Warner Bros (WBD) AI Stock Analysis

• Market Cap: $57.07B
• Dividend Yield: N/A
• Average Volume (3M): 33.29M
• Price to Earnings (P/E): 121.2
• Beta (1Y): 1.28
• Revenue Growth: -4.29%
• EPS Growth: N/A
• Country: US
• Employees: 35,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.06
• Shares Outstanding: 2,477,974,600
• 10 Day Avg. Volume: 36,991,468
• 30 Day Avg. Volume: 33,292,833
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 5.85
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 2.09
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 4.05
• 1Y Price Target: $22.08
• Price Target Upside: -2.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 0.37
• Revenue Forecast (FY): $37.20B

• Rating: 70 Outperform
• Price Target: $25.00 ▲(9.94% Upside)

Warner Bros. Discovery's overall stock score is driven by strong technical indicators and positive earnings call sentiment, highlighting growth in streaming and box office leadership. However, the high P/E ratio and challenges in revenue growth and ARPU pressure weigh down the score.

Positive Factors

Streaming Subscriber Growth

The significant growth in streaming subscribers indicates strong market demand and enhances Warner Bros.'s competitive position in the digital content space.

Box Office Leadership

Leading the global box office reinforces Warner Bros.'s strong brand and content appeal, which is crucial for sustained revenue generation and market dominance.

Debt Reduction

Reducing debt levels enhances financial flexibility and reduces risk, positioning the company better for future investments and growth opportunities.

Negative Factors

Declining Revenue Growth

Declining revenue growth poses a risk to long-term financial health, potentially impacting the company's ability to invest in new projects and maintain competitive advantage.

Linear Television Challenges

Challenges in the linear TV segment could lead to declining revenues in this area, affecting overall profitability and necessitating strategic adjustments.

ARPU Pressure

ARPU pressure can impact revenue per user, challenging the profitability of streaming services and requiring strategic pricing adjustments.

Warner Bros Business Overview & Revenue Model

Company Description

Warner Bros. Discovery (WBD) is a leading global media and entertainment company that operates through various segments including film, television, and streaming services. Formed from the merger of WarnerMedia and Discovery, Inc., WBD encompasses a vast library of intellectual properties, including iconic franchises like Harry Potter, DC Comics, and various reality TV shows. The company produces and distributes films, television programs, and digital content across multiple platforms, aiming to engage audiences worldwide with diverse storytelling and entertainment experiences.

How the Company Makes Money

Warner Bros. Discovery generates revenue through multiple streams, primarily from content creation and distribution. Key revenue sources include theatrical releases, television licensing, subscription fees from its streaming services such as HBO Max, and advertising revenue from its cable networks and digital platforms. The company also earns income from merchandise sales related to its franchises, as well as from partnerships with other media entities. Significant partnerships, such as those with cable providers and international distributors, enhance its reach and profitability. Additionally, the diversification into non-scripted content and reality TV has proven to be a lucrative avenue, capitalizing on changing viewer preferences.

Warner Bros Financial Statement Overview

Summary

Warner Bros presents a mixed financial picture with positive profitability margins and strong cash flow metrics. However, challenges remain with declining revenue growth and low return on equity. The balance sheet is stable, but improving profitability and growth will be crucial for future success.

Income Statement

Warner Bros shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth at -1.50%, which is concerning. However, the company has managed to maintain a positive net profit margin of 1.99% and a gross profit margin of 43.27%, indicating some level of profitability. The EBIT and EBITDA margins are also positive at 8.85% and 59.74%, respectively, showing operational efficiency. Despite these strengths, the negative revenue growth trend and past losses highlight potential risks.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.96, which is reasonable for the industry. The return on equity (ROE) is low at 2.21%, indicating limited profitability from equity. The equity ratio stands at 35.83%, suggesting a balanced capital structure. While the company has managed to reduce its debt levels, the low ROE and past negative equity returns are areas of concern.

Cash Flow

Warner Bros demonstrates strong cash flow management with a free cash flow to net income ratio of 79.74% and a positive free cash flow growth rate of 12.3% in the TTM period. The operating cash flow to net income ratio is 39.10%, indicating good cash generation relative to net income. These metrics suggest robust cash flow health, although the company should aim to improve its operating cash flow coverage ratio for better financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.86B	39.32B	41.32B	33.82B	12.19B	10.67B
Gross Profit	16.67B	16.35B	16.80B	13.38B	7.57B	6.81B
EBITDA	19.55B	11.61B	22.37B	14.17B	7.15B	6.69B
Net Income	485.00M	-11.31B	-3.13B	-7.37B	1.01B	1.22B
Balance Sheet
Total Assets	100.52B	104.56B	122.76B	134.00B	34.43B	34.09B
Cash, Cash Equivalents and Short-Term Investments	4.33B	5.31B	3.78B	3.73B	3.90B	2.09B
Total Debt	33.75B	39.51B	43.67B	49.00B	14.76B	15.40B
Total Liabilities	63.21B	69.62B	76.28B	85.33B	21.03B	21.70B
Stockholders Equity	36.02B	34.04B	45.23B	47.09B	11.60B	10.46B
Cash Flow
Free Cash Flow	4.07B	4.43B	6.16B	3.32B	2.42B	2.34B
Operating Cash Flow	5.00B	5.38B	7.48B	4.30B	2.80B	2.74B
Investing Cash Flow	-31.00M	-349.00M	-1.26B	3.52B	-56.00M	-703.00M
Financing Cash Flow	-2.42B	-3.75B	-5.84B	-7.74B	-853.00M	-1.55B

Warner Bros Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WBD, the sentiment is Positive. The current price of 22.74 is above the 20-day moving average (MA) of 22.15, above the 50-day MA of 19.96, and above the 200-day MA of 12.92, indicating a bullish trend. The MACD of 1.07 indicates Positive momentum. The RSI at 70.50 is Negative, neither overbought nor oversold. The STOCH value of 77.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WBD.

Warner Bros Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOXA	77 Outperform	$27.28B	14.59	17.33%	0.85%	14.91%	9.30%
DIS	76 Outperform	$188.88B	15.45	11.78%	0.95%	3.61%	152.34%
FOX	76 Outperform	$27.28B	13.16	17.33%	0.95%	14.91%	9.30%
WBD	70 Outperform	$57.07B	121.22	1.36%	―	-4.29%	―
NFLX	69 Neutral	$47.13B	46.08	42.86%	―	15.49%	35.54%
NWSA	67 Neutral	$15.32B	32.57	5.59%	0.79%	-16.36%	29.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Warner Bros Corporate Events

Warner Bros. Discovery Reports Q3 2025 Financial Results

Warner Bros. Discovery, Inc. is a global media and entertainment company that creates and distributes a diverse portfolio of branded content across television, film, streaming, and gaming, with iconic brands like HBO, CNN, and Warner Bros.

Warner Bros. Discovery Shines in 2025 Earnings Call

Warner Bros. Discovery’s recent earnings call paints a picture of a company that is thriving in several key areas, despite some ongoing challenges. The sentiment expressed during the call was largely positive, highlighting the company’s leadership in the global box office and impressive growth in streaming subscribers. The successful Emmy season further underscores the company’s strong position. However, challenges remain, particularly in the linear television segment and with ARPU pressures in streaming, due to strategic adjustments. Overall, Warner Bros. Discovery’s strategic initiatives are showing promising results, positioning the company well for future growth.

Warner Bros. Discovery Reports Q2 2025 Earnings

Warner Bros. Discovery, Inc. is a global media and entertainment company that creates and distributes a diverse portfolio of branded content across television, film, streaming, and gaming. The company is known for its iconic brands such as HBO, CNN, and Warner Bros. Pictures.

Warner Bros. Discovery’s Earnings Call Highlights Success and Challenges

Warner Bros. Discovery’s recent earnings call painted a picture of both triumphs and challenges. The company celebrated strong box office performance, subscriber growth, and a strategic focus on franchises, all while achieving significant debt reduction and Emmy success. However, it also acknowledged short-term financial pressures from content strategy changes, a dampened growth period due to distribution deal restructuring, and the impact of NBA rights costs.