About Wolverine World Wide, Inc.
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. It operates through two segments: Active Group and Work Group. The company offers casual footwear and apparel; performance outdoor and athletic footwear and apparel; kids' footwear; industrial work boots and apparel; and uniform shoes and boots. It sources and markets a range of footwear and apparel styles, such as shoes, boots and sandals under the Bates, Cat, Chaco, Harley-Davidson, Hush Puppies, Hytest, Merrell, Saucony, Sperry, Keds, Sweaty Betty, and Wolverine brands; and licenses under the Stride Rite brand. The company 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; and Wolverine branded eyewear and gloves. In addition, the company markets pigskin leather under the Wolverine Leather division; sourcing division provides consulting services related to product development, production control, quality assurance, materials procurement, compliance, and other service; and multi-brand direct-to-consumer division includes retail stores that sell footwear and apparel of its brand portfolio and other brands. It 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, third-party licensees and distributors, and joint ventures; and operates brick and mortar retails stores, and e-commerce sites. The company was founded in 1883 and is headquartered in Rockford, Michigan.
Wolverine World Wide, Inc. (WWW) is a Consumer Cyclical company in the Footwear & Accessories industry with a market capitalisation of $1.6B. The stock trades at 14.88x trailing earnings and yields 2.08%.
- Sector
- Consumer Cyclical
- Industry
- Footwear & Accessories
- Market cap
- $1.6B
- P/E ratio
- 14.88
- EPS (TTM)
- $1.14
- Revenue (TTM)
- $1.9B
- Free cash flow
- $125.5M
- Profit margin
- 5.1%
- Dividend yield
- 2.08%
- Shares outstanding
- 82.1M
Financial health: Strong7.5/10
6 strengths, 1 concern. Weakest points: debt to equity.
- Debt to equity: 1.34 (Concern, benchmark < 0.5) — Debt of 1.34x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 2.7y (Strong, benchmark < 4 years) — Net debt of $340.4M is 2.7x annual free cash flow — about 3 years of cash flow to repay.
- Current ratio: 1.40 (Watch, benchmark > 1.5) — Short-term assets cover 1.40x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 23.5% (Strong, benchmark > 15%) — Earns 23.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 47.3% (Strong, benchmark > 40%) — Keeps 47.3% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 5.1% (Watch, benchmark > 10%) — Turns 5.1% of revenue into profit, short of the > 10% mark.
- Free cash flow: $125.5M (Strong, benchmark positive) — Generated $125.5M of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 6.8% (Watch, benchmark > 10%) — Revenue changed 6.8% year on year, short of the > 10% mark.
- Earnings growth: 111.9% (Strong, benchmark > 10%) — Earnings changed 111.9% year on year, comfortably past the > 10% mark.
- Payout ratio: 34.8% (Strong, benchmark < 60%) — Pays out 34.8% of earnings as dividends, leaving room to keep paying.