Weight Watchers Stock Analysis, Valuation (NYSE:WTW)
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 2.7/5
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 21.58 over the last 4 quarters.
- Net margins came in at average 13.9% for Weight Watchers over the last twelve months.
- The company has an operating cash flow which is 1.8798 times the net income. We see this as a positive signal.
- Weight Watchers has an attractive ROIC (Return on Invested Capital) of 27.4
- Weight Watchers has a healthy FCF (Free Cash Flow) margin of 16.1.
Should you sell WTW stock?
- Sales declined by -5.2 annually over the last 5 years.
- WTW stock is trading at a PE ratio of 47.1, which is worse than the sector average multiple of 21.9.
- WTW stock is trading at a PS multiple of 4.4, which is a negative when compared to the Consumer Discretionary sector 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.