WW International, headquartered in New York City, offers weight management services through programs, an app, and subscriptions, employing 4,850 staff since its IPO in 2001. Their science-based approach supports individual weight goals and includes WW-branded products like bars and cookbooks.
Based on our analysis, WW International has received a 5 out of 5 stars undervalued rating from Cashu due to several concerning financial ratios compared to its sector.
The Price-to-Book (PB) Ratio for WW International stands at 22.28, significantly higher than the sector average of 2.04. This indicates that the stock may be overvalued relative to its book value, suggesting investors are paying a premium for a company that has not demonstrated strong financial health.
Additionally, the company's Net Profit Margin is a striking -43.99, whereas the sector average is a mere 0.25. This negative margin suggests that WW International is struggling to generate profits from its revenues, indicating operational inefficiencies that could deter potential investors.
On the other hand, the Return on Equity (ROE) is exceptionally high at 93.23 compared to the sector's 1.98. This figure could imply that when WW International does generate profits, it is doing so effectively with the equity it has. However, the negative context of other metrics raises questions about sustainability.
The company also shows a Dividend Yield of 0.00, unlike the sector average of 1.48, signaling that WW International is not returning profits to shareholders, which could be a red flag for income-focused investors. Finally, the Return on Assets Ratio is -62.82 compared to the sector's 0.12, indicating that the company is not effectively utilizing its assets to generate earnings.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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