Warner Bros. Discovery, Inc. (DISCA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Walt Disney Co.

Comcast Corp.

Warner Bros. Discovery, Inc.

Liberty Global Plc

Cable One, Inc.

Charter Communications, Inc.

iHeartMedia, Inc.

AMC Networks, Inc.

DISH Network Corp.

Why is Warner Bros. Discovery, Inc. ?

Poor Management Efficiency with a low ROCE of 3.93%

The company has been able to generate a Return on Capital Employed (avg) of 3.93% signifying low profitability per unit of total capital (equity and debt)

Strong Long Term Fundamental Strength with a 29.01% CAGR growth in Net Sales

Healthy long term growth as Net Sales has grown by an annual rate of 29.01%

The company has declared Positive results for the last 3 consecutive quarters

NET PROFIT(HY) Higher at USD -472.49 MM
ROCE(HY) Highest at 2.18%
RAW MATERIAL COST(Y) Fallen by -36.45% (YoY)

With ROE of -3.47%, it has a risky valuation with a 0.72 Price to Book Value

Over the past year, while the stock has generated a return of 120.77%, its profits have risen by 47.1%

High Institutional Holdings at 75.69%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.92% over the previous quarter.

Market Beating performance in long term as well as near term

Along with generating 120.77% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Warner Bros. Discovery, Inc. should be less than 10%
Overall Portfolio exposure to Cables - Electricals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cables - Electricals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Warner Bros. Discovery, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Warner Bros. Discovery, Inc.

132.61%

2.89

63.27%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.01%

EBIT Growth (5y)

-17.30%

EBIT to Interest (avg)

1.04

Debt to EBITDA (avg)

4.86

Net Debt to Equity (avg)

0.99

Sales to Capital Employed (avg)

0.50

Tax Ratio

0.25%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

75.69%

ROCE (avg)

3.93%

ROE (avg)

4.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.72

EV to EBIT

102.34

EV to EBITDA

7.95

EV to Capital Employed

0.86

EV to Sales

1.51

PEG Ratio

Dividend Yield

ROCE (Latest)

0.84%

ROE (Latest)

-3.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

NET PROFIT(HY)

Higher at USD -472.49 MM

ROCE(HY)

Highest at 2.18%

RAW MATERIAL COST(Y)

Fallen by -36.45% (YoY

CASH AND EQV(HY)

Highest at USD 8,939 MM

DEBT-EQUITY RATIO (HY)

Lowest at 82.4 %

DEBTORS TURNOVER RATIO(HY)

Highest at 6.65 times

EPS(Q)

Highest at USD 0.63

-1What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -367 MM has Fallen at -22.23%

Here's what is working for Warner Bros. Discovery, Inc.

Net Profit

Higher at USD -472.49 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (USD MM)

Net Profit

At USD -472.49 MM has Grown at 74.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.63

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 8,939 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 82.4 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 6.65 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -36.45% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Warner Bros. Discovery, Inc.

Pre-Tax Profit

At USD -367 MM has Fallen at -22.23%

over average net sales of the previous four periods of USD -300.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)