Wolverine World Wide Inc

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WWW : NYSE : Consumer Goods
$24.68 up 0.26 | 1.1%
Today's Range: 24.5 - 24.75
Avg. Daily Volume: 873100.0
12/08/16 - 10:03 AM ET

Financial Analysis


WOLVERINE WORLD WIDE's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. WOLVERINE WORLD WIDE has average liquidity. Currently, the Quick Ratio is 1.16 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)603.7678.9
EBITDA ($mil)79.991.8
EBIT ($mil)70.280.7
Net Income ($mil)48.245.8


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)530.9196.4
Total Assets ($mil)2759.02588.2
Total Debt ($mil)1052.4825.6
Equity ($mil)1032.21023.3


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin40.9641.66
EBITDA Margin13.2313.52
Operating Margin11.6311.89
Sales Turnover0.911.06
Return on Assets3.664.7
Return on Equity9.811.91
Debt Q3 FY16 Q3 FY15
Current Ratio1.853.12
Debt/Capital0.50.45
Interest Expense8.69.0
Interest Coverage8.168.97


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)99.16102.87
Div / share0.060.06
EPS0.490.44
Book value / share10.419.95
Institutional Own % n/a n/a
Avg Daily Volume861812.01132872.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.53 for the Textiles, Apparel & Luxury Goods industry and a discount compared to the S&P 500 average of 25.45. To use another comparison, its price-to-book ratio of 2.25 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 5.35. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, WOLVERINE WORLD WIDE proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WWW 22.71 Peers 24.53   WWW 9.12 Peers 19.92

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

WWW is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WWW is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
WWW 15.09 Peers 20.68   WWW 1.82 Peers 2.74

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WWW is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WWW trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WWW 2.25 Peers 5.35   WWW -11.97 Peers 4.54

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WWW is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WWW is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WWW 0.92 Peers 2.21   WWW -8.48 Peers 6.77

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WWW is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WWW significantly trails its peers on the basis of sales growth

 

 

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