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Weibo

Nasdaq:WB
Snowflake Description

Adequate balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WB
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. The last earnings update was 43 days ago. More info.


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  • Weibo has significant price volatility in the past 3 months.
WB Share Price and Events
7 Day Returns
9.9%
NasdaqGS:WB
1.5%
US Interactive Media and Services
2.4%
US Market
1 Year Returns
-48.4%
NasdaqGS:WB
-8%
US Interactive Media and Services
-10%
US Market
WB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Weibo (WB) 9.9% -15% -24.2% -48.4% -29.1% 137.6%
US Interactive Media and Services 1.5% -8.9% -19.9% -8% 25.4% 77.5%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • WB underperformed the Interactive Media and Services industry which returned -8% over the past year.
  • WB underperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
WB
Industry
5yr Volatility vs Market

Value

 Is Weibo undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Weibo to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Weibo.

NasdaqGS:WB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:WB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 6.3%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.046 (1 + (1- 25%) (21.16%))
1.142
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.142 * 6.33%)
8.97%

Discounted Cash Flow Calculation for NasdaqGS:WB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Weibo is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:WB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.97%)
2020 709.43 Analyst x7 651.05
2021 673.29 Analyst x7 567.03
2022 789.89 Analyst x4 610.49
2023 824.75 Est @ 4.41% 584.97
2024 854.53 Est @ 3.61% 556.22
2025 880.59 Est @ 3.05% 526.01
2026 903.99 Est @ 2.66% 495.55
2027 925.52 Est @ 2.38% 465.60
2028 945.78 Est @ 2.19% 436.64
2029 965.21 Est @ 2.05% 408.94
Present value of next 10 years cash flows $5,302.00
NasdaqGS:WB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $965.21 × (1 + 1.74%) ÷ (8.97% – 1.74%)
$13,587.45
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $13,587.45 ÷ (1 + 8.97%)10
$5,756.72
NasdaqGS:WB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,302.00 + $5,756.72
$11,058.72
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,058.72 / 225.04
$49.14
NasdaqGS:WB Discount to Share Price
Calculation Result
Value per share (USD) From above. $49.14
Current discount Discount to share price of $35.54
= -1 x ($35.54 - $49.14) / $49.14
27.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Weibo is available for.
Intrinsic value
28%
Share price is $35.54 vs Future cash flow value of $49.14
Current Discount Checks
For Weibo to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Weibo's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Weibo's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Weibo's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Weibo's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:WB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.19
NasdaqGS:WB Share Price ** NasdaqGS (2020-04-08) in USD $35.54
United States of America Interactive Media and Services Industry PE Ratio Median Figure of 29 Publicly-Listed Interactive Media and Services Companies 23.76x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Weibo.

NasdaqGS:WB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:WB Share Price ÷ EPS (both in USD)

= 35.54 ÷ 2.19

16.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Weibo is good value based on earnings compared to the US Interactive Media and Services industry average.
  • Weibo is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Weibo's expected growth come at a high price?
Raw Data
NasdaqGS:WB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
9.8%per year
United States of America Interactive Media and Services Industry PEG Ratio Median Figure of 24 Publicly-Listed Interactive Media and Services Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

NasdaqGS:WB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.2x ÷ 9.8%

1.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Weibo is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Weibo's assets?
Raw Data
NasdaqGS:WB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $10.10
NasdaqGS:WB Share Price * NasdaqGS (2020-04-08) in USD $35.54
United States of America Interactive Media and Services Industry PB Ratio Median Figure of 60 Publicly-Listed Interactive Media and Services Companies 1.92x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NasdaqGS:WB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:WB Share Price ÷ Book Value per Share (both in USD)

= 35.54 ÷ 10.10

3.52x

* Primary Listing of Weibo.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Weibo is overvalued based on assets compared to the US Interactive Media and Services industry average.
X
Value checks
We assess Weibo's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. Weibo has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Weibo expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Weibo expected to grow at an attractive rate?
  • Weibo's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Weibo's earnings growth is positive but not above the United States of America market average.
  • Weibo's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:WB Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:WB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 9.8%
NasdaqGS:WB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 5.9%
United States of America Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 13.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:WB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:WB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 2,085 759 645 12
2021-12-31 1,951 689 585 20
2020-12-31 1,735 672 469 19
2020-04-09
NasdaqGS:WB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,767 495
2019-09-30 1,781 566
2019-06-30 1,773 585
2019-03-31 1,768 484 623
2018-12-31 1,719 488 572
2018-09-30 1,614 536
2018-06-30 1,474 472
2018-03-31 1,301 405
2017-12-31 1,150 539 353
2017-09-30 985 265
2017-06-30 842 402 196
2017-03-31 736 148

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Weibo's earnings are expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).
  • Weibo's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:WB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Weibo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 2.78 3.50 2.24 9.00
2021-12-31 2.58 3.19 2.19 15.00
2020-12-31 2.09 2.37 1.87 15.00
2020-04-09
NasdaqGS:WB Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.19
2019-09-30 2.52
2019-06-30 2.60
2019-03-31 2.78
2018-12-31 2.56
2018-09-30 2.40
2018-06-30 2.12
2018-03-31 1.83
2017-12-31 1.60
2017-09-30 1.21
2017-06-30 0.90
2017-03-31 0.68

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Weibo is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Weibo's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Weibo has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Weibo performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Weibo's growth in the last year to its industry (Interactive Media and Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Weibo has delivered over 20% year on year earnings growth in the past 5 years.
  • Weibo's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Weibo's 1-year earnings growth is negative, it can't be compared to the US Interactive Media and Services industry average.
Earnings and Revenue History
Weibo's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Weibo Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:WB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,766.91 494.68 556.06 284.44
2019-09-30 1,780.64 566.11 557.79 271.77
2019-06-30 1,773.06 585.26 556.48 268.96
2019-03-31 1,767.81 623.18 577.54 259.20
2018-12-31 1,718.52 571.82 571.18 249.87
2018-09-30 1,614.09 536.30 520.05 245.26
2018-06-30 1,473.95 472.11 457.01 229.81
2018-03-31 1,300.74 404.74 377.22 214.73
2017-12-31 1,150.05 352.59 317.85 193.39
2017-09-30 985.36 264.58 275.36 175.36
2017-06-30 842.20 195.55 236.77 164.26
2017-03-31 735.71 147.86 208.63 156.35
2016-12-31 655.80 108.03 189.50 154.09
2016-09-30 592.08 84.18 174.25 150.83
2016-06-30 539.93 66.55 160.57 148.65
2016-03-31 500.89 44.89 156.01 146.05
2015-12-31 477.89 34.75 154.98 143.44
2015-09-30 434.08 20.05 152.13 139.94
2015-06-30 393.47 0.79 154.77 134.21
2015-03-31 362.95 -21.00 155.08 131.35
2014-12-31 334.17 -65.33 146.84 125.83
2014-09-30 300.38 -48.19 133.04 118.85
2014-06-30 269.62 -46.49 113.09 111.72
2014-03-31 229.94 -66.25 104.72 109.13
2013-12-31 188.31 -39.79 86.29 100.74
2013-09-30 145.40 -77.04 69.07 95.24

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Weibo has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Weibo used its assets more efficiently than the US Interactive Media and Services industry average last year based on Return on Assets.
  • Weibo's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Weibo's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Weibo has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Weibo's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Weibo's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Weibo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Weibo's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Weibo's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Weibo Company Filings, last reported 3 months ago.

NasdaqGS:WB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 2,281.82 1,682.25 2,404.22
2019-09-30 2,123.97 1,680.91 2,369.91
2019-06-30 2,024.18 886.20 1,559.81
2019-03-31 1,945.61 885.16 1,493.23
2018-12-31 1,748.14 884.12 1,825.87
2018-09-30 1,578.84 883.09 1,599.57
2018-06-30 1,435.27 882.05 1,570.18
2018-03-31 1,332.73 881.02 1,915.44
2017-12-31 1,194.79 879.98 1,792.68
2017-09-30 1,039.12 0.00 736.96
2017-06-30 911.90 62.83 609.19
2017-03-31 818.81 0.00 444.20
2016-12-31 757.36 0.00 395.95
2016-09-30 711.04 0.00 479.43
2016-06-30 670.44 0.00 396.52
2016-03-31 647.83 0.00 373.43
2015-12-31 628.03 0.00 335.88
2015-09-30 604.12 0.00 353.30
2015-06-30 595.96 0.00 337.10
2015-03-31 571.00 0.00 452.54
2014-12-31 567.39 0.00 451.28
2014-09-30 557.38 25.43 524.04
2014-06-30 558.25 19.90 498.66
2014-03-31 191.71 263.32 466.21
2013-12-31 236.67 267.72 498.78
2013-09-30 228.03 293.63 552.62
  • Weibo's level of debt (73.5%) compared to net worth is high (greater than 40%).
  • Unable to establish if Weibo's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (28.9%, greater than 20% of total debt).
  • Weibo earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Weibo's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Weibo has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Weibo's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Weibo dividends. Estimated to be 0% next year.
If you bought $2,000 of Weibo shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Weibo's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Weibo's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:WB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Global Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 0.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:WB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 4.00
2021-12-31 0.00 6.00
2020-12-31 0.00 6.00
2020-04-09

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Weibo has not reported any payouts.
  • Unable to verify if Weibo's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Weibo's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Weibo has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Weibo's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Weibo's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Weibo afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Weibo has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Weibo's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gaofei Wang
AGE 40
TENURE AS CEO 6.2 years
CEO Bio

Mr. Gaofei Wang has been the Chief Executive Officer of Weibo Corporation since February 2014. Mr. Wang has had various product and business development roles at Weibo and was promoted to General Manager in December 2012. Mr. Wang joined SINA in August 2000 and worked in the product development department until early 2004 when he transferred to the SINA Mobile division. He served as General Manager of SINA Mobile from November 2006 to November 2012. Mr. Wang holds a B.S. degree in Computer Science from Peking University and an EMBA degree from Guanghua School of Management of Peking University.

CEO Compensation
  • Insufficient data for Gaofei to compare compensation growth.
  • Insufficient data for Gaofei to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team

Gaofei Wang

TITLE
Chief Executive Officer
AGE
40
TENURE
6.2 yrs

Fei Cao

TITLE
CFO & VP of Finance
AGE
44
TENURE
2.7 yrs

Wen Li

TITLE
Investor Relations Manager
Board of Directors Tenure

Average tenure and age of the Weibo board of directors in years:

6
Average Tenure
51
Average Age
  • The tenure for the Weibo board of directors is about average.
Board of Directors

Charles Chao

TITLE
Chairman
AGE
53
TENURE
10.7 yrs

Frank Tang

TITLE
Independent Director
AGE
51
TENURE
6 yrs

Pehong Chen

TITLE
Independent Director
AGE
61
TENURE
4.3 yrs

Hong Du

TITLE
Director
AGE
47
TENURE
6.3 yrs

Daniel Zhang

TITLE
Director
AGE
47
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Weibo's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Weibo has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Weibo Corporation (NASDAQ:WB) Potentially Underrated?

Solid track record and good value WB’s cash-generating ability is outstanding, with analysts expecting its operating cash flows to flourish by 65% in the upcoming year. … NasdaqGS:WB Past and Future Earnings, August 26th 2019 WB's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. … WB's has produced operating cash levels of 0.55x total debt over the past year, which implies that WB's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

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Is Weibo Corporation's (NASDAQ:WB) ROE Of 32% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Weibo: 32% = US$623m ÷ US$1.9b (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Weibo's Debt And Its 32% ROE Although Weibo does use debt, its debt to equity ratio of 0.45 is still low. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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Is Weibo (NASDAQ:WB) Using Too Much Debt?

We note that Weibo Corporation (NASDAQ:WB) does have debt on its balance sheet. … Weibo may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. … Over the last three years, Weibo recorded free cash flow worth a fulsome 98% of its EBIT, which is stronger than we'd usually expect.

Simply Wall St -

Is There An Opportunity With Weibo Corporation's (NASDAQ:WB) 40% Undervaluation?

In this article we are going to estimate the intrinsic value of Weibo Corporation (NASDAQ:WB) by projecting its future cash flows and then discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $743.4m $903.6m $1.0b $1.0b $1.1b $1.1b $1.1b $1.1b $1.2b $1.2b Growth Rate Estimate Source Analyst x9 Analyst x8 Analyst x2 Analyst x1 Est @ 2.28% Est @ 2.42% Est @ 2.51% Est @ 2.58% Est @ 2.62% Est @ 2.65% Present Value ($, Millions) Discounted @ 8.95% $682.3 $761.2 $787.1 $737.7 $692.5 $651.0 $612.5 $576.7 $543.2 $511.8 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $6.6b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.2b × (1 + 2.7%) ÷ (8.9% – 2.7%) = US$20b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$20b ÷ ( 1 + 8.9%)10 = $8.45b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $15.01b.

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Why You Should Like Weibo Corporation’s (NASDAQ:WB) ROCE

And finally, we'll look at how its current liabilities are impacting its ROCE. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Weibo: 0.22 = US$634m ÷ (US$3.6b - US$735m) (Based on the trailing twelve months to March 2019.) Therefore, Weibo has an ROCE of 22%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

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Here's How P/E Ratios Can Help Us Understand Weibo Corporation (NASDAQ:WB)

Weibo has a price to earnings ratio of 15.81, based on the last twelve months. … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Weibo: P/E of 15.81 = $43.94 ÷ $2.78 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings.

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Will Weibo Corporation's (NASDAQ:WB) Earnings Grow In The Year Ahead?

Check out our latest analysis for Weibo How is Weibo going to perform in the near future? … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of WB's earnings growth over these next few years. … NasdaqGS:WB Past and Future Earnings, June 17th 2019 By 2022, WB's earnings should reach US$817m, from current levels of US$572m, resulting in an annual growth rate of 14%.

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If You Had Bought Weibo (NASDAQ:WB) Shares Five Years Ago You'd Have Made 123%

During the five years of share price growth, Weibo moved from a loss to profitability. … Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains. … Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too.

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Does The Hype Around Weibo Corporation's (NASDAQ:WB) Growth Justify Its May Share Price?

WB is trading at price-to-earnings (PE) ratio of 20.78x, which suggests that Weibo is undervalued based on its latest annual earnings update compared to the Interactive Media and Services average of 29.76x , and overvalued compared to the US market average ratio of 17.74x. … A PE ratio of 20.78x and expected year-on-year earnings growth of 16% give Weibo a higher PEG ratio of 1.27x. … Based on this growth, Weibo's stock can be considered slightly overvalued , based on fundamental analysis.

Simply Wall St -

Weibo Corporation (NASDAQ:WB) Has Attractive Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Weibo Corporation (NASDAQ:WB) due to its excellent fundamentals in more than one area.

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Company Info

Description

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates in two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted feeds, accounts, and trends and search products that enable its customers to promote their brands and conduct marketing activities. In addition, the company offers copyright content, such as TV channels, online video Websites, and operators with copyright content through traffic resource exchange and content traffic sharing; MCNs and other self-media to manage and provide services to content creators on Weibo, such as MCNs, unions, and e-commerce partners; other app developers an application platform, which allows users to log into third-party applications; and Weibo Wallet product that enables platform partners to conduct interest generation activities on Weibo. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation is a subsidiary of Sina Corporation.

Details
Name: Weibo Corporation
WB
Exchange: NasdaqGS
Founded: 2009
$7,997,747,347
225,035,097
Website: http://www.weibo.com
Address: Weibo Corporation
QIHAO Plaza,
8th Floor,
Beijing,
100027,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS WB ADR EA REPR ORD SHS Nasdaq Global Select US USD 17. Apr 2014
DB 2WBA ADR EA REPR ORD SHS Deutsche Boerse AG DE EUR 17. Apr 2014
BMV WB N ADR EA REPR ORD SHS Bolsa Mexicana de Valores MX MXN 17. Apr 2014
Number of employees
Current staff
Staff numbers
4,350
Weibo employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 00:48
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.