Should you buy Weight Watchers stock? (August 2023)
- 9 months ago
Weight Watchers stock analysis. Ticker: WW
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Back in March, Weight Watchers announced it was buying a platform that prescribes weight-loss drugs including Ozempic.
That news has pushed the stock up 167% year to date. But the company is not profitable right now and has a lot of debt. So let’s take a closer look…
At the current share price just above $10, Weight Watchers has a market cap of 813 million dollars. It’s got 91 million of cash but 1.4 billion of debt so the enterprise value is 2.1 billion.
Revenue over the last 12 months is 942 million and adjusted ebitda is 168 million but net income is minus 306 million and free cash flow is only 20 million.
That means Weight Watchers is valued at 2.3 times revenue and over 100 times free cash flow.
With so much debt on the balance sheet, Weight Watchers is in danger of bankruptcy. And recent trends don’t look good. Revenue for the first six months of fiscal 2023 were $469 million which is a 17 % decrease from the year before. In fact, Weight Watchers revenue has dropped every year since 2018 and the stock price has fallen 90% over that time.
#stockstowatch #investing #stocks #overlookedalpha
Join 9000+ investors: https://www.overlookedalpha.com
Back in March, Weight Watchers announced it was buying a platform that prescribes weight-loss drugs including Ozempic.
That news has pushed the stock up 167% year to date. But the company is not profitable right now and has a lot of debt. So let’s take a closer look…
At the current share price just above $10, Weight Watchers has a market cap of 813 million dollars. It’s got 91 million of cash but 1.4 billion of debt so the enterprise value is 2.1 billion.
Revenue over the last 12 months is 942 million and adjusted ebitda is 168 million but net income is minus 306 million and free cash flow is only 20 million.
That means Weight Watchers is valued at 2.3 times revenue and over 100 times free cash flow.
With so much debt on the balance sheet, Weight Watchers is in danger of bankruptcy. And recent trends don’t look good. Revenue for the first six months of fiscal 2023 were $469 million which is a 17 % decrease from the year before. In fact, Weight Watchers revenue has dropped every year since 2018 and the stock price has fallen 90% over that time.
#stockstowatch #investing #stocks #overlookedalpha