Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, sports entertainment company World Wrestling Entertainment (WWE) has received a distressing two-star ranking.
With that in mind, let's take a closer look at WWE and see what CAPS investors are saying about the stock right now.
WWE facts
|
Headquarters (founded) |
Stamford, Conn. (1980) |
|
Market Cap |
$641.8 million |
|
Industry |
Movies and entertainment |
|
Trailing-12-Month Revenue |
$484.0 million |
|
Management |
Co-Founder/Chairman/CEO Vincent McMahon CFO George Barrios |
|
Return on Equity (average, past 3 years) |
11.7% |
|
Cash/Debt |
$152.3 million/$0 |
|
Dividend Yield |
5.6% |
|
Competitors |
Live Nation (LYV 1.51%) NASCAR National Football Association |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 20% of the 542 members who have rated WWE believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, TheCrazy1, succinctly summed up WWE bear case for our community:
Virtually no revenue growth to speak of. ... TV ratings have declined dramatically since the "Attitude Era" and have stabilized in the low 3's. UFC is cutting into their audience and drawing more pay-per view buys and mainstream publicity. The stock trades at 29x last year's earnings. That's the kind of P/E ratio that's acceptable for a growing company, not a company in decline.
There may be hope for WWE if the creative team focuses on building new stars, creating quality storylines, and most importantly, realizes that John Cena is not the next Hulk Hogan.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
