WARNER MUSIC GROUP CORP-CL A (WMG) Fundamental Analysis & Valuation

NASDAQ:WMG • US9345502036

Current stock price

28.55 USD
-0.12 (-0.42%)
At close:
28.76 USD
+0.21 (+0.74%)
After Hours:

This WMG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. WMG Profitability Analysis

1.1 Basic Checks

  • WMG had positive earnings in the past year.
  • WMG had a positive operating cash flow in the past year.
  • In the past 5 years WMG has always been profitable.
  • WMG had a positive operating cash flow in each of the past 5 years.
WMG Yearly Net Income VS EBIT VS OCF VS FCFWMG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M

1.2 Ratios

  • WMG has a better Return On Assets (2.99%) than 75.95% of its industry peers.
  • WMG has a Return On Equity of 41.52%. This is amongst the best in the industry. WMG outperforms 96.20% of its industry peers.
  • WMG has a better Return On Invested Capital (13.79%) than 93.67% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for WMG is significantly below the industry average of 159.06%.
  • The 3 year average ROIC (13.09%) for WMG is below the current ROIC(13.79%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.99%
ROE 41.52%
ROIC 13.79%
ROA(3y)4.44%
ROA(5y)4.89%
ROE(3y)92.24%
ROE(5y)320.47%
ROIC(3y)13.09%
ROIC(5y)12.66%
WMG Yearly ROA, ROE, ROICWMG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 400 600 800

1.3 Margins

  • Looking at the Profit Margin, with a value of 4.35%, WMG is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WMG has declined.
  • WMG has a Operating Margin of 14.74%. This is amongst the best in the industry. WMG outperforms 87.34% of its industry peers.
  • In the last couple of years the Operating Margin of WMG has grown nicely.
  • Looking at the Gross Margin, with a value of 45.87%, WMG is in line with its industry, outperforming 54.43% 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 RankSector Rank
OM 14.74%
PM (TTM) 4.35%
GM 45.87%
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%
WMG Yearly Profit, Operating, Gross MarginsWMG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. WMG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WMG is creating some value.
  • Compared to 1 year ago, WMG has more shares outstanding
  • WMG has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, WMG has a worse debt to assets ratio.
WMG Yearly Shares OutstandingWMG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
WMG Yearly Total Debt VS Total AssetsWMG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.2 Solvency

  • Based on the Altman-Z score of 1.66, we must say that WMG is in the distress zone and has some risk of bankruptcy.
  • WMG's Altman-Z score of 1.66 is in line compared to the rest of the industry. WMG outperforms 58.23% of its industry peers.
  • WMG has a debt to FCF ratio of 9.50. This is a negative value and a sign of low solvency as WMG would need 9.50 years to pay back of all of its debts.
  • WMG's Debt to FCF ratio of 9.50 is fine compared to the rest of the industry. WMG outperforms 70.89% of its industry peers.
  • A Debt/Equity ratio of 6.07 is on the high side and indicates that WMG has dependencies on debt financing.
  • With a Debt to Equity ratio value of 6.07, WMG is not doing good in the industry: 77.22% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 6.07
Debt/FCF 9.5
Altman-Z 1.66
ROIC/WACC1.64
WACC8.42%
WMG Yearly LT Debt VS Equity VS FCFWMG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 0.70 indicates that WMG may have some problems paying its short term obligations.
  • With a Current ratio value of 0.70, WMG is not doing good in the industry: 64.56% of the companies in the same industry are doing better.
  • WMG has a Quick Ratio of 0.70. This is a bad value and indicates that WMG is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of WMG (0.69) is worse than 63.29% of its industry peers.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.69
WMG Yearly Current Assets VS Current LiabilitesWMG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. WMG Growth Analysis

3.1 Past

  • The earnings per share for WMG have decreased strongly by -53.23% in the last year.
  • The earnings per share for WMG have been decreasing by -12.92% on average. This is quite bad
  • Looking at the last year, WMG shows a quite strong growth in Revenue. The Revenue has grown by 8.46% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 25.64% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 6.05% on average over the next years.
EPS Next Y93%
EPS Next 2Y57.05%
EPS Next 3Y40.46%
EPS Next 5Y25.64%
Revenue Next Year9.1%
Revenue Next 2Y7.54%
Revenue Next 3Y6.91%
Revenue Next 5Y6.05%

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.
  • 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.
WMG Yearly Revenue VS EstimatesWMG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
WMG Yearly EPS VS EstimatesWMG Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.5 -0.5 1 1.5 2

More info and screens

Find the best growth stocksShow best growing peers

6

4. WMG Valuation Analysis

4.1 Price/Earnings Ratio

  • WMG is valuated quite expensively with a Price/Earnings ratio of 49.22.
  • WMG's Price/Earnings ratio is a bit cheaper when compared to the industry. WMG is cheaper than 69.62% 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 26.91.
  • Based on the Price/Forward Earnings ratio of 16.54, the valuation of WMG can be described as correct.
  • Based on the Price/Forward Earnings ratio, WMG is valued cheaper than 88.61% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of WMG to the average of the S&P500 Index (21.99), we can say WMG is valued slightly cheaper.
Industry RankSector Rank
PE 49.22
Fwd PE 16.54
WMG Price Earnings VS Forward Price EarningsWMG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • WMG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WMG is cheaper than 78.48% of the companies in the same industry.
  • 70.89% of the companies in the same industry are more expensive than WMG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 32.5
EV/EBITDA 13.28
WMG Per share dataWMG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

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.
  • WMG's earnings are expected to grow with 40.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y57.05%
EPS Next 3Y40.46%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. WMG Dividend Analysis

5.1 Amount

  • WMG has a Yearly Dividend Yield of 2.62%.
  • Compared to an average industry Dividend Yield of 10.57, WMG pays a better dividend. On top of this WMG pays more dividend than 94.94% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, WMG pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.62%

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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.77%
Div Incr Years5
Div Non Decr Years5
WMG Yearly Dividends per shareWMG Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • WMG pays out 130.10% 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.
DP130.1%
EPS Next 2Y57.05%
EPS Next 3Y40.46%
WMG Yearly Income VS Free CF VS DividendWMG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M -400M 600M 800M
WMG Dividend Payout.WMG Dividend Payout, showing the Payout Ratio.WMG Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

WMG Fundamentals: All Metrics, Ratios and Statistics

WARNER MUSIC GROUP CORP-CL A

NASDAQ:WMG (4/28/2026, 8:05:47 PM)

After market: 28.76 +0.21 (+0.74%)

28.55

-0.12 (-0.42%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners105.42%
Inst Owner Change-0.13%
Ins Owners0.92%
Ins Owner Change6.34%
Market Cap14.95B
Revenue(TTM)6.88B
Net Income(TTM)299.00M
Analysts81.67
Price Target37.6 (31.7%)
Short Float %6.18%
Short Ratio4.17
Dividend
Industry RankSector Rank
Dividend Yield 2.62%
Yearly Dividend0.74
Dividend Growth(5Y)1.77%
DP130.1%
Div Incr Years5
Div Non Decr Years5
Ex-Date02-18
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.57%
Min EPS beat(2)-37.42%
Max EPS beat(2)-9.72%
EPS beat(4)0
Avg EPS beat(4)-58.18%
Min EPS beat(4)-110.91%
Max EPS beat(4)-9.72%
EPS beat(8)3
Avg EPS beat(8)-23.63%
EPS beat(12)5
Avg EPS beat(12)-19.41%
EPS beat(16)7
Avg EPS beat(16)-7.59%
Revenue beat(2)2
Avg Revenue beat(2)6.37%
Min Revenue beat(2)2.74%
Max Revenue beat(2)10.01%
Revenue beat(4)3
Avg Revenue beat(4)3.66%
Min Revenue beat(4)-3.26%
Max Revenue beat(4)10.01%
Revenue beat(8)4
Avg Revenue beat(8)1.72%
Revenue beat(12)7
Avg Revenue beat(12)2.01%
Revenue beat(16)10
Avg Revenue beat(16)1.73%
PT rev (1m)-1.96%
PT rev (3m)-2.05%
EPS NQ rev (1m)1.58%
EPS NQ rev (3m)-2.38%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-2.35%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.68%
Valuation
Industry RankSector Rank
PE 49.22
Fwd PE 16.54
P/S 2.17
P/FCF 32.5
P/OCF 19.49
P/B 20.76
P/tB N/A
EV/EBITDA 13.28
EPS(TTM)0.58
EY2.03%
EPS(NY)1.73
Fwd EY6.05%
FCF(TTM)0.88
FCFY3.08%
OCF(TTM)1.46
OCFY5.13%
SpS13.14
BVpS1.38
TBVpS-8
PEG (NY)0.53
PEG (5Y)N/A
Graham Number4.2365 (-85.16%)
Profitability
Industry RankSector Rank
ROA 2.99%
ROE 41.52%
ROCE 17.79%
ROIC 13.79%
ROICexc 15.88%
ROICexgc 1828.08%
OM 14.74%
PM (TTM) 4.35%
GM 45.87%
FCFM 6.69%
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-Score5
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 6.07
Debt/FCF 9.5
Debt/EBITDA 3.12
Cap/Depr 78.92%
Cap/Sales 4.46%
Interest Coverage 5.42
Cash Conversion 54.67%
Profit Quality 153.85%
Current Ratio 0.7
Quick Ratio 0.69
Altman-Z 1.66
F-Score5
WACC8.42%
ROIC/WACC1.64
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 Y93%
EPS Next 2Y57.05%
EPS Next 3Y40.46%
EPS Next 5Y25.64%
Revenue 1Y (TTM)8.46%
Revenue growth 3Y4.25%
Revenue growth 5Y8.49%
Sales Q2Q%10.44%
Revenue Next Year9.1%
Revenue Next 2Y7.54%
Revenue Next 3Y6.91%
Revenue Next 5Y6.05%
EBIT growth 1Y16.28%
EBIT growth 3Y9.13%
EBIT growth 5YN/A
EBIT Next Year96.34%
EBIT Next 3Y33.18%
EBIT Next 5Y20.75%
FCF growth 1Y-7.26%
FCF growth 3Y-6.41%
FCF growth 5Y0.18%
OCF growth 1Y-0.52%
OCF growth 3Y-3.11%
OCF growth 5Y7.83%

WARNER MUSIC GROUP CORP-CL A / WMG Fundamental Analysis FAQ

What is the fundamental rating for WMG stock?

ChartMill assigns a fundamental rating of 5 / 10 to WMG.


What is the valuation status for 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.


Can you provide the profitability details for WARNER MUSIC GROUP CORP-CL A?

WARNER MUSIC GROUP CORP-CL A (WMG) has a profitability rating of 7 / 10.


What are the PE and PB ratios of WARNER MUSIC GROUP CORP-CL A (WMG) stock?

The Price/Earnings (PE) ratio for WARNER MUSIC GROUP CORP-CL A (WMG) is 49.22 and the Price/Book (PB) ratio is 20.76.


How financially healthy is WARNER MUSIC GROUP CORP-CL A?

The financial health rating of WARNER MUSIC GROUP CORP-CL A (WMG) is 1 / 10.