A Business at a Glance
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ITEM 1. Business. For convenience, the terms “Warner Bros. Discovery”, “WBD”, the “Company,” “we,” “us” or “our” are used in this Annual Report on Form 10-K to refer to both Warner Bros. Discovery, Inc. and collectively to Warner Bros. Discovery, Inc. and one or more of its consolidated subsidiaries, unless the context otherwise requires. Industry Trends Headwinds in the industry, such as continued pressures on linear distribution and declines in linear subscribers and continued softness in the U.S. linear advertising market, have had, and are expected to continue to have, a material impact on the operations and results of the Company, including a negative impact on the results of operations attributed to declines in linear advertising revenue.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 37.3B | 37.3B | 39.3B | 41.3B | 33.8B | 12.2B |
| Net Income | 727M | 727M | -11.3B | -3.1B | -7.4B | 1.0B |
| EPS | $0.29 | $0.29 | $-4.62 | $-1.28 | $-3.82 | $0.52 |
| Free Cash Flow | 3.1B | 3.1B | 4.4B | 6.2B | 3.3B | 2.4B |
| ROIC | 0.5% | 0.7% | -16.0% | -3.6% | -7.7% | 8.9% |
| Gross Margin | 44.0% | 44.0% | 41.6% | 40.6% | 39.6% | 62.1% |
| Debt/Equity | 0.91 | 0.91 | 1.24 | 1.00 | 1.05 | 1.30 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 738M | 738M | -10.0B | -1.5B | -7.4B | 2.0B |
| Operating Margin | 2.0% | 2.0% | -25.5% | -3.7% | -21.8% | 16.5% |
| ROE | 2.0% | 2.1% | -33.2% | -6.9% | -15.7% | 8.7% |
| Shares Outstanding | 2,507M | 2,507M | 2,448M | 2,442M | 1,930M | 2,430M |
Warner Bros. Discovery, Inc. passes 1 of 9 quality checks, indicating weak fundamentals.
Warner Bros. Discovery, Inc. trades at 94.4x trailing earnings, compared to its 15-year median P/E of 14.8x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 22.2x vs a median of 5.2x. The company's 5-year average gross margin is 45.6%. At current prices, the estimated annualized return to fair value is -24.7%.
Warner Bros. Discovery, Inc. (WBD) has a current P/E ratio of 94.4, compared to its historical median P/E of 14.8. The stock is currently considered Expensive based on its historical valuation range.
Warner Bros. Discovery, Inc. (WBD) has a 5-year average return on invested capital (ROIC) of -3.5%. This is below average and may indicate limited pricing power.
Warner Bros. Discovery, Inc. (WBD) has a market capitalization of $68.7B. It is classified as a large-cap stock.
Warner Bros. Discovery, Inc. (WBD) does not currently pay a regular dividend.
Based on historical P/E analysis, Warner Bros. Discovery, Inc. (WBD) appears expensive. The current P/E of 94.4 is 540% above its historical median of 14.8. The estimated fair value CAGR (P/E method) is -4.9%.
Warner Bros. Discovery, Inc. (WBD) operates in the Cable & Other Pay Television Services industry, within the Communication Services sector.
Warner Bros. Discovery, Inc. (WBD) reported annual revenue of $37.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Warner Bros. Discovery, Inc. (WBD) has a net profit margin of 1.9%. This is a modest margin.
Warner Bros. Discovery, Inc. (WBD) generated $3.1 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Warner Bros. Discovery, Inc. (WBD) has a debt-to-equity ratio of 0.91. This indicates moderate leverage.
Warner Bros. Discovery, Inc. (WBD) reported earnings per share (EPS) of $0.29 in its most recent fiscal year.
Warner Bros. Discovery, Inc. (WBD) has a return on equity (ROE) of 2.1%. This indicates moderate shareholder returns.
Warner Bros. Discovery, Inc. (WBD) has a 5-year average gross margin of 45.6%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for Warner Bros. Discovery, Inc. (WBD), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Warner Bros. Discovery, Inc. (WBD) has a book value per share of $14.33, based on its most recent annual SEC filing.