Is Warner Bros Stock a Good Investment?
Warner Bros Investment Advice | WBD |
- Examine Warner Bros' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Warner Bros' leadership team and their track record. Good management can help Warner Bros navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Interactive Home Entertainment space and any emerging trends that could impact Warner Bros' business and its evolving consumer preferences.
- Compare Warner Bros' performance and market position to its competitors. Analyze how Warner Bros is positioned in terms of product offerings, innovation, and market share.
- Check if Warner Bros pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Warner Bros' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Warner Bros Discovery stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Warner Bros Discovery is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Warner Bros Stock
Researching Warner Bros' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 64.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 0.71. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Warner Bros Discovery has Price/Earnings To Growth (PEG) ratio of 2.79. The entity recorded a loss per share of 4.58. The firm had not issued any dividends in recent years. Warner Bros had 1957:1000 split on the 7th of August 2014.
To determine if Warner Bros is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Warner Bros' research are outlined below:
| Warner Bros had very high historical volatility over the last 90 days | |
| Warner Bros has high likelihood to experience some financial distress in the next 2 years | |
| Warner Bros Discovery has 47.28 B in debt with debt to equity (D/E) ratio of 1.07, which is OK given its current industry classification. Warner Bros Discovery has a current ratio of 0.84, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Warner to invest in growth at high rates of return. | |
| The entity reported the last year's revenue of 41.32 B. Reported Net Loss for the year was (3.13 B) with profit before taxes, overhead, and interest of 13.43 B. | |
| About 64.0% of Warner Bros outstanding shares are owned by institutional investors | |
| Latest headline from benzinga.com: Warner Bros. Discoverys Options A Look at What the Big Money is Thinking |
Warner Bros Quarterly Liabilities And Stockholders Equity |
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Warner Bros uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Warner Bros Discovery. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Warner Bros' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 3rd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Warner Bros' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Warner Bros' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2008-05-08 | 2008-03-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2007-05-09 | 2007-03-31 | 0.03 | 0.04 | 0.01 | 33 | ||
2006-05-10 | 2006-03-31 | 0.03 | 0.02 | -0.01 | 33 | ||
2006-03-23 | 2005-12-31 | 0.03 | 0.02 | -0.01 | 33 | ||
2009-05-04 | 2009-03-31 | 0.12 | 0.14 | 0.02 | 16 | ||
2009-02-25 | 2008-12-31 | 0.15 | 0.13 | -0.02 | 13 | ||
2011-11-01 | 2011-09-30 | 0.27 | 0.3 | 0.03 | 11 | ||
2010-08-03 | 2010-06-30 | 0.22 | 0.25 | 0.03 | 13 |
Know Warner Bros' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Warner Bros is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Warner Bros Discovery backward and forwards among themselves. Warner Bros' institutional investor refers to the entity that pools money to purchase Warner Bros' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Edgepoint Investment Group, Inc. | 2024-09-30 | 21.4 M | Hotchkis & Wiley Capital Management Llc | 2024-09-30 | 20.9 M | Northern Trust Corp | 2024-09-30 | 20.3 M | Contrarius Investment Management Ltd | 2024-09-30 | 19.1 M | Slate Path Capital Lp | 2024-09-30 | 17.4 M | Jpmorgan Chase & Co | 2024-06-30 | 17 M | Charles Schwab Investment Management Inc | 2024-09-30 | 15.7 M | Legal & General Group Plc | 2024-06-30 | 15 M | Bank Of New York Mellon Corp | 2024-06-30 | 14.2 M | Vanguard Group Inc | 2024-09-30 | 251 M | Blackrock Inc | 2024-06-30 | 165.2 M |
Warner Bros' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 24.8 B.Market Cap |
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Warner Bros' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.06) | (0.06) | |
| Return On Capital Employed | (0.01) | (0.01) | |
| Return On Assets | (0.03) | (0.02) | |
| Return On Equity | (0.07) | (0.07) |
Determining Warner Bros' profitability involves analyzing its financial statements and using various financial metrics to determine if Warner Bros is a good buy. For example, gross profit margin measures Warner Bros' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Warner Bros' profitability and make more informed investment decisions.
Please note, the presentation of Warner Bros' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Warner Bros' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Warner Bros' management manipulating its earnings.
Evaluate Warner Bros' management efficiency
The current year's Return On Tangible Assets is expected to grow to -0.06. The current year's Return On Capital Employed is expected to grow to -0.01. At present, Warner Bros' Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Non Currrent Assets Other is expected to grow to about 19.7 B, whereas Intangibles To Total Assets are forecasted to decline to 0.48. Warner Bros' management efficiency ratios could be used to measure how well Warner Bros manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 19.08 | 11.12 | |
| Tangible Book Value Per Share | (10.99) | (11.54) | |
| Enterprise Value Over EBITDA | 11.16 | 10.60 | |
| Price Book Value Ratio | 0.61 | 1.22 | |
| Enterprise Value Multiple | 11.16 | 10.60 | |
| Price Fair Value | 0.61 | 1.22 | |
| Enterprise Value | 10.8 B | 11.4 B |
Warner Bros' management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Beta 1.483 |
Basic technical analysis of Warner Stock
As of the 25th of November, Warner Bros maintains the Downside Deviation of 2.48, mean deviation of 2.35, and Market Risk Adjusted Performance of 0.3522. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Warner Bros Discovery, as well as the relationship between them. Please check out Warner Bros Discovery jensen alpha, potential upside, as well as the relationship between the Potential Upside and skewness to decide if Warner Bros Discovery is priced fairly, providing market reflects its latest price of 10.11 per share. Given that Warner Bros Discovery has jensen alpha of 0.3225, we strongly advise you to confirm Warner Bros Discovery's prevalent market performance to make sure the company can sustain itself at a future point.Warner Bros' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Warner Bros insiders, such as employees or executives, is commonly permitted as long as it does not rely on Warner Bros' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Warner Bros insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
David Zaslav over a year ago Acquisition by David Zaslav of 1270188 shares of Warner Bros subject to Rule 16b-3 | ||
Zeiler Gerhard over a year ago Acquisition by Zeiler Gerhard of 96031 shares of Warner Bros subject to Rule 16b-3 | ||
Zeiler Gerhard over a year ago Payment of 35506 shares by Zeiler Gerhard of Warner Bros subject to Rule 16b-3 |
Warner Bros' Outstanding Corporate Bonds
Warner Bros issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Warner Bros Discovery uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Warner bonds can be classified according to their maturity, which is the date when Warner Bros Discovery has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View |
Understand Warner Bros' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Warner Bros' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1227 | |||
| Market Risk Adjusted Performance | 0.3522 | |||
| Mean Deviation | 2.35 | |||
| Semi Deviation | 2.12 | |||
| Downside Deviation | 2.48 | |||
| Coefficient Of Variation | 667.33 | |||
| Standard Deviation | 3.39 | |||
| Variance | 11.51 | |||
| Information Ratio | 0.1113 | |||
| Jensen Alpha | 0.3225 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | 0.1521 | |||
| Treynor Ratio | 0.3422 | |||
| Maximum Drawdown | 18.3 | |||
| Value At Risk | (3.45) | |||
| Potential Upside | 7.33 | |||
| Downside Variance | 6.16 | |||
| Semi Variance | 4.49 | |||
| Expected Short fall | (2.83) | |||
| Skewness | 1.28 | |||
| Kurtosis | 2.85 |
| Risk Adjusted Performance | 0.1227 | |||
| Market Risk Adjusted Performance | 0.3522 | |||
| Mean Deviation | 2.35 | |||
| Semi Deviation | 2.12 | |||
| Downside Deviation | 2.48 | |||
| Coefficient Of Variation | 667.33 | |||
| Standard Deviation | 3.39 | |||
| Variance | 11.51 | |||
| Information Ratio | 0.1113 | |||
| Jensen Alpha | 0.3225 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | 0.1521 | |||
| Treynor Ratio | 0.3422 | |||
| Maximum Drawdown | 18.3 | |||
| Value At Risk | (3.45) | |||
| Potential Upside | 7.33 | |||
| Downside Variance | 6.16 | |||
| Semi Variance | 4.49 | |||
| Expected Short fall | (2.83) | |||
| Skewness | 1.28 | |||
| Kurtosis | 2.85 |
Consider Warner Bros' intraday indicators
Warner Bros intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Warner Bros stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Warner Bros Corporate Filings
F4 | 12th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 8th of November 2024 Other Reports | ViewVerify | |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 2nd of October 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Warner Stock media impact
Far too much social signal, news, headlines, and media speculation about Warner Bros that are available to investors today. That information is available publicly through Warner media outlets and privately through word of mouth or via Warner internal channels. However, regardless of the origin, that massive amount of Warner data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Warner Bros news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Warner Bros relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Warner Bros' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Warner Bros alpha.
Warner Bros Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Warner Bros can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Warner Bros Discovery Historical Investor Sentiment
Investor biases related to Warner Bros' public news can be used to forecast risks associated with an investment in Warner. The trend in average sentiment can be used to explain how an investor holding Warner can time the market purely based on public headlines and social activities around Warner Bros Discovery. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Warner Bros' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Warner Bros and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Warner Bros news discussions. The higher the estimate score, the more favorable the investor's outlook on Warner Bros.
Warner Bros Corporate Management
| Jennifer Remling | Chief Officer | Profile | |
| Robert Gibbs | Chief Officer | Profile | |
| JeanBriac Perrette | Pres International | Profile | |
| Bruce Campbell | Distribution Devel | Profile |
Already Invested in Warner Bros Discovery?
The danger of trading Warner Bros Discovery is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Warner Bros is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Warner Bros. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Warner Bros Discovery is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Warner Bros Discovery is a strong investment it is important to analyze Warner Bros' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Warner Bros' future performance. For an informed investment choice regarding Warner Stock, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Warner Bros Discovery. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Is Interactive Home Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Warner Bros. If investors know Warner will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Warner Bros listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 2.267 | Earnings Share (4.58) | Revenue Per Share 16.182 | Quarterly Revenue Growth (0.04) | Return On Assets (0) |
The market value of Warner Bros Discovery is measured differently than its book value, which is the value of Warner that is recorded on the company's balance sheet. Investors also form their own opinion of Warner Bros' value that differs from its market value or its book value, called intrinsic value, which is Warner Bros' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Warner Bros' market value can be influenced by many factors that don't directly affect Warner Bros' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Warner Bros' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Warner Bros is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Warner Bros' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.