One-glance verdict
Undervalued
$92.24 our estimate vs market $13.04
Wall Street consensus: $27.50 (-70.2% lower than our fair-value estimate)
86% below our estimate, below the bear case
Fundamentals snapshot
WW International, Inc.
WW · NGM · Healthcare · Medical Care Facilities
Current price
$13.04
52-week range
$8.37 - $38.38
Market cap
$130.38M
Balance sheet
Distressed
0.73x Concerning
Net debt $324.81M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 141.3% last year.
- Reward Free cash flow was positive in 9/10 years.
- Reward Trades at 0.1x P/E vs peer median 6.6x (98.2% cheaper).
- Risk Return on equity was -30.7% last year — the company lost money on shareholders' equity.
What this company does
WW International, Inc.
WW International, the company behind Weight Watchers, sells weight management plans through digital subscriptions and in-person workshops. They make most of their money from these monthly or yearly subscription fees, which provide them with recurring revenue (a steady, predictable stream of income from repeat customers). The company is adapting to the rise of new weight-loss drugs by offering programs that include access to doctors who can prescribe them, aiming to keep their services essential in a changing health landscape.
How the company got here
Founded in 1963 by Jean Nidetch, a homemaker in Queens, New York, the company started as a support group for friends wanting to lose weight. This simple idea of shared experience and mutual support grew into a global business. In 2018, Weight Watchers rebranded to WW to shift its focus from just weight loss to overall health and wellness. Recently, the company has adapted to new trends by incorporating telehealth services and support for members using popular new weight-management medications.
What it actually does
WW offers tools and programs to help people manage their weight and live healthier lives. This includes digital apps for tracking food and activity, virtual and in-person workshops with coaches, and even clinical services that provide access to doctors who can prescribe weight-management medications. The company is known for its Points system, which assigns a value to foods to guide members toward healthier eating habits. They also sell WW-branded products like snacks and cookbooks.
Behavioral Subscriptions
This is the company's traditional business, where most of its customers are. Members pay a recurring subscription fee for access to WW's weight management programs, which focus on changing eating and activity habits. This includes the use of their digital app to track food (using the Points system), exercise, and connect with other members in a social community. Customers can choose a digital-only plan or one that includes unlimited access to virtual or in-person workshops led by WW coaches for extra support and accountability.
Clinical Subscriptions
A newer and growing part of the business, this segment serves customers who are using prescription weight-management medications, often called GLP-1s. Members pay a subscription fee that includes access to medical professionals who can prescribe these medications if appropriate. This service combines medical supervision with WW's behavioral programs, offering specialized meal plans and support to help members manage the unique nutritional needs and side effects while on these medications.
Other Revenue
This is a smaller slice of the company's business that makes money in ways other than subscriptions. It includes licensing the WW brand name to food and beverage companies to put on their products. It also earns royalties (a percentage of sales) from franchise operations and sells its own consumer products like cookbooks and kitchen tools.
What management is betting on now
Management is focused on transforming WW into a comprehensive digital health company that fully integrates behavioral support with clinical medical solutions. A major priority is growing the 'Clinical' business by providing support and access to new weight-management medications (GLP-1s), which they see as a key part of the future of weight health. The strategy is to be a trusted partner for people managing their weight, whether through lifestyle changes alone or with the help of medication, by combining technology, community, and medical access.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$16.40M
FY2024 Q4
$4.49M
FY2025 Q1
$14.99M
FY2025 Q2
$-49.50M
FY2025 Q3
$8.41M
Revenue
$162.32M
Net income
$14.07M
Diluted EPS
1.41
Operating cash flow
$24.27M
Free cash flow
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Sources
Revenue
$168.26M
Net income
$-52.00M
Diluted EPS
-5.20
Operating cash flow
$-33.55M
Free cash flow
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Sources
Revenue
$334.90M
Net income
$-63.35M
Diluted EPS
-6.35
Operating cash flow
$-2.89M
Free cash flow
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Sources
Revenue
$172.09M
Net income
$-57.52M
Diluted EPS
-5.76
Operating cash flow
$8.42M
Free cash flow
$8.41M
Fetching…
Sources
Revenue
$177.00M
Net income
$1.19B
Diluted EPS
14.67
Operating cash flow
$-49.42M
Free cash flow
$-49.50M
Fetching…
Sources
Revenue
$186.57M
Net income
$-72.58M
Diluted EPS
-0.91
Operating cash flow
$15.00M
Free cash flow
$14.99M
Fetching…
Sources
Revenue
$184.41M
Net income
$25.12M
Diluted EPS
0.34
Operating cash flow
$4.61M
Free cash flow
$4.49M
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Sources
Revenue
$192.89M
Net income
$-46.19M
Diluted EPS
-0.58
Operating cash flow
$16.53M
Free cash flow
$16.40M
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Sources
Is it cheap or expensive?
Fair value $92.24 vs current price $13.04
Wall Street consensus is the average analyst price target: $27.50 (-70.2% lower than our fair-value estimate).
Our most-likely fair value is $92.24 a share — about 607.4% above today's price of $13.04, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $324.8M. Interest coverage 0.7x.
Net debt
$324.81M
Interest coverage
0.73x
WW International, Inc.'s profit covers its interest bill about 0.7 times over. and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
WW
BASELINE
WW International, Inc.
Total debt $426.31M Interest coverage 0.73x This is the baseline the peer rows are being compared against.
Total debt $27.62M Interest coverage -20.28x -100% vs WW This peer has almost no interest-payment cushion compared with WW.
Total debt $448.46M Interest coverage 9.40x +1,184% vs WW Carries about 12.8x more debt cushion than WW.
Total debt $1.17B Interest coverage 5.23x +613% vs WW Carries about 7.1x more debt cushion than WW.
Total debt $529.75M Interest coverage 0.93x +27% vs WW Carries about 1.3x more debt cushion than WW.
What you should know
The case for and against WW
3 Rewards
1 Risk
Rewards
-
Revenue grew 141.3% last year.
-
Free cash flow was positive in 9/10 years.
-
Trades at 0.1x P/E vs peer median 6.6x (98.2% cheaper).
Risks
-
Return on equity was -30.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
0.12x
Forward P/E
-558.94x
P/B
0.47x
P/S
0.20x
EV/EBITDA
4.70x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
71.0%
Operating margin
8.1%
Net margin
-15.2%
ROE
-30.7%
ROA
-0.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.53x
Current ratio
1.39x
Quick ratio
1.11x
Total debt
$426.31M
Total cash
$101.50M
Growth
How the business has been compounding
Revenue TTM
$837.58M
Revenue 5Y CAGR
-26.9%
EPS TTM
108.84
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-3.75M
Free CF TTM
$5.44M
FCF margin
0.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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