31.27 USD
-0.24 (-0.76%)
31.27 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WMG. WMG was compared to 80 industry peers in the Entertainment industry. While WMG belongs to the best of the industry regarding profitability, there are concerns on its financial health. WMG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- WMG had positive earnings in the past year.
- In the past year WMG had a positive cash flow from operations.
- In the past 5 years WMG has always been profitable.
- Each year in the past 5 years WMG had a positive operating cash flow.
1.2 Ratios
- WMG's Return On Assets of 3.64% is fine compared to the rest of the industry. WMG outperforms 78.75% of its industry peers.
- Looking at the Return On Equity, with a value of 55.33%, WMG belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.78%, WMG belongs to the top of the industry, outperforming 91.25% of the companies in the same industry.
- WMG had an Average Return On Invested Capital over the past 3 years of 13.09%. This is above the industry average of 8.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 55.33% | ||
| ROIC | 12.78% |
ROA(3y)4.44%
ROA(5y)4.89%
ROE(3y)92.24%
ROE(5y)320.47%
ROIC(3y)13.09%
ROIC(5y)12.66%
1.3 Margins
- WMG's Profit Margin of 5.34% is fine compared to the rest of the industry. WMG outperforms 73.75% of its industry peers.
- WMG's Profit Margin has declined in the last couple of years.
- WMG has a better Operating Margin (13.84%) than 81.25% of its industry peers.
- WMG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 45.85%, WMG is in line with its industry, outperforming 53.75% of the companies in the same industry.
- In the last couple of years the Gross Margin of WMG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.84% | ||
| PM (TTM) | 5.34% | ||
| GM | 45.85% |
OM growth 3Y4.68%
OM growth 5YN/A
PM growth 3Y-16.34%
PM growth 5YN/A
GM growth 3Y-1.49%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
- WMG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, WMG has more shares outstanding
- Compared to 5 years ago, WMG has more shares outstanding
- WMG has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.71, we must say that WMG is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.71, WMG is in line with its industry, outperforming 57.50% of the companies in the same industry.
- WMG has a debt to FCF ratio of 12.80. This is a negative value and a sign of low solvency as WMG would need 12.80 years to pay back of all of its debts.
- WMG's Debt to FCF ratio of 12.80 is fine compared to the rest of the industry. WMG outperforms 61.25% of its industry peers.
- WMG has a Debt/Equity ratio of 6.75. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 6.75, WMG is not doing good in the industry: 78.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 12.8 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.3
WACC9.85%
2.3 Liquidity
- A Current Ratio of 0.66 indicates that WMG may have some problems paying its short term obligations.
- WMG has a Current ratio of 0.66. This is in the lower half of the industry: WMG underperforms 71.25% of its industry peers.
- A Quick Ratio of 0.64 indicates that WMG may have some problems paying its short term obligations.
- WMG has a worse Quick ratio (0.64) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- The earnings per share for WMG have decreased strongly by -37.50% in the last year.
- WMG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.92% yearly.
- The Revenue has been growing slightly by 4.37% in the past year.
- WMG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.49% yearly.
EPS 1Y (TTM)-37.5%
EPS 3Y-12.92%
EPS 5YN/A
EPS Q2Q%162.5%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y4.25%
Revenue growth 5Y8.49%
Sales Q2Q%14.6%
3.2 Future
- WMG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.18% yearly.
- The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y100.37%
EPS Next 2Y56.74%
EPS Next 3Y39.53%
EPS Next 5Y25.18%
Revenue Next Year7.28%
Revenue Next 2Y6.57%
Revenue Next 3Y6.09%
Revenue Next 5Y5.95%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 44.67, the valuation of WMG can be described as expensive.
- Based on the Price/Earnings ratio, WMG is valued a bit cheaper than 75.00% of the companies in the same industry.
- WMG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.33.
- WMG is valuated rather expensively with a Price/Forward Earnings ratio of 22.29.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WMG indicates a somewhat cheap valuation: WMG is cheaper than 80.00% of the companies listed in the same industry.
- WMG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.67 | ||
| Fwd PE | 22.29 |
4.2 Price Multiples
- 66.25% of the companies in the same industry are more expensive than WMG, based on the Enterprise Value to EBITDA ratio.
- 67.50% of the companies in the same industry are more expensive than WMG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.9 | ||
| EV/EBITDA | 15.56 |
4.3 Compensation for Growth
- WMG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- WMG has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as WMG's earnings are expected to grow with 39.53% in the coming years.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y56.74%
EPS Next 3Y39.53%
5. Dividend
5.1 Amount
- WMG has a Yearly Dividend Yield of 2.55%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 8.69, WMG pays a better dividend. On top of this WMG pays more dividend than 92.50% of the companies listed in the same industry.
- WMG's Dividend Yield is a higher than the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
- The dividend of WMG has a limited annual growth rate of 1.77%.
- WMG has been paying a dividend for over 5 years, so it has already some track record.
- WMG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)1.77%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 106.98% of the earnings are spent on dividend by WMG. This is not a sustainable payout ratio.
- WMG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP106.98%
EPS Next 2Y56.74%
EPS Next 3Y39.53%
31.27
-0.24 (-0.76%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-20 2025-11-20/bmo
Earnings (Next)02-05 2026-02-05/bmo
Inst Owners109.12%
Inst Owner Change-0.02%
Ins Owners1.42%
Ins Owner Change6.71%
Market Cap16.34B
Revenue(TTM)6.71B
Net Income(TTM)358.00M
Analysts80.87
Price Target38.39 (22.77%)
Short Float %4.81%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend0.74
Dividend Growth(5Y)1.77%
DP106.98%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-74.17%
Min EPS beat(2)-110.91%
Max EPS beat(2)-37.42%
EPS beat(4)1
Avg EPS beat(4)-47.97%
Min EPS beat(4)-110.91%
Max EPS beat(4)31.13%
EPS beat(8)3
Avg EPS beat(8)-25.48%
EPS beat(12)5
Avg EPS beat(12)-19.63%
EPS beat(16)8
Avg EPS beat(16)-5.32%
Revenue beat(2)2
Avg Revenue beat(2)7.59%
Min Revenue beat(2)5.17%
Max Revenue beat(2)10.01%
Revenue beat(4)2
Avg Revenue beat(4)2.85%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)10.01%
Revenue beat(8)4
Avg Revenue beat(8)1.82%
Revenue beat(12)6
Avg Revenue beat(12)1.59%
Revenue beat(16)10
Avg Revenue beat(16)2%
PT rev (1m)-1.02%
PT rev (3m)3.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.67 | ||
| Fwd PE | 22.29 | ||
| P/S | 2.44 | ||
| P/FCF | 47.9 | ||
| P/OCF | 24.2 | ||
| P/B | 25.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.56 |
EPS(TTM)0.7
EY2.24%
EPS(NY)1.4
Fwd EY4.49%
FCF(TTM)0.65
FCFY2.09%
OCF(TTM)1.29
OCFY4.13%
SpS12.84
BVpS1.24
TBVpS-8.22
PEG (NY)0.45
PEG (5Y)N/A
Graham Number4.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.64% | ||
| ROE | 55.33% | ||
| ROCE | 16.49% | ||
| ROIC | 12.78% | ||
| ROICexc | 14.12% | ||
| ROICexgc | 461.16% | ||
| OM | 13.84% | ||
| PM (TTM) | 5.34% | ||
| GM | 45.85% | ||
| FCFM | 5.08% |
ROA(3y)4.44%
ROA(5y)4.89%
ROE(3y)92.24%
ROE(5y)320.47%
ROIC(3y)13.09%
ROIC(5y)12.66%
ROICexc(3y)14.86%
ROICexc(5y)14.42%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)16.89%
ROCE(5y)16.33%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-0.38%
ROICexc growth 5YN/A
OM growth 3Y4.68%
OM growth 5YN/A
PM growth 3Y-16.34%
PM growth 5YN/A
GM growth 3Y-1.49%
GM growth 5Y-0.8%
F-Score4
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 12.8 | ||
| Debt/EBITDA | 3.35 | ||
| Cap/Depr | 88.83% | ||
| Cap/Sales | 4.98% | ||
| Interest Coverage | 5.56 | ||
| Cash Conversion | 51.76% | ||
| Profit Quality | 95.25% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.71 |
F-Score4
WACC9.85%
ROIC/WACC1.3
Cap/Depr(3y)84.69%
Cap/Depr(5y)107.57%
Cap/Sales(3y)4.56%
Cap/Sales(5y)6%
Profit Quality(3y)101.59%
Profit Quality(5y)80.52%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.5%
EPS 3Y-12.92%
EPS 5YN/A
EPS Q2Q%162.5%
EPS Next Y100.37%
EPS Next 2Y56.74%
EPS Next 3Y39.53%
EPS Next 5Y25.18%
Revenue 1Y (TTM)4.37%
Revenue growth 3Y4.25%
Revenue growth 5Y8.49%
Sales Q2Q%14.6%
Revenue Next Year7.28%
Revenue Next 2Y6.57%
Revenue Next 3Y6.09%
Revenue Next 5Y5.95%
EBIT growth 1Y-4.13%
EBIT growth 3Y9.13%
EBIT growth 5YN/A
EBIT Next Year91.5%
EBIT Next 3Y32.51%
EBIT Next 5Y20.4%
FCF growth 1Y-24.39%
FCF growth 3Y-6.41%
FCF growth 5Y0.18%
OCF growth 1Y-10.48%
OCF growth 3Y-3.11%
OCF growth 5Y7.83%
WARNER MUSIC GROUP CORP-CL A / WMG FAQ
What is the fundamental rating for WMG stock?
ChartMill assigns a fundamental rating of 4 / 10 to WMG.
What is the valuation status of WARNER MUSIC GROUP CORP-CL A (WMG) stock?
ChartMill assigns a valuation rating of 5 / 10 to WARNER MUSIC GROUP CORP-CL A (WMG). This can be considered as Fairly Valued.
What is the profitability of WMG stock?
WARNER MUSIC GROUP CORP-CL A (WMG) has a profitability rating of 7 / 10.
What is the earnings growth outlook for WARNER MUSIC GROUP CORP-CL A?
The Earnings per Share (EPS) of WARNER MUSIC GROUP CORP-CL A (WMG) is expected to grow by 100.37% in the next year.
How sustainable is the dividend of WARNER MUSIC GROUP CORP-CL A (WMG) stock?
The dividend rating of WARNER MUSIC GROUP CORP-CL A (WMG) is 5 / 10 and the dividend payout ratio is 106.98%.