS$3.01k0.0020% $71.2k
Patricia Gottesman
Independent Director8.7yrsUS$174.48k0.022% $806.7k
Jeffrey Speed
Independent Director11.5yrsUS$201.98k0.024% $861.7k
Laureen Ong
Independent Director5.7yrsUS$170.33k0.017% $602.8k
Robyn Peterson
Independent Director5yrsUS$164.48k0.014% $504.9k

7.1yrs

Average Tenure

61yo

Average Age

Experienced Board: WWE's board of directors are considered experienced (7.1 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$3.596b
  • Shares outstanding: 77.31m
  • 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 Latin America. It operates through three segments: Media, Live Events, and Consumer Products. The Media segment engages in the production and monetization of long-form and short-form media content across various platforms, including WWE Network, pay television, and digital and social media, as well as filmed entertainment. The Live Events segment is involved in the sale of tickets, including primary and secondary distribution; provision of event services; and sale of travel packages related to its live events. The Consumer Products segment engages in merchandising of WWE branded products, such as video games, toys, apparels, and books through licensing arrangements and direct-to-consumer sales, as well as through e-commerce platforms. The company was founded in 1980 and is headquartered in Stamford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:15
End of Day Share Price2020/02/19 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.