Warner Bros. Discovery logged a 2.5% change during today's afternoon session, and is now trading at a price of $11.6 per share. The S&P 500 index moved 1.3% and the Nasdaq posted a 2.3% change. WBD's trading volume is 9,713,154 compared to the stock's average volume of 28,987,117.
Warner Bros. Discovery shares moved -60.4% over the last 52 weeks, with a high of $31.55 and a low of $8.82. During this time, the stock lagged the S&P 500 index by -43.8%. As of January 2022, the company's 50-day average price is $10.8236. Warner Bros. Discovery, Inc., a media company, provides content across various distribution platforms in approximately 50 languages worldwide. The large-cap Communication Services company has 11,000 full time employees and is based in New York, NY. Warner Bros. Discovery has not offered any dividends in the last year.
Declining EPS Growth Trend with Healthy Leverage Levels:
2019-12-31 | 2020-12-31 | 2021-12-31 | |
---|---|---|---|
Revenue (MM) | $11,144 | $10,671 | $12,191 |
Revenue Growth | n/a | -4.24% | 14.24% |
Gross Margins | 65.7% | 63.8% | 62.1% |
Gross Margins Growth | n/a | -2.89% | -2.66% |
Operating Margins | 28.6% | 25.6% | 16.2% |
Operating Margins Growth | n/a | -10.49% | -36.72% |
Earnings Per Share | $2.88 | $1.81 | $1.54 |
EPS Growth | n/a | -37.15% | -14.92% |
Free Cash Flow (MM) | $3,110 | $2,337 | $2,425 |
FCF Growth | n/a | -24.86% | 3.77% |
Capital Expenditures (MM) | -$289 | -$402 | -$373 |
Net Debt / EBITDA | 1.87 | 1.92 | 1.54 |
The Market Is Undervaluing Warner Bros. Discovery:
Compared to the Communication Services sector's average of 18.65, Warner Bros. Discovery has a trailing twelve month price to earnings (P/E) ratio of 6.4 and, based on its EPS guidance of 0.09, an expected P/E ratio of 128.9.
Warner Bros. Discovery is undervalued in terms of its assets because its price to book (P/B) ratio is 0.6 compared to its sector average of 2.62. The company's shares are currently trading -62.1% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 2.08 * 19.982) = $30.58
Warner Bros. Discovery Is the Subject of Mixed Market Indicators:
20 analysts are following Warner Bros. Discovery and have set target prices ranging from $8 to $40 per share. On average, they have given the company a rating of buy. At the current price of $11.6, WBD is trading -43.69% away from its average analyst target price of $20.6 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 4.4% of the company's shares are tied to short positions. Institutions own 56.2% of Warner Bros. Discovery's shares, while the insider ownership rate stands at 9.22%. The biggest shareholder is the Vanguard Group, Inc. with a 7% stake in the company worth approximately $2,044,428,402.