Weight Watchers Stock Analysis, Valuation (NYSE:WTW)

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$71.91 $5.48 (7.08%) WTW stock closing price Aug 15, 2018 (Closing)

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 2.8/5

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?

  • The TTM operating margin was good at 21.58 for Weight Watchers.
  • Net margins stood at a healthy 13.9% (average) for Weight Watchers in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.8798 times the net income.
  • Weight Watchers's return on invested capital of 27.4 is good.
  • The company has a healthy free cash flow margin of 16.1.

Should you sell WTW stock?

  • Revenue declined at a CAGR of -5.2 over the last 5 years.
  • The WTW stock currently trades at a PE of 33.1, which is expensive, compared to the sector average of 21.4.
  • The company is trading at a price to sales multiple of 3.5, which is higher in comparison to the Consumer Discretionary sector average of 1.6, making WTW stock expensive.

Comments on this video and Weight Watchers stock

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.