Wolverine World Wide Inc

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WWW : NYSE : Consumer Goods
$24.57 -0.22 | -0.89%
Today's Range: 24.00 - 24.70
Avg. Daily Volume: 1,206,400
07/28/16 - 3:17 PM ET

Financial Analysis


WOLVERINE WORLD WIDE's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. WOLVERINE WORLD WIDE has strong liquidity. Currently, the Quick Ratio is 1.61 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

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

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)583.7630.1
EBITDA ($mil)54.162.1
EBIT ($mil)43.651.3
Net Income ($mil)24.025.3


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)221.7220.7
Total Assets ($mil)2453.52554.6
Total Debt ($mil)808.0833.1
Equity ($mil)1002.0994.7


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin40.6240.82
EBITDA Margin9.269.85
Operating Margin7.478.14
Sales Turnover1.061.09
Return on Assets4.025.24
Return on Equity9.8613.46
Debt Q2 FY16 Q2 FY15
Current Ratio3.082.83
Debt/Capital0.450.46
Interest Expense7.89.0
Interest Coverage5.595.7


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)99.68103.13
Div / share0.060.06
EPS0.240.24
Book value / share10.059.65
Institutional Own % n/a n/a
Avg Daily Volume1183370.0907655.0

Valuation


BUY. WOLVERINE WORLD WIDE's P/E ratio indicates a discount compared to an average of 27.40 for the Textiles, Apparel & Luxury Goods industry and a value on par with the S&P 500 average of 25.10. To use another comparison, its price-to-book ratio of 2.42 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.87. 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 24.83 Peers 27.40   WWW 12.17 Peers 24.58

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 15.90 Peers 23.35   WWW 1.92 Peers 2.94

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 2.42 Peers 5.87   WWW -24.62 Peers 7.82

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 0.94 Peers 2.41   WWW -6.84 Peers 7.93

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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