Wolverine World Wide (WWW) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: 2.28%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.89
• Revenue Growth: 3.61%
• EPS Growth: N/A
• Country: US
• Employees: 3,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.36
• Shares Outstanding: 81,967,896
• 10 Day Avg. Volume: 1,588,267
• 30 Day Avg. Volume: 1,468,894
• PEG Ratio: -0.18
• Price to Book (P/B): 5.85
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 11.25
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 2.53
• Enterprise Value/Ebitda: 13.45
• 1Y Price Target: $20.60
• Price Target Upside: 13.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $20.00 ▲(10.01% Upside)

Wolverine World Wide's overall stock score reflects moderate financial performance with strengths in profitability and operational efficiency. The positive earnings call guidance and brand performance are significant positives. However, technical indicators suggest bearish momentum, and high leverage poses financial risks. The valuation is moderate, offering some income potential but no significant discount.

Positive Factors

Brand-driven revenue growth (Saucony, Merrell)

Outperformance by Saucony and steady Merrell growth indicate durable brand strength and portfolio breadth. Sustained, multi-channel demand for these core brands supports predictable revenue streams, helps offset weaker segments, and underpins longer-term investment in product and DTC capabilities.

Improving gross margin and cost management

Consistent margin expansion driven by product cost savings and a healthier mix of full-price sales signals structural improvements in pricing and supply execution. Higher gross margins provide durable buffer against cost inflation and tariffs, enabling reinvestment in brands and improving long-term profitability.

Strong return on equity and margin recovery

High ROE and improving operating margin reflect effective capital allocation and operational leverage. Sustained margin recovery combined with above-average ROE supports long-term shareholder returns and indicates management can extract improving profitability even with modest revenue growth.

Negative Factors

High financial leverage

Material leverage constrains financial flexibility, increasing sensitivity to sales volatility and interest costs. High debt limits capacity for strategic investments, share returns, or downside absorption, making the firm more vulnerable to cyclical demand shifts and protracted margin pressure.

Declining free cash flow and weak cash conversion

Sharp FCF decline and poor operating cash conversion highlight liquidity risks and reduce ability to pay down debt or fund brand investments organically. Persistent weak cash generation can force reliance on external financing, increasing interest burden and long-term cost of capital.

Underperforming segments and tariff cost pressure

Structural weakness in Work Group and Sweaty Betty, lower DTC, and recurring tariff costs reflect execution and mix risks. These factors can persistently suppress top-line diversification and margin expansion, requiring sustained brand fixes or cost offsets to restore balanced, durable growth.

Wolverine World Wide Business Overview & Revenue Model

Company Description

Wolverine World Wide, Inc. designs, manufactures, sources, markets, licenses, and distributes footwear, apparel, and accessories in the United States, Europe, the Middle East, Africa, the Asia Pacific, Canada and Latin America. The company operates through two segments, Wolverine Michigan Group and Wolverine Boston Group. It offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; kids' footwear; industrial work boots and apparel; and uniform shoes and boots. The company sources, markets, and licenses a range of footwear styles, such as shoes, boots, and sandals under the Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, Hytest, Keds, Merrell, Saucony, Sperry, Sweaty Betty, Wolverine, and Stride Rite brands. It also markets Merrell and Wolverine branded apparel and accessories, as well as licenses its brands for use on non-footwear products, including the Hush Puppies apparel, eyewear, watches, socks, handbags, and plush toys; Wolverine branded eyewear and gloves; and Keds, Saucony, and Sperry branded apparel. In addition, the company markets pigskin leather under the Wolverine Warrior Leather, Weather Tight, and All Season Weather Leathers trademarks for use in the footwear industry. Further, it operates brick and mortar retail stores, and eCommerce sites. The company sells its products to department stores, national chains, catalog and specialty retailers, independent retailers, uniform outlets, and mass merchant and government customers through retail stores, as well as through third-party licensees and distributors, and joint ventures. As of January 1, 2022, it operated 143 retail stores, as well as 65 consumer-direct eCommerce sites. Wolverine World Wide, Inc. was founded in 1883 and is based in Rockford, Michigan.

How the Company Makes Money

Wolverine World Wide generates revenue primarily through the sale of its branded footwear and apparel across various retail channels, including wholesale distribution, direct-to-consumer sales through branded retail stores, and e-commerce platforms. The company benefits from a broad geographic reach, with significant sales in North America and international markets. Key revenue streams include sales from its prominent brands, which are supported by strategic marketing initiatives and seasonal collections. Additionally, Wolverine partners with various retailers and distributors to extend its market presence, while also engaging in licensing agreements that allow third-party manufacturers to produce products under its brand names, further diversifying its income sources. The company's focus on product innovation and collaborations with influencers and athletes also helps drive consumer demand and brand loyalty, contributing to its overall profitability.

Wolverine World Wide Financial Statement Overview

Summary

Wolverine World Wide demonstrates moderate financial health with strengths in profitability and operational efficiency. However, high leverage and declining cash flow growth pose risks. The company should focus on improving revenue growth and managing debt levels to enhance financial stability.

Income Statement

Wolverine World Wide's income statement shows a moderate performance with a TTM gross profit margin of 46.43% and a net profit margin of 4.73%. The company has managed to improve its EBIT and EBITDA margins over the past year, indicating better operational efficiency. However, the revenue growth rate is low at 1.65%, suggesting limited top-line expansion.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.27, indicating significant leverage. While the return on equity is relatively strong at 23.72%, the equity ratio is low, reflecting potential financial risk. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow growth at -57.68%. The operating cash flow to net income ratio is low at 0.14, indicating potential cash flow challenges. However, the free cash flow to net income ratio is healthy at 0.71, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.85B	1.75B	2.24B	2.68B	2.41B	1.79B
Gross Profit	859.70M	781.50M	872.50M	1.07B	1.03B	735.60M
EBITDA	161.50M	130.50M	-46.20M	-171.00M	207.30M	-107.70M
Net Income	87.60M	47.90M	-39.60M	-188.30M	68.60M	-136.90M
Balance Sheet
Total Assets	1.71B	1.67B	2.06B	2.49B	2.59B	2.14B
Cash, Cash Equivalents and Short-Term Investments	133.90M	152.10M	179.00M	131.50M	161.70M	347.40M
Total Debt	822.10M	797.70M	1.09B	1.35B	1.12B	886.80M
Total Liabilities	1.32B	1.35B	1.76B	2.15B	1.94B	1.56B
Stockholders Equity	376.70M	307.30M	278.60M	320.60M	629.60M	561.40M
Cash Flow
Free Cash Flow	54.30M	159.90M	107.20M	-215.40M	69.20M	298.80M
Operating Cash Flow	76.20M	180.10M	121.80M	-178.90M	86.80M	309.10M
Investing Cash Flow	-21.20M	86.80M	171.60M	54.60M	-437.30M	6.10M
Financing Cash Flow	-58.90M	-299.20M	-246.30M	107.10M	169.30M	-154.00M

Wolverine World Wide Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WWW, the sentiment is Positive. The current price of 18.18 is below the 20-day moving average (MA) of 18.31, above the 50-day MA of 17.86, and below the 200-day MA of 20.79, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 48.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WWW.

Wolverine World Wide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCKY	76 Outperform	$249.31M	12.15	8.67%	2.08%	4.13%	53.56%
WEYS	70 Outperform	$315.10M	13.02	9.57%	9.66%	-3.64%	-16.12%
SHOO	64 Neutral	$2.82B	49.23	6.68%	1.97%	6.26%	-66.51%
CROX	63 Neutral	$4.50B	27.55	11.82%	―	<0.01%	-77.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	58 Neutral	$1.49B	17.34	25.57%	2.28%	3.61%	―
CAL	57 Neutral	$455.22M	21.69	3.33%	2.11%	-2.83%	-86.19%