Warner Bros. Discovery, Inc.

Telecommunications
Cable & Other Pay Television Services
www.wbd.com

Earnings Score
Moat Score
Safety Score

Market Cap $26.11B
PE -2
Debt $43.28B
Cash $3.49B
EV $65.89B
FCF $5.31B

Earnings

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Sales & Net Margins

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Earnings	-$11.24B
EBIT	-$10.38B
ROE	-31%
ROA	-10%
FCF	$5.31B
Equity	$36.06B
Growth Stability	-578%
PE	-2.32
PEG	2.3
PB	0.72
P/FCF	4.92
P/S	0.66
Price/Cash	0.13
Debt/Equity	1.2
Debt/FCF	8.15
Net Margins	-37%
Gross Margins	41%
Op. Margins	-26%
Earnings CAGR	1%
Sales Growth YoY	-4%
Sales Growth QoQ	-1%
Sales CAGR	27%
FCF CAGR	17%
Equity CAGR	29%
Earnings Stability	0.02
Earnings Growth YoY	-134%
Earnings Growth QoQ	-101%

Earnings CAGR 5Y	-1%
Sales CAGR 5Y	47%
FCF CAGR 5Y	20%
Equity CAGR 5Y	47%
Earnings CAGR 3Y	55%
Sales CAGR 3Y	55%
FCF CAGR 3Y	60%
Equity CAGR 3Y	29%
Market Cap	$26.11B
Revenue	$39.58B
Assets	$106.33B
Total Debt	$43.28B
Cash	$3.49B
Shares Outstanding	2.45B
EV	65.89B
Earnings Score	6%
Moat Score	3%
Safety Score	46%
Final Score	18%
Working Capital	-3.19B
Current Ratio	0.8
Gross Profit	$16.24B
Shares Growth 3y	25%
Equity Growth QoQ	2%
Equity Growth YoY	-21%

Assets & ROA

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Stockholders Equity & ROE

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Warner Bros. Discovery, the result of combining two large media firms, is one of the largest media firms in the world with tremendous scale and reach. The new company owns some of the biggest global networks including HBO, Discovery, CNN, and TLC and well-known franchises like Superman, Rick and Morty, and Game of Thrones. The firm's content production studios include Warner Bros., HBO, Discovery Studios, DC Films, and Cartoon Network Studios. The company operates two major streaming services, HBO Max and Discovery+.

SEC Filings

Direct access to Warner Bros. Discovery, Inc. (WBD) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Warner Bros. Discovery, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Warner Bros. Discovery, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 2%

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Warner Bros. Discovery, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Warner Bros. Discovery, Inc..

Years

Calculation mode

= $176B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$5.3B	$6.2B	$7.3B	$8.5B	$10B	$12B	$14B	$16B	$19B	$22B	$26B	$258B
DCF		$5.7B	$6B	$6.4B	$6.8B	$7.3B	$7.7B	$8.2B	$8.8B	$9.3B	$9.9B	$99B
Value	$176B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	14%	13%	14%	-5%	5%	17%	10%	7%	-22%	-8%	-37%
ROA	-	13%	13%	3%	6%	9%	7%	6%	-5%	-1%	-10%
ROE	-	15%	18%	-7%	5%	16%	9%	7%	-15%	-7%	-31%

Bad Net Margins (-37.01%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	6.75	6.25	10	7.83	5.19	6.92	6.4	14.97	7.42	8.15
Debt over Equity	1.48	1.45	1.56	3.24	1.88	1.4	1.35	1.19	1.03	0.99	1.2
Growth Stability	-	-	-	-38%	100%	100%	100%	79%	-578%	-	-578%

Bad Debt/FCF ratio (8.15)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Neutral Debt/Equity ratio (1.2)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-578%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	2%	2%	6%	54%	6%	-4%	14%	177%	22%	47%
Earnings YoY growth	-	-10%	13%	-137%	-257%	249%	-41%	-16%	-914%	-58%	-1%
Equity YoY growth	-	-3%	-5%	-11%	119%	14%	4%	9%	271%	-4%	47%
FCF YoY growth	-	-2%	10%	16%	63%	28%	-25%	4%	37%	86%	20%