| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 0/6 |
| Dividends | 0/6 |
WE Stock Overview
WeWork Inc. provides flexible workspace solutions to individuals and organizations worldwide.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 1 more risk
WeWork Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$6.19 |
| 52 Week High | US$14.97 |
| 52 Week Low | US$4.50 |
| Beta | 0 |
| 1 Month Change | -11.57% |
| 3 Month Change | -8.97% |
| 1 Year Change | -45.41% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -36.84% |
Recent News & Updates
WeWork: Heavy Debt Load With Weak Profitability
WeWork, once a Wall Street darling, went public through a SPAC merger with BowX Acquisition Corp. quietly last year. The company has made substantial changes regarding its management team and business strategy after founder Adam Neumann resigned. Despite the changes, it is carrying a heavy debt load while being nowhere near cash flow positive. The deteriorating macro environment may also post further headwind for the company going forward. I believe the company is a sell.
WeWork Could Soon Be Wee Work
WeWork has a broken business model that is unlikely to be profitable. The company is likely to find it hard to service its debt. A fundamental analysis suggests big downside in the stock.
Shareholder Returns
| WE | US Real Estate | US Market | |
|---|---|---|---|
| 7D | 15.7% | 9.2% | 6.6% |
| 1Y | -45.4% | -51.2% | -18.4% |
Return vs Industry: WE exceeded the US Real Estate industry which returned -51.2% over the past year.
Return vs Market: WE underperformed the US Market which returned -18.4% over the past year.
Price Volatility
| WE volatility | |
|---|---|
| WE Average Weekly Movement | 14.7% |
| Real Estate Industry Average Movement | 8.4% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: WE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.
Volatility Over Time: WE's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2010 | 4,400 | Sandeep Mathrani | https://www.wework.com |
WeWork Inc. provides flexible workspace solutions to individuals and organizations worldwide. The company offers workstation, private office, and customized floor solutions; and various amenities and services, such as private phone booths, internet, high-speed business printers and copiers, mail and package handling, front desk services, off-peak building access, common areas, and daily enhanced cleaning solutions. It also offers various value-add services; business and technical service solutions, including professional employer organization and payroll services, remote workforce solutions, human resources benefits, dedicated bandwidth, and IT equipment co-location solutions.
WeWork Fundamentals Summary
| WE fundamental statistics | |
|---|---|
| Market Cap | US$4.49b |
| Earnings (TTM) | -US$3.25b |
| Revenue (TTM) | US$2.74b |
1.6x
P/S Ratio-1.3x
P/E RatioIs WE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| WE income statement (TTM) | |
|---|---|
| Revenue | US$2.74b |
| Cost of Revenue | US$594.12m |
| Gross Profit | US$2.14b |
| Other Expenses | US$5.39b |
| Earnings | -US$3.25b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -4.60 |
| Gross Margin | 78.29% |
| Net Profit Margin | -118.66% |
| Debt/Equity Ratio | -155.5% |
How did WE perform over the long term?
See historical performance and comparisonValuation
Is WE undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for WE?
Other financial metrics that can be useful for relative valuation.
| What is WE's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$4.49b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 9.3x |
| Enterprise Value/EBITDA | -18.4x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does WE's PS Ratio compare to its peers?
| WE PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 7.2x |
Price-To-Sales vs Peers: WE is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (7.2x).
Price to Earnings Ratio vs Industry
How does WE's PE Ratio compare vs other companies in the US Real Estate Industry?
Price-To-Sales vs Industry: WE is expensive based on its Price-To-Sales Ratio (1.6x) compared to the US Real Estate industry average (1.3x)
Price to Sales Ratio vs Fair Ratio
What is WE's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 1.6x |
| Fair PS Ratio | 10.6x |
Price-To-Sales vs Fair Ratio: WE is good value based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (10.6x).
Share Price vs Fair Value
What is the Fair Price of WE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: WE ($6.19) is trading below our estimate of fair value ($41.78)
Significantly Below Fair Value: WE is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate WE's PEG Ratio to determine if it is good value.
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Future Growth
How is WeWork forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
79.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WE is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: WE is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: WE is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: WE's revenue (20.7% per year) is forecast to grow faster than the US market (8.4% per year).
High Growth Revenue: WE's revenue (20.7% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if WE's Return on Equity is forecast to be high in 3 years time
Discover growth companies
Past Performance
How has WeWork performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-30.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WE is currently unprofitable.
Growing Profit Margin: WE is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: WE is unprofitable, and losses have increased over the past 5 years at a rate of 30% per year.
Accelerating Growth: Unable to compare WE's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: WE is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (116.4%).
Return on Equity
High ROE: WE's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Discover strong past performing companies
Financial Health
How is WeWork's financial position?
Financial Health Score
0/6Financial Health Score 0/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: WE has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: WE has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: WE has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: WE's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: WE has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: WE has less than a year of cash runway if free cash flow continues to reduce at historical rates of 10.4% each year
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Dividend
What is WeWork current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
4.31%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate WE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate WE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if WE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if WE's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as WE has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Sandeep Mathrani (59 yo)
2.33yrs
Tenure
US$21,308,250
Compensation
Mr. Sandeep Lakhmi Mathrani serves as Executive Chairman of the Board at WeWork Inc. since March 2022. He serves as Independent Director at Tanger Factory Outlet Centers, Inc. since June 3, 2021. He serves...
CEO Compensation Analysis
Compensation vs Market: Sandeep's total compensation ($USD21.31M) is above average for companies of similar size in the US market ($USD6.88M).
Compensation vs Earnings: Sandeep's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: WE's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
Experienced Board: WE's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.
Top Shareholders
Company Information
WeWork Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: WeWork Inc.
- Ticker: WE
- Exchange: NYSE
- Founded: 2010
- Industry: Real Estate Operating Companies
- Sector: Real Estate
- Implied Market Cap: US$4.490b
- Market Cap: US$4.366b
- Shares outstanding: 725.33m
- Website: https://www.wework.com
Number of Employees
Location
- WeWork Inc.
- 575 Lexington Avenue
- 16th Floor
- New York
- New York
- 10022
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/26 00:00 |
| End of Day Share Price | 2022/06/24 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.