StockStory flags falling revenue and cash strain at WeightWatchers
The publisher cited five-year sales declines, negative average free cash flow and lower returns on invested capital despite recent share gains.
Key takeaways
- WeightWatchers sales fell at a 12.4% annual rate over five years, according to StockStory.
- Its free cash flow margin averaged negative 1.9% over two years, the publisher said.
StockStory argued that WeightWatchers’ recent share gains do not outweigh concerns about its business. The publisher said the stock rose 36.8% over six months and beat the S&P 500 by 21.5%.
The publisher said sales declined at a 12.4% annual rate over the past five years. It also reported that free cash flow margin averaged negative 1.9% over two years, even though the company generated positive free cash flow in the latest quarter.
StockStory also pointed to a significant decline in returns on invested capital. It said the shares traded at 4.1 times forward EV-to-EBITDA, or $15.46 per share, and described the valuation as optically cheap while warning of downside risk.
This article was produced with the help of AI technology. Source: Yahoo Finance
