Wolverine World Wide, Inc. (WWW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

FIGS, Inc.

Levi Strauss & Co.

Hanesbrands, Inc.

Wolverine World Wide, Inc.

Guess?, Inc.

Canada Goose Holdings, Inc.

G-III Apparel Group Ltd.

Kontoor Brands, Inc.

Steven Madden Ltd.

Oxford Industries, Inc.

Under Armour, Inc.

Why is Wolverine World Wide, Inc. ?

Weak Long Term Fundamental Strength with a 7.89% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 8.32 times
The company has been able to generate a Return on Capital Employed (avg) of 7.96% signifying low profitability per unit of total capital (equity and debt)

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 151.4 MM
ROCE(HY) Highest at 27.52%
INTEREST COVERAGE RATIO(Q) Highest at 564.71

With ROCE of 9.80%, it has a fair valuation with a 2.73 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.46%, its profits have fallen by -45.6%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.46% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wolverine World Wide, Inc. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Wolverine World Wide, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wolverine World Wide, Inc.

24.07%

0.66

66.56%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.40%

EBIT Growth (5y)

18.05%

EBIT to Interest (avg)

2.11

Debt to EBITDA (avg)

8.32

Net Debt to Equity (avg)

2.06

Sales to Capital Employed (avg)

1.72

Tax Ratio

13.13%

Dividend Payout Ratio

69.11%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

7.96%

ROE (avg)

32.83%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.66

EV to EBIT

16.46

EV to EBITDA

13.42

EV to Capital Employed

2.45

EV to Sales

1.26

PEG Ratio

0.22

Dividend Yield

1.84%

ROCE (Latest)

14.85%

ROE (Latest)

24.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

18What is working for the Company

NET PROFIT(HY)

At USD 50.3 MM has Grown at 223.21%

ROCE(HY)

Highest at 25.57%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.45 times

INTEREST COVERAGE RATIO(Q)

Highest at 591.36

RAW MATERIAL COST(Y)

Fallen by -6.21% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 182.69 %

OPERATING PROFIT MARGIN(Q)

Highest at 10.18 %

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 72.3 MM

CASH AND EQV(HY)

Lowest at USD 274.9 MM

Here's what is working for Wolverine World Wide, Inc.

Net Profit

At USD 50.3 MM has Grown at 223.21%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (USD MM)

Interest Coverage Ratio

Highest at 591.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 3.45 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Profit Margin

Highest at 10.18 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debt-Equity Ratio

Lowest at 182.69 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.21% (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 Wolverine World Wide, Inc.

Operating Cash Flow

Lowest at USD 72.3 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 274.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents