Warner Bros. Discovery, Inc. (WBD) Stock Analysis

Analysis from 10-Q filed 2025-11-06. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC -4.0%. FCF margin 6.2%. D/E 1.0x. Source: 10-Q filed 2025-11-06.

Metric	Value	Context
ROIC	-4.0%	Below expectations
FCF Margin	6.2%	Healthy cash flow
Debt/Equity	1.0x	Moderate leverage

ROIC -4.0% — Bottom 50% of sector peers. FCF margin 6.2% — Top 50%.

Explore Warner Bros. Discovery, Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for WBD: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Warner Bros. Discovery, Inc. earns -4.0% ROIC, Bottom 50% in Communication Services

ROIC TTM -4.0%, sector median 2.0%, Bottom 50%. DuPont: NOPAT margin -7.4% × asset turnover 0.4x. Gross margin 45.2%. Operating margin -4.6%. Source: 10-Q filed 2025-11-06.

Metric	WBD	Rating	Context
Return on Invested Capital (ROIC)	-4.0%	Red flag	Below sector median of 2.0%
Return on Equity (ROE)	-4.9%	Red flag	Moderate equity returns
Gross Margin	45.2%	Good	Strong pricing power
Operating Margin	-4.6%	Warning	Moderate operational efficiency

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Cash Flow: Warner Bros. Discovery, Inc. generates $2.3B FCF at 6.2% margin, positive NaN/8 quarters

FCF TTM $2.3B. FCF margin 6.2%, Top 50%. OCF/Net income -2.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-06.

Metric	WBD	Rating	Context
Free Cash Flow Margin	6.2%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$2.3B	Good	Positive cash generation
OCF/Net Income	-2.1x	Warning	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Warner Bros. Discovery, Inc. at 1.0x leverage

Debt/Equity 1.0x. Total debt $32.5B, cash & investments $3.3B. Source: 10-Q filed 2025-11-06.

Metric	WBD	Rating	Context
Debt to Equity	1.0x	Adequate	Moderate leverage
Net Cash Position	$-29.2B	Warning	Net debt position

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Valuation: Warner Bros. Discovery, Inc. trades at -39.3x earnings

P/E -39.3x. EV/Sales 2.6x. FCF yield 3.4%. Source: 10-Q filed 2025-11-06.

Metric	WBD	Rating	Context
P/E Ratio	-39.3x	Red flag	Reasonable valuation
EV/Sales	2.6x	Good	Attractive revenue multiple
FCF Yield	3.4%	Adequate	Lower cash yield

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Capital Allocation: Warner Bros. Discovery, Inc. returns 0.0% shareholder yield

Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2025-11-06.

Metric	WBD	Rating	Context
Total Shareholder Yield	0.0%	Warning	Dividend + buyback yield combined
Total Capital Returned (TTM)	$0	Adequate	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	-4.0%	Bottom 50%	-2.0x below
Free Cash Flow Margin	6.2%	Top 50%	2.7x above
Gross Margin	45.2%	Bottom 50%	0.8x below
Operating Margin	-4.6%	Bottom 50%	-0.9x below
Return on Equity (ROE)	-4.9%	Bottom 50%	-1.9x below

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Financial Scorecard

Metric	WBD	Rating	Sector Context
Return on Invested Capital (ROIC)	-4.0%	Red flag	Bottom 50% of sector (median: 2.0%)
Free Cash Flow Margin	6.2%	Adequate	Top 50% of sector (median: 2.3%)
Gross Margin	45.2%	Good	Bottom 50% of sector (median: 55.4%)
Debt to Equity Ratio	99.7%	Adequate	Elevated but manageable
Free Cash Flow Yield	3.4%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is Warner Bros. Discovery, Inc.'s Return on Invested Capital (ROIC)?

Warner Bros. Discovery, Inc. (WBD) has a trailing twelve-month Return on Invested Capital (ROIC) of -4.0%. Sector median 2.0%. Source: 10-Q filed 2025-11-06.

Q: What is Warner Bros. Discovery, Inc.'s Free Cash Flow Margin?

Warner Bros. Discovery, Inc. (WBD) has a free cash flow margin of 6.2%, generating $2.3 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-06.

Q: What is Warner Bros. Discovery, Inc.'s P/E ratio and how does it compare to peers?

Warner Bros. Discovery, Inc. (WBD) trades at a P/E ratio of -39.3x, which is above the sector median of N/A. EV/Sales 2.6x. FCF yield 3.4%. Source: 10-Q filed 2025-11-06.

Q: How much debt does Warner Bros. Discovery, Inc. have?

Warner Bros. Discovery, Inc. (WBD) has a debt-to-equity ratio of 1.0x with total debt of $32.5 billion. Net debt $29.2 billion. Source: 10-Q filed 2025-11-06.

Q: What is Warner Bros. Discovery, Inc.'s revenue and earnings growth?

Warner Bros. Discovery, Inc. (WBD) declined revenue by 3.0% year-over-year. EPS +84.3% YoY. Source: 10-Q filed 2025-11-06.

Q: How does Warner Bros. Discovery, Inc. compare to competitors in Communication Services?

Compared to other companies in Communication Services, Warner Bros. Discovery, Inc. (WBD) shows: ROIC -4.0%, sector median 2.0% (Bottom 50%). FCF margin 6.2%, sector median 2.3% (Top 50%). Gross margin 45.2%, 10.2pp below sector median. These rankings are based on MetricDuck's analysis of all Communication Services companies with available SEC filings.

Q: What warning signs should I watch for with Warner Bros. Discovery, Inc.?

No quantitative warning flags fired for Warner Bros. Discovery, Inc. (WBD) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-11-06.

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Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.