WW - WW International: Sizing Up This Weight-Loss Stalwart

• WW management got ahead of their skis by building up expectations that the business was evolving beyond its usual seasonality. When this didn't happen, the stock tanked.
• They have a sizeable amount of net debt, at 4.3x EBITDA, and face intense competition from DIY consumers and in the digital space.
• But they get some differentiation with their industry leadership, the in-person rapport of the brick-and-mortar studio business, and the community aspect around that.
• Digital subscriptions were up 6% in 2021Q2 while studio subscriptions were still down 43% year-over-year. So there's a pandemic reopening dimension to WW.
• WW looks oversold at sub-$20 and a forward P/E of ~10.3x, and good enough for a speculative entry point for a 1-2 year horizon.

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