We Ran A Stock Scan For Earnings Growth And World Wrestling Entertainment (NYSE:WWE) Passed With Ease

For starters, it looks like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it doesn’t currently have a track record of revenue and profitability. But as Peter Lynch said One up on Wall Street, ‘Long shots almost never hurt.’ An insolvent company has yet to prove itself with profitability, and eventually the flow of foreign capital will dry up.

So if this idea of ​​high risk and high reward doesn’t suit you, you may be more interested in profitable, growing companies, such as International Wrestling Entertainment (((NYSE: WWE). While that doesn’t necessarily speak to whether it’s undervalued, the business benefit is enough to warrant some appreciation — especially if it’s growing.

Check out our latest analysis of international wrestling entertainment

Improving the profits of international wrestling entertainment

World Wrestling Entertainment has seen tremendous growth in earnings per share over the past three years. So much so that this three-year growth rate would not be a fair assessment of the company’s future. As a result, we will grow compared to last year. Effectively, World Wrestling Entertainment’s EPS increased from US$1.69 to US$2.97 over the past 12 months. It is not often that a company can achieve 75% growth in a year.

One way to double-check a company’s growth is to see how its revenue, and earnings before interest and tax (EBIT) ratios are changing. World Wrestling Entertainment held EBIT margins steady last year, while revenue grew 25% to US$1.3b. It’s really positive.

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You can take a look at the company’s revenue and earnings growth trend in the chart below. To see the actual numbers, click on the chart.

Income and income history
NYSE: WWE Earnings and Earnings History as of January 29, 2023

You don’t drive with your eyes on the rearview mirror, so you might be more interested in it free of charge The report presents analyst forecasts for World Wrestling Entertainment the future benefit.

Is the global wrestling entertainment industry aligned with all stakeholders?

Seeing insiders owning a large portion of the shares in the issue is often a good sign. Their incentives will be aligned with investors and there is less chance of sudden sales affecting the share price. So we’re happy to report that International Wrestling Entertainment’s Insider has a meaningful share of the business. In fact, they own 43% of the shares, making insiders the most influential group of shareholders. Those who are comfortable with strong insider ownership like this should be happy, because it means that those running the business are really motivated to create shareholder value. And their holdings are extremely valuable at the current share price, totaling US$2.7b. This level of inward investment is nothing to sneeze at.

This means that internal investors are investing in the business, but shareholders may be wondering if the remuneration policies are in their favor. Our quick analysis of CEO salaries would seem to suggest that they are. The average total compensation for CEOs of companies like World Wrestling Entertainment, with a market cap between US$4.0b and US$12b, is about US$8.0m.

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The World Wrestling Entertainment CEO took home a total compensation package worth $5.7 million through December 2021. That seems pretty reasonable, especially given the average size for companies of the same size. While the level of CEO compensation should not be the biggest factor in how the company is viewed, low pay is a positive, as it suggests that the board has the interests of shareholders in mind. Generally, it can be argued that a reasonable salary level confirms good decision making.

Is World Wrestling Entertainment Worth Watching?

World Wrestling Entertainment’s earnings per share are up, with growth rates sky-high. The downside is that the insiders have a mountain of stock, and the CEO’s salary is very reasonable. Strong EPS growth suggests the business is humming along. Big promotions can lead to big wins, so the writing on the wall tells us that World Wrestling Entertainment is worth considering. You should always think about the risks. In the case, we met 1 warning sign for international wrestling entertainment You should be aware.

The beauty of investing is that you can invest in almost any company you want. But if you prefer to focus on stocks that have shown insider buying, here it is List of companies with insider purchases in the last three months.

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Please note that the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

What are the risks and opportunities? International Wrestling Entertainment?

World Wrestling Entertainment, Inc., is an integrated media and entertainment company, involved in the sports entertainment business in North America, Europe, the Middle East, Africa, Asia Pacific, and Latin America.

See full analysis


  • Trading at 45.3% below our fair value estimate

  • Revenues will grow 21.03% annually

  • Revenues grew 69.7% over the previous year

the dangers

  • High levels of non-cash income

See all risks and rewards

This article by Simple Wall Saint is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not recommend buying or selling any stocks, and does not take into account your goals, or your financial situation. We aim to bring you long-term focus analysis driven by fundamental data. Note that our analysis may not factor in recent price-sensitive company advertising or quality materials. Simply put, Wall St. has no position in the stock mentioned.


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