Now trading at a price of $15.02, Warner Bros. Discovery has moved 0.6% so far today.
Warner Bros. Discovery shares moved -42.6% over the last 52 weeks, with a high of $27.5 and a low of $8.82. During this time, the stock lagged the S&P 500 index by -35.0%. As of January 2022, the company's 50-day average price is $14.9. Warner Bros. Discovery, Inc., operates a media and entertainment company worldwide. The large-cap Telecommunications company has 37,500 full time employees and is based in New York, NY. Warner Bros. Discovery has not offered any dividends in the last year.
The Company Has a Steady Stream of Strong Cash Flows:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $11,144 | $10,671 | $12,191 | $33,817 |
| Revenue Growth | n/a | -4.24% | 14.24% | 177.39% |
| Gross Margins | 65.7% | 63.8% | 62.1% | 39.6% |
| Gross Margins Growth | n/a | -2.89% | -2.66% | -36.23% |
| Operating Margins | 28.6% | 25.6% | 16.2% | -10.3% |
| Operating Margins Growth | n/a | -10.49% | -36.72% | -163.58% |
| Net Margins | 18.57% | 11.42% | 8.25% | -21.8% |
| Net Margins Growth | n/a | -38.5% | -27.76% | -364.24% |
| Earnings Per Share | $2.88 | $1.81 | $1.54 | -$3.9 |
| EPS Growth | n/a | -37.15% | -14.92% | -353.25% |
| Diluted Shares (MM) | 711 | 672 | 664 | 2,436 |
| Free Cash Flow (MM) | $3,110 | $2,337 | $2,425 | $3,317 |
| FCF Growth | n/a | -24.86% | 3.77% | 36.78% |
| Capital Expenditures (MM) | -$289 | -$402 | -$373 | -$987 |
| Net Debt / EBITDA | 1.87 | 1.92 | 1.54 | 2.55 |
Warner Bros. Discovery has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. But based on its EPS guidance of 0.92, the company has a forward P/E ratio of 16.3. In contrast, the Telecommunications sector's average P/E ratio is 18.85.
On the other hand, Warner Bros. Discovery is possibly undervalued in terms of its net assets because its P/B ratio is 0.8 compared to its sector average of 3.12.
Despite Warner Bros. Discovery's elevated earnings multiple, the company's impressive cash flow trend, decent P/B ratio, and reasonable leverage demonstrate the company may be fairly valued.
Warner Bros. Discovery Benefits From Positive Market Indicators:
23 analysts are following Warner Bros. Discovery and have set target prices ranging from $11.0 to $36.0 per share. On average, they have given the company a rating of buy. At the current price of $15.02, WBD is trading -28.78% away from its average analyst target price of $21.09 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 2.8% of the company's shares are tied to short positions. Institutions own 59.6% of Warner Bros. Discovery's shares, while the insider ownership rate stands at 9.21%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $3,200,380,919.
