WBDWBD
US • —
$26.89
P/E
92.22
PEG
—
FCF Yield
—
Rev Growth YoY
-3.0% YoY
Gross Margin
45.5%
Health Score
5/10
D/E Ratio
0.91
Confidence
MEDIUM
Business Snapshot
Warner Bros. Discovery operates as a media and entertainment conglomerate, generating revenue from its film and television studios, streaming services like Max, and cable networks. The company operates in a highly competitive media landscape, facing entrenched rivals across streaming, theatrical distribution, and linear television, positioning it as a challenger undergoing significant restructuring. With a large-scale market cap and substantial revenue base, the company manages a portfolio of iconic intellectual property and content libraries. A defining characteristic is the company's high debt load following a major merger, which constrains strategic flexibility and drives a focus on debt reduction.
Financial Health
The gross margin stands at 45.5% for the current period, though a prior-year comparison is unavailable for trend analysis. Net margin is deeply negative at -4.7%, indicating the company is not profitable on a trailing twelve-month basis, though this reflects significant non-cash charges from its merger accounting...
Risk Assessment
- VALUATION — P/E of 92.22x is significantly elevated compared to the sector average of 22x, implying high growth expectations that are not matched by recent performance.
- EARNINGS QUALITY — The company has beaten earnings estimates only 2 out of the last 4 quarters, indicating a track record of inconsistent financial performance relative to consensus.
- TECHNICALS — RSI, MACD, and moving average data are unavailable for this period; momentum cannot be independently confirmed.
- REVENUE DECELERATION — Revenue declined 3.0% year-over-year, confirming the company is currently in a contractionary phase....
The gross margin stands at 45.5% for the current period, though a prior-year comparison is unavailable for trend analysis. Net margin is deeply negative at -4.7%, indicating the company is not profitable on a trailing twelve-month basis, though this reflects significant non-cash charges from its merger accounting. The balance sheet shows a debt-to-equity ratio of 0.91x, which is elevated but manageable, and a current ratio of 1.06x, suggesting only adequate short-term liquidity. Free cash flow data is not available, preventing a complete assessment of cash generation. Overall, the company's financial health is mixed, with a negative net margin and considerable leverage posing risks, though the current ratio does not signal an immediate liquidity crisis.
- VALUATION — P/E of 92.22x is significantly elevated compared to the sector average of 22x, implying high growth expectations that are not matched by recent performance. - EARNINGS QUALITY — The company has beaten earnings estimates only 2 out of the last 4 quarters, indicating a track record of inconsistent financial performance relative to consensus. - TECHNICALS — RSI, MACD, and moving average data are unavailable for this period; momentum cannot be independently confirmed. - REVENUE DECELERATION — Revenue declined 3.0% year-over-year, confirming the company is currently in a contractionary phase.
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