What The Financials Tell Us About Warner Bros. Discovery Inc. (WBD)


Warner Bros. Discovery Inc. (NASDAQ:WBD) finished Thursday with an addition of $0.56 to close at $9.43, an upside of 6.31 percent. An average of 24,411,361 shares of common stock have been traded in the last five days. There was a gain of $0.39 in the past week. The last 20 days have seen an average of 35,179,656 shares traded, while the 50-day average volume stands at 29,808,662.

WBD stock has decreased by -15.35% in the last month. The company shares reached their 1-month lowest point of $8.82 on 12/22/22. Shares of the company touched a low of $8.82 and a high of $31.55 in 52 weeks. In spite of this, the price is down -70.11% from the 52-week high.

Will You Miss Out On This Growth Stock Boom?

A new megatrend in the fintech market is well underway. Mobile payments are projected to boom into a massive $12 trillion market by 2028. According to Motley Fool this growth stock could "deliver huge returns." Not only in the immediate future but also over the next decade. Especially since the man behind this company is a serial entrepreneur who has been wildly successful over the years.

And this is just one of our 5 Best Growth Stocks To Own For 2023.


Valuation Metrics

Warner Bros. Discovery Inc. (WBD) stock’s beta is 1.38. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.89, the price-to-book (PB) ratio at 0.47, and the price-to-cash flow ratio at 14.24.

Financial Health

The quick ratio of Warner Bros. Discovery Inc. for the three months ended September 29 was 0.90, and the current ratio was 0.90, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.01 and a total debt to equity ratio of 1.03 for the quarter ending September 29. Its gross profit as reported stood at $7.57 billion compared to revenue of $12.19 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Warner Bros. Discovery Inc.’s return on assets was -6.10%.

Earnings Surprise

For the three-month period that ended September 29, Warner Bros. Discovery Inc. had $48.61 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$2.31 billion in the quarter, while revenues of -$3.42 billion were grew 100.0%. The analyst consensus anticipated Warner Bros. Discovery Inc.’s latest quarter earnings to come in at -$0.21 per share, but it turned out to be -$0.95, a -352.40% surprise. For the quarter, EBITDA amounted to $4.89 billion. Shareholders own equity worth $2.43 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Warner Bros. Discovery Inc. (WBD) price momentum. RSI 9-day as of the close on 29 December was 41.52%, suggesting the stock is Neutral, with historical volatility in this time frame at 54.93%.

As of today, WBD’s price is $9.19 +4.31% or $0.39 from its 5-day moving average. WBD is currently trading -17.28% lower than its 20-day SMA and -32.74% lower than its 100-day SMA. However, the stock’s current price level is -26.79% below the SMA50.

The stochastic %K and %D were 11.54% and 10.75%, respectively, and the average true range (ATR) was 0.57. With the 14-day stochastic at 19.74% and the average true range at 0.60, the RSI (14) stands at 40.10%. The stock has reached -0.06 on the 9-day MACD Oscillator while the 14-day reading was at -0.64.

Analyst Ratings

Barrington Research downgraded Warner Bros. Discovery Inc. (NASDAQ: WBD) to a a Mkt perform rating in its most recent analyst report. Previously, the stock was rated as an Outperform. The consensus rating for Warner Bros. Discovery Inc. (WBD) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell WBD, while 13 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 11 others rate it as a “buy”.

What is WBD’s price target for the next 12 months?

Analysts predict a range of price targets between $8.00 and $36.00, with a median target of $18.00. Taking a look at these predictions, the average price target given by analysts for Warner Bros. Discovery Inc. (WBD) stock is $19.83.


Please enter your comment!
Please enter your name here