29.35 USD
+0.01 (+0.03%)
29.35 USD
0 (0%)
Taking everything into account, WMG scores 4 out of 10 in our fundamental rating. 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
In the past year WMG was profitable.
In the past year WMG had a positive cash flow from operations.
WMG had positive earnings in each of the past 5 years.
WMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.64%, WMG is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
WMG's Return On Equity of 55.33% is amongst the best of the industry. WMG outperforms 97.50% of its industry peers.
WMG has a better Return On Invested Capital (12.78%) than 91.25% of its industry peers.
WMG had an Average Return On Invested Capital over the past 3 years of 13.09%. This is above the industry average of 8.91%.
| 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
With a decent Profit Margin value of 5.34%, WMG is doing good in the industry, outperforming 73.75% of the companies in the same industry.
In the last couple of years the Profit Margin of WMG has declined.
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.
With a Gross Margin value of 45.85%, WMG perfoms like the industry average, outperforming 55.00% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WMG is still creating some value.
The number of shares outstanding for WMG has been increased compared to 1 year ago.
WMG has more shares outstanding than it did 5 years ago.
WMG has a worse debt/assets ratio than last year.
2.2 Solvency
WMG has an Altman-Z score of 1.63. This is a bad value and indicates that WMG is not financially healthy and even has some risk of bankruptcy.
WMG has a Altman-Z score (1.63) which is in line with its industry peers.
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.
The Debt to FCF ratio of WMG (12.80) is better than 61.25% of its industry peers.
A Debt/Equity ratio of 6.75 is on the high side and indicates that WMG has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.75, WMG is doing worse than 78.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.75 | ||
| Debt/FCF | 12.8 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.63
WACC7.83%
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.
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.
With a Quick ratio value of 0.64, WMG is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
| 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.
The earnings per share for WMG have been decreasing by -12.92% on average. This is quite bad
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.
Based on estimates for the next years, WMG will show a small growth in Revenue. The Revenue will grow by 5.95% on average per year.
EPS Next Y100.55%
EPS Next 2Y56.19%
EPS Next 3Y39.44%
EPS Next 5Y25.18%
Revenue Next Year7.28%
Revenue Next 2Y6.57%
Revenue Next 3Y6.07%
Revenue Next 5Y5.95%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 41.93 indicates a quite expensive valuation of WMG.
73.75% of the companies in the same industry are more expensive than WMG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.38, WMG is valued quite expensively.
Based on the Price/Forward Earnings ratio of 20.91, the valuation of WMG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WMG is valued cheaper than 82.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, WMG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.93 | ||
| Fwd PE | 20.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WMG indicates a somewhat cheap valuation: WMG is cheaper than 68.75% of the companies listed in the same industry.
66.25% 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 | 44.96 | ||
| EV/EBITDA | 14.69 |
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 39.44% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y56.19%
EPS Next 3Y39.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.39%, WMG has a reasonable but not impressive dividend return.
WMG's Dividend Yield is rather good when compared to the industry average which is at 7.71. WMG pays more dividend than 92.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, WMG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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.
WMG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP106.98%
EPS Next 2Y56.19%
EPS Next 3Y39.44%
29.35
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners108.84%
Inst Owner Change3.94%
Ins Owners1.35%
Ins Owner Change0.82%
Market Cap15.33B
Revenue(TTM)6.71B
Net Income(TTM)358.00M
Analysts80.83
Price Target38.79 (32.16%)
Short Float %4.55%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend0.74
Dividend Growth(5Y)1.77%
DP106.98%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)2.35%
PT rev (3m)4.68%
EPS NQ rev (1m)-0.92%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)3.22%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)1.42%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)1.48%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.93 | ||
| Fwd PE | 20.91 | ||
| P/S | 2.29 | ||
| P/FCF | 44.96 | ||
| P/OCF | 22.71 | ||
| P/B | 23.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.69 |
EPS(TTM)0.7
EY2.39%
EPS(NY)1.4
Fwd EY4.78%
FCF(TTM)0.65
FCFY2.22%
OCF(TTM)1.29
OCFY4.4%
SpS12.84
BVpS1.24
TBVpS-8.22
PEG (NY)0.42
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 | 1.63 |
F-Score4
WACC7.83%
ROIC/WACC1.63
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 Y100.55%
EPS Next 2Y56.19%
EPS Next 3Y39.44%
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 3Y6.07%
Revenue Next 5Y5.95%
EBIT growth 1Y-4.13%
EBIT growth 3Y9.13%
EBIT growth 5YN/A
EBIT Next Year91.5%
EBIT Next 3Y32.15%
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.
Can you provide the valuation status for WARNER MUSIC GROUP CORP-CL A?
ChartMill assigns a valuation rating of 6 / 10 to WARNER MUSIC GROUP CORP-CL A (WMG). This can be considered as Fairly Valued.
How profitable is WARNER MUSIC GROUP CORP-CL A (WMG) stock?
WARNER MUSIC GROUP CORP-CL A (WMG) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for WMG stock?
The Price/Earnings (PE) ratio for WARNER MUSIC GROUP CORP-CL A (WMG) is 41.93 and the Price/Book (PB) ratio is 23.7.
Can you provide the expected EPS growth for WMG stock?
The Earnings per Share (EPS) of WARNER MUSIC GROUP CORP-CL A (WMG) is expected to grow by 100.55% in the next year.