Weight Watchers Stock Analysis, Valuation (NYSE:WTW)

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$68.7 $1.15 (1.7%) WTW stock closing price Apr 18, 2018 (Closing)
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Weight Watchers
Updated on : Apr 18, 2018
previous close
WTW 68.7 (0%)
S&P 500 2708.6 (0%)
Closing Price On: Apr 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Consumer Discretionary-Misc
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-6.5%
Operating Profit
Operating Margin:
20.5%
Sector Average:
10.4%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$37.5M
Net Income:
$63M
PROS      CONS
Operating Margins
ROIC
Long Term Growth
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
WTW PS :
3.4
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
24.4%
Free Cash Flow Margin:
8.9%
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Weight Watchers Stock Analysis

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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.

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.