29.83 USD
-0.12 (-0.4%)
29.83 USD
0 (0%)
WMG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a Return On Assets of 3.64%. This is in the better half of the industry: WMG outperforms 77.50% of its industry peers.
WMG's Return On Equity of 55.33% is amongst the best of the industry. WMG outperforms 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 8.73%.
| 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.
With an excellent Operating Margin value of 13.84%, WMG belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
WMG's Operating Margin has improved in the last couple of years.
WMG has a Gross Margin (45.85%) which 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.
WMG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WMG has been increased compared to 5 years ago.
WMG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that WMG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WMG (1.65) 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.
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 | 1.65 |
ROIC/WACC1.37
WACC9.33%
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.
The Current ratio of WMG (0.66) is worse than 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 68.75% 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.
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
The Earnings Per Share is expected to grow by 25.18% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.95% on average over the next years.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 42.61 indicates a quite expensive valuation of WMG.
Compared to the rest of the industry, the Price/Earnings ratio of WMG indicates a somewhat cheap valuation: WMG is cheaper than 73.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, WMG is valued quite expensively.
The Price/Forward Earnings ratio is 21.25, which indicates a rather expensive current valuation of WMG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WMG indicates a rather cheap valuation: WMG is cheaper than 82.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. WMG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.61 | ||
| Fwd PE | 21.25 |
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.
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 | 45.7 | ||
| EV/EBITDA | 14.89 |
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.
The decent profitability rating of WMG may justify a higher PE ratio.
WMG's earnings are expected to grow with 39.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y56.19%
EPS Next 3Y39.44%
5. Dividend
5.1 Amount
WMG has a Yearly Dividend Yield of 2.39%. 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 7.66. WMG pays more dividend than 92.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, 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
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 2Y56.19%
EPS Next 3Y39.44%
29.83
-0.12 (-0.4%)
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 Cap15.58B
Revenue(TTM)6.71B
Net Income(TTM)358.00M
Analysts80.83
Price TargetN/A
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)1.27%
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 | 42.61 | ||
| Fwd PE | 21.25 | ||
| P/S | 2.32 | ||
| P/FCF | 45.7 | ||
| P/OCF | 23.09 | ||
| P/B | 24.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.89 |
EPS(TTM)0.7
EY2.35%
EPS(NY)1.4
Fwd EY4.71%
FCF(TTM)0.65
FCFY2.19%
OCF(TTM)1.29
OCFY4.33%
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 | 1.65 |
F-Score4
WACC9.33%
ROIC/WACC1.37
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 42.61 and the Price/Book (PB) ratio is 24.09.
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.