29.78 USD
-1.02 (-3.31%)
At close: Feb 11, 2026
29.78 USD
0 (0%)
After Hours: 2/11/2026, 8:00:02 PM
Overall WMG gets a fundamental rating of 5 out of 10. We evaluated WMG against 80 industry peers in the Entertainment industry. WMG scores excellent on profitability, but there are concerns on its financial health. WMG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year WMG was profitable.
- WMG had a positive operating cash flow in the past year.
- 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
- With a decent Return On Assets value of 3.64%, WMG is doing good in the industry, outperforming 78.75% of the companies in the same industry.
- The Return On Equity of WMG (55.33%) is better than 97.50% of its industry peers.
- The Return On Invested Capital of WMG (12.78%) is better than 91.25% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for WMG is above the industry average of 8.67%.
| 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
- The Profit Margin of WMG (5.34%) is better than 75.00% of its industry peers.
- In the last couple of years the Profit Margin of WMG has declined.
- The Operating Margin of WMG (13.84%) is better than 82.50% of its industry peers.
- WMG's Operating Margin has improved in the last couple of years.
- WMG's Gross Margin of 45.85% is in line compared to the rest of the industry. WMG outperforms 53.75% of its industry peers.
- WMG's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WMG is creating some value.
- The number of shares outstanding for WMG has been increased compared to 1 year ago.
- The number of shares outstanding for WMG has been increased compared to 5 years ago.
- Compared to 1 year ago, WMG has a worse debt to assets ratio.
2.2 Solvency
- WMG has an Altman-Z score of 1.65. This is a bad value and indicates that WMG is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.65, WMG is in line with its industry, outperforming 58.75% of the companies in the same industry.
- The Debt to FCF ratio of WMG is 12.80, which is on the high side as it means it would take WMG, 12.80 years of fcf income to pay off all of its debts.
- WMG's Debt to FCF ratio of 12.80 is in line compared to the rest of the industry. WMG outperforms 60.00% 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.
- WMG has a worse Debt to Equity ratio (6.75) than 78.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 12.8 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.39
WACC9.21%
2.3 Liquidity
- A Current Ratio of 0.66 indicates that WMG may have some problems paying its short term obligations.
- WMG's Current ratio of 0.66 is on the low side compared to the rest of the industry. WMG is outperformed by 71.25% of its industry peers.
- WMG has a Quick Ratio of 0.66. This is a bad value and indicates that WMG is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.64, WMG is doing worse than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- WMG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.23%.
- Measured over the past years, WMG shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.92% on average per year.
- The Revenue has grown by 8.46% in the past year. This is quite good.
- Measured over the past years, WMG shows a quite strong growth in Revenue. The Revenue has been growing by 8.49% on average per year.
EPS 1Y (TTM)-53.23%
EPS 3Y-12.92%
EPS 5YN/A
EPS Q2Q%-26.67%
Revenue 1Y (TTM)8.46%
Revenue growth 3Y4.25%
Revenue growth 5Y8.49%
Sales Q2Q%10.44%
3.2 Future
- WMG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.64% yearly.
- The Revenue is expected to grow by 6.05% on average over the next years.
EPS Next Y98.82%
EPS Next 2Y56.49%
EPS Next 3Y40.18%
EPS Next 5Y25.64%
Revenue Next Year7.5%
Revenue Next 2Y6.69%
Revenue Next 3Y6.38%
Revenue Next 5Y6.05%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 51.34, WMG can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of WMG indicates a somewhat cheap valuation: WMG is cheaper than 71.25% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.18. WMG is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 17.37 indicates a rather expensive valuation of WMG.
- 83.75% of the companies in the same industry are more expensive than WMG, based on the Price/Forward Earnings ratio.
- WMG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.34 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
- WMG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WMG is cheaper than 68.75% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WMG indicates a somewhat cheap valuation: WMG is cheaper than 66.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.62 | ||
| EV/EBITDA | 14.87 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of WMG may justify a higher PE ratio.
- A more expensive valuation may be justified as WMG's earnings are expected to grow with 40.18% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y56.49%
EPS Next 3Y40.18%
5. Dividend
5.1 Amount
- WMG has a Yearly Dividend Yield of 2.54%. Purely for dividend investing, there may be better candidates out there.
- WMG's Dividend Yield is rather good when compared to the industry average which is at 7.58. WMG pays more dividend than 92.50% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, WMG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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
- WMG pays out 106.98% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of WMG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP106.98%
EPS Next 2Y56.49%
EPS Next 3Y40.18%
29.78
-1.02 (-3.31%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners109.12%
Inst Owner Change-2.88%
Ins Owners1.42%
Ins Owner Change6.71%
Market Cap15.56B
Revenue(TTM)6.88B
Net Income(TTM)358.00M
Analysts80.83
Price Target38.3 (28.61%)
Short Float %4.48%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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)-0.23%
PT rev (3m)1.07%
EPS NQ rev (1m)-1.4%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.34 | ||
| Fwd PE | 17.37 | ||
| P/S | 2.32 | ||
| P/FCF | 45.62 | ||
| P/OCF | 23.04 | ||
| P/B | 24.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.87 |
EPS(TTM)0.58
EY1.95%
EPS(NY)1.71
Fwd EY5.76%
FCF(TTM)0.65
FCFY2.19%
OCF(TTM)1.29
OCFY4.34%
SpS12.84
BVpS1.24
TBVpS-8.22
PEG (NY)0.52
PEG (5Y)N/A
Graham Number4.02
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 | 1.65 |
F-Score4
WACC9.21%
ROIC/WACC1.39
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)-53.23%
EPS 3Y-12.92%
EPS 5YN/A
EPS Q2Q%-26.67%
EPS Next Y98.82%
EPS Next 2Y56.49%
EPS Next 3Y40.18%
EPS Next 5Y25.64%
Revenue 1Y (TTM)8.46%
Revenue growth 3Y4.25%
Revenue growth 5Y8.49%
Sales Q2Q%10.44%
Revenue Next Year7.5%
Revenue Next 2Y6.69%
Revenue Next 3Y6.38%
Revenue Next 5Y6.05%
EBIT growth 1Y-4.13%
EBIT growth 3Y9.13%
EBIT growth 5YN/A
EBIT Next Year91.85%
EBIT Next 3Y32.31%
EBIT Next 5Y20.75%
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 5 / 10 to WMG.
What is the valuation status of WARNER MUSIC GROUP CORP-CL A (WMG) stock?
ChartMill assigns a valuation rating of 6 / 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 98.82% 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%.