10Y annualized return is
negative
at -12.4% per year
WBD has met or exceeded earnings expectations in
few
recent quarters (3/10)
Low Price-to-Sales Ratio
Low Price-to-Book Ratio
Strong Gross Profit Margin
Positive Free Cash Flow per Share
Low Debt Levels
High Cash per Share
📈 Strong Subscriber Growth
🛡️ Diverse Content Portfolio
💪 Restructured for Clarity
🔒 Secure Linear Business
🌍 International Expansion Potential
🚀 Innovations in Content Strategy
📊 Positive Financial Outlook
Negative Price-to-Earnings Ratio
High EV-to-EBITDA Ratio
Negative Net Profit Margin
Negative Operating Profit Margin
Current and Quick Ratios Below 1
Negative Interest Coverage Ratio
📉 Linear TV Challenges
📉 ARPU Pressure
⚠️ Uncertain Ad Market
Overall, Warner Bros. Discovery demonstrates strong business quality through significant subscriber growth, a diverse content portfolio, and strategic restructuring. Future prospects appear promising with international expansion plans and a focus on innovation, despite challenges in the linear TV segment and pressures on ARPU.
Analysis Date: February 27, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Warner Bros. Discovery, Inc. is a big media and entertainment company that creates movies and TV shows. They have three main areas: they make films and TV programs, run TV networks, and offer streaming services where you can watch shows online. Some of their popular brands include HBO, CNN, and famous characters like Batman and Harry Potter. Basically, they help bring stories and entertainment to people through movies, TV, and online platforms.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
WBD: No Graham value data available
Margin of Safety
Gap between intrinsic value and market price
WBD: No margin of safety data available
Graham Criteria Checklist
Benjamin Graham's value investing checklist for WBD
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (-1.75)
P/B ratio ≤ 1.5 (0.58)
Current ratio ≥ 2.0 (0.89x)
Long-term debt < Net current assets (0.00x)
Margin of safety
WBD does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The gross profit margin of 41.58% indicates that WBD retains a good portion of revenue as profit after covering the cost of goods sold.
The free cash flow per share of 1.807 indicates that WBD is generating cash after accounting for capital expenditures, which is crucial for operations and growth.
The net profit margin of -28.72% reflects that the company is incurring significant losses relative to its total revenue.
The operating profit margin of -25.51% further emphasizes operational inefficiencies and the inability to convert sales into operational profits.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
-30.60%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
41.58%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
-28.72%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
The debt-to-equity ratio of 0.081 indicates that WBD has a low level of debt compared to its equity, suggesting a conservative capital structure.
A cash per share value of 2.168 indicates that WBD has sufficient liquidity to meet short-term obligations and invest in growth.
Both the current ratio (0.890) and quick ratio (0.890) being below 1 indicate potential liquidity issues, as the company may struggle to cover its short-term liabilities.
An interest coverage ratio of -4.974 indicates that the company is not generating enough earnings to cover its interest expenses, raising concerns about financial stability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.08x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.89x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
WBD's direct-to-consumer business ended 2024 with approximately 117 million subscribers across over 70 countries, showcasing a growth of about 6.5 million subscribers in Q4 alone. This reflects a substantial increase of nearly 20 million subscribers in less than a year, indicating strong demand for their streaming service, Max.
WBD's content strategy includes iconic storytelling from Warner Bros. and HBO, alongside local content and sports. This unique combination is expected to enhance consumer interest and distributor partnerships globally, setting WBD apart from competitors.
WBD implemented a corporate restructuring effective January 1, 2024, aimed at providing better visibility into the strengths of their streaming and studio businesses, thus enhancing strategic flexibility and potential shareholder value.
WBD successfully renewed multi-year agreements with major pay TV providers, ensuring a stable revenue base for their linear business, which will help mitigate headwinds in the traditional TV landscape.
Despite securing long-term agreements, the linear television segment continues to face challenges, including pressures from declining viewership and weaker advertising sales, particularly from CNN during the recent election cycle.
WBD plans to launch Max in key markets like the U.K., Italy, Germany, and Australia, with a target of reaching at least 150 million subscribers globally by the end of 2026, indicating significant growth potential in untapped international markets.
WBD is focused on enhancing its content strategy by leveraging successful franchises and exploring new distribution models for sports and news, indicating a commitment to innovation in its offerings.
WBD is projecting a nearly doubling of its direct-to-consumer EBITDA in 2025, with expectations for significant improvement in studio EBITDA as they recover from previous lows and manage their franchises more effectively.
As WBD expands internationally and offers lower-priced bundles, there may be a deterioration in ARPU in the near term, which could impact revenue growth until normalized levels are achieved.
The advertising market remains volatile, with expectations of weaker ad sales impacting overall revenue, particularly in the linear segment, which could hinder future financial performance.