Weight Watchers Stock Analysis, Valuation (NYSE:WTW)
Weight Watchers Stock Analysis
Investors can watch the Amigobulls Weight Watchers stock analysis video here. Our analyst opinion covering the buy and sell arguments for WTW stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Weight Watchers International, Inc. Stock Rating 2.6/5
We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for WTW stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Weight Watchers valuation analysis. Based on a company's historical fundamentals we arrive at Weight Watchers stock rating which is indicative of the company's financial performance.
Should you buy WTW stock?
- Weight Watchers had a healthy average operating margin of 20.5% over the last 4 quarters.
- Weight Watchers generates a high return on invested capital of 24.4%.
Should you sell WTW stock?
- Sales declined by -6.5% annually over the last 5 years.
- Cash flow from operations is low at 0.6 times the net income.
- Trading at a PE ratio of 40.9, WTW stock is overvalued in comparison to industry average multiple of 22.
- WTW stock is trading at a PS multiple of 3.4, which is a negative when compared to the Consumer Discretionary-Misc industry average multiple of 1.6.
Amigobulls Weight Watchers stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of WTW stock. Company's fundamentals remain one of the key driver of WTW stock and helps investors in making good buy and sell decision.
While doing a study of the company financials, Weight Watchers revenue growth and profit or net income are two main metrics which help in identifying whether WTW stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Weight Watchers stock.