WW International, Inc. (WW) AI Stock Analysis

• Market Cap: $309.89M
• Dividend Yield: N/A
• Average Volume (3M): 283.99K
• Price to Earnings (P/E): 0.3
• Beta (1Y): 1.41
• Revenue Growth: -9.21%
• EPS Growth: N/A
• Country: US
• Employees: 3,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -5.76
• Shares Outstanding: 9,986,928
• 10 Day Avg. Volume: 406,716
• 30 Day Avg. Volume: 283,989
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.09
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -5.76
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $41.00
• Price Target Upside: 19.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $34.00 ▼(-1.08% Downside)

The overall stock score reflects significant financial challenges and declining revenues, despite positive strategic initiatives and technical momentum. The low P/E ratio suggests potential undervaluation, but financial instability remains a concern.

Positive Factors

Clinical Subscription Growth

The strong growth in clinical subscriptions indicates a successful expansion into medical-based weight management, enhancing long-term revenue potential and market positioning.

Digital Transformation

The digital transformation efforts aim to improve user experience and engagement, which can drive subscriber growth and retention, supporting sustainable revenue streams.

WeightWatchers Clinic Launch

The launch of the WeightWatchers Clinic integrates medical expertise, expanding the company's service offerings and potentially increasing its competitive edge in the wellness market.

Negative Factors

Revenue Decline

The decline in revenue, particularly in behavioral segments, reflects ongoing challenges in maintaining subscriber base and market share, impacting financial stability.

High Leverage

High leverage and negative equity suggest financial instability, limiting the company's ability to invest in growth initiatives and increasing risk during economic downturns.

Behavioral Subscriber Decline

The significant drop in behavioral subscribers indicates challenges in the core business model, potentially affecting long-term revenue and market position.

WW International, Inc. Business Overview & Revenue Model

Company Description

WW International, Inc. (formerly Weight Watchers International, Inc.) is a global wellness company known for its weight management and healthy living programs. The company operates in the health and wellness sector, providing a range of services and products designed to help individuals achieve their weight loss and health goals. WW offers subscription-based digital services, in-person workshops, and a variety of branded products including food items, cookbooks, and fitness accessories. The company emphasizes a holistic approach to weight management, combining nutrition, physical activity, and behavioral strategies.

How the Company Makes Money

WW International generates revenue primarily through its subscription services, which include digital memberships that offer access to personalized weight loss plans, tracking tools, and community support. The company also earns income from in-person workshops and meetings where members receive guidance and motivation. Additionally, WW sells branded food products, cookbooks, and other wellness-related merchandise. Significant partnerships with retailers and food companies enhance its product offerings and market reach, contributing to its overall earnings. The company's focus on expanding its digital platform and enhancing member engagement through technology also plays a crucial role in driving revenue growth.

WW International, Inc. Financial Statement Overview

Summary

WW International, Inc. faces significant financial challenges, with declining revenues and high leverage. Despite recent improvements in net profit and free cash flow, the company's financial stability remains a concern due to historical volatility and negative equity.

Income Statement

The income statement shows a declining revenue trend with a negative growth rate over the periods. Despite a high net profit margin in the TTM, historical data indicates volatility with periods of negative net income. Gross profit margins have been relatively stable but are overshadowed by inconsistent EBIT and EBITDA margins, reflecting operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a consistently negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is unfavorable, and the return on equity is erratic, suggesting potential risks in financial health and sustainability.

Cash Flow

Cash flow analysis shows improvement in free cash flow growth in the TTM, but historical periods have seen negative free cash flow and operating cash flow. The operating cash flow to net income ratio is low, indicating potential cash flow management issues despite recent improvements.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	534.50M	785.92M	889.55M	1.04B	1.41B	1.51B
Gross Profit	387.50M	533.10M	529.30M	622.40M	786.68M	866.41M
EBITDA	1.17B	-194.89M	74.73M	-244.95M	333.00M	433.05M
Net Income	1.06B	-345.70M	-112.25M	-251.40M	119.62M	223.75M
Balance Sheet
Total Assets	968.75M	550.28M	982.03M	1.03B	1.50B	1.41B
Cash, Cash Equivalents and Short-Term Investments	170.15M	53.02M	109.37M	178.33M	182.74M	236.97M
Total Debt	3.45M	1.48B	1.49B	1.51B	1.74B	1.75B
Total Liabilities	645.76M	1.66B	1.74B	1.71B	2.18B	2.22B
Stockholders Equity	322.99M	-1.11B	-761.09M	-683.82M	-685.54M	-808.94M
Cash Flow
Free Cash Flow	40.00M	-17.56M	-29.61M	38.39M	134.40M	248.78M
Operating Cash Flow	29.59M	-16.84M	6.69M	76.65M	182.38M	295.59M
Investing Cash Flow	-11.59M	-16.41M	-74.70M	-42.64M	-52.62M	-63.96M
Financing Cash Flow	154.73M	-17.34M	-2.75M	-4.72M	-182.99M	-74.35M

WW International, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRM	58 Neutral	$15.65M	5.41	48.22%	―	13.71%	―
WW	54 Neutral	$309.89M	0.28	―	―	-9.21%	―
MED	47 Neutral	$131.68M	582.78	0.12%	―	-36.29%	-96.65%

WW International, Inc. Corporate Events

WW International’s New Study on Weight Management Programs: What Investors Need to Know

WW International, Inc. is currently recruiting participants for a study titled ‘The Comparative Effectiveness of Commercial Weight Management Programs in Adults Living With Overweight or Obesity: A Randomized Controlled Trial.’ The study aims to evaluate the effectiveness of three commercial weight management programs by measuring absolute and percentage weight change over 12 weeks. This research is significant as it seeks to provide evidence-based insights into the efficacy of popular weight management solutions.

WeightWatchers’ Earnings Call: Debt Reduction and Challenges

WeightWatchers’ recent earnings call presented a mixed sentiment, highlighting both significant achievements and ongoing challenges. The company has made notable progress in debt reduction and strategic reorganization, evidenced by its relisting on NASDAQ and an increase in average revenue per user (ARPU). However, these positive developments are tempered by difficulties in subscriber retention, a decline in revenue, and negative media coverage stemming from bankruptcy. Additionally, the transition from compounded semaglutide poses short-term obstacles.