30.47 USD
+0.25 (+0.83%)
30.47 USD
0 (0%)
Overall WMG gets a fundamental rating of 4 out of 10. We evaluated WMG against 80 industry peers in the Entertainment industry. While WMG has a great profitability rating, there are quite some concerns on its financial health. WMG has a correct valuation and a medium growth rate.
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.
WMG had positive earnings in each of the past 5 years.
Each year in the past 5 years WMG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WMG (3.64%) is better than 77.50% of its industry peers.
The Return On Equity of WMG (55.33%) is better than 97.50% of its industry peers.
WMG has a Return On Invested Capital of 12.78%. This is amongst the best in the industry. WMG outperforms 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 8.70%.
| 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
The Profit Margin of WMG (5.34%) is better than 73.75% of its industry peers.
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.
The Gross Margin of WMG (45.85%) is comparable to the rest of the 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.
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 1.66. 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 (1.66) which is comparable to the rest of the 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 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.
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 | 1.66 |
ROIC/WACC1.28
WACC10%
2.3 Liquidity
WMG has a Current 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.
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.
A Quick Ratio of 0.64 indicates that WMG may have some problems paying its short term obligations.
The Quick ratio of WMG (0.64) is worse 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.
WMG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.37%.
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)-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
The Earnings Per Share is expected to grow by 25.18% on average over the next years. This is a very strong growth
WMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.95% yearly.
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
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
The Price/Earnings ratio is 43.53, which means the current valuation is very expensive for WMG.
Based on the Price/Earnings ratio, WMG is valued a bit cheaper than the industry average as 73.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.84, WMG is valued quite expensively.
Based on the Price/Forward Earnings ratio of 21.72, the valuation of WMG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, WMG is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
WMG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.53 | ||
| Fwd PE | 21.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WMG is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, WMG is valued a bit cheaper than the industry average as 66.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.68 | ||
| EV/EBITDA | 15.05 |
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 39.53% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y56.74%
EPS Next 3Y39.53%
5. Dividend
5.1 Amount
WMG has a Yearly Dividend Yield of 2.39%.
WMG's Dividend Yield is rather good when compared to the industry average which is at 8.00. WMG pays more dividend than 92.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, WMG has a dividend comparable with the average S&P500 company.
| 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.
The dividend of WMG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP106.98%
EPS Next 2Y56.74%
EPS Next 3Y39.53%
30.47
+0.25 (+0.83%)
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 Cap15.92B
Revenue(TTM)6.71B
Net Income(TTM)358.00M
Analysts80.83
Price Target38.39 (25.99%)
Short Float %4.81%
Short Ratio3.08
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)0.23%
PT rev (3m)3.61%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)3.13%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)1.48%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.53 | ||
| Fwd PE | 21.72 | ||
| P/S | 2.37 | ||
| P/FCF | 46.68 | ||
| P/OCF | 23.58 | ||
| P/B | 24.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.05 |
EPS(TTM)0.7
EY2.3%
EPS(NY)1.4
Fwd EY4.6%
FCF(TTM)0.65
FCFY2.14%
OCF(TTM)1.29
OCFY4.24%
SpS12.84
BVpS1.24
TBVpS-8.22
PEG (NY)0.43
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 | 1.66 |
F-Score4
WACC10%
ROIC/WACC1.28
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.
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 43.53 and the Price/Book (PB) ratio is 24.6.
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 100.37% in the next year.