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

NASDAQ:WMG • US9345502036

Current stock price

29.31 USD
-0.17 (-0.58%)
At close:
29.31 USD
0 (0%)
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.
  • In the past year WMG had a positive cash flow from operations.
  • Each year in the past 5 years WMG has been profitable.
  • Each year in the past 5 years WMG had a positive operating cash flow.
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's Return On Assets of 2.99% is fine compared to the rest of the industry. WMG outperforms 75.95% of its industry peers.
  • Looking at the Return On Equity, with a value of 41.52%, WMG belongs to the top of the industry, outperforming 96.20% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 13.79%, WMG belongs to the top of the industry, outperforming 93.67% of the companies in the same industry.
  • WMG had an Average Return On Invested Capital over the past 3 years of 13.09%. This is significantly below the industry average of 159.07%.
  • 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

  • The Profit Margin of WMG (4.35%) is better than 74.68% of its industry peers.
  • WMG's Profit Margin has declined in the last couple of years.
  • WMG has a Operating Margin of 14.74%. This is amongst the best in the industry. WMG outperforms 87.34% of its industry peers.
  • WMG's Operating Margin has improved in the last couple of years.
  • WMG's Gross Margin of 45.87% is in line compared to the rest of the industry. WMG outperforms 54.43% of its industry peers.
  • 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

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2

2. WMG Health Analysis

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.
  • Compared to 1 year ago, WMG has more shares outstanding
  • WMG has more shares outstanding than it did 5 years ago.
  • WMG has a worse debt/assets ratio than last year.
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

  • WMG has an Altman-Z score of 1.69. This is a bad value and indicates that WMG is not financially healthy and even has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.69, WMG is doing good in the industry, outperforming 60.76% of the companies in the same industry.
  • The Debt to FCF ratio of WMG is 9.50, which is on the high side as it means it would take WMG, 9.50 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 9.50, WMG is in the better half of the industry, outperforming 72.15% of the companies in the same industry.
  • WMG has a Debt/Equity ratio of 6.07. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of WMG (6.07) is worse than 77.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.07
Debt/FCF 9.5
Altman-Z 1.69
ROIC/WACC1.62
WACC8.49%
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.
  • WMG has a Current ratio of 0.70. This is in the lower half of the industry: WMG underperforms 64.56% of its industry peers.
  • A Quick Ratio of 0.69 indicates that WMG may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.69, WMG is not doing good in the industry: 63.29% of the companies in the same industry are doing better.
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

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5

3. WMG Growth Analysis

3.1 Past

  • The earnings per share for WMG have decreased strongly by -53.23% in the last year.
  • 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.
  • WMG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.46%.
  • 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)-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

  • Based on estimates for the next years, WMG will show a very strong growth in Earnings Per Share. The EPS will grow by 25.64% on average per year.
  • WMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.05% yearly.
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

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6

4. WMG Valuation Analysis

4.1 Price/Earnings Ratio

  • WMG is valuated quite expensively with a Price/Earnings ratio of 50.53.
  • Based on the Price/Earnings ratio, WMG is valued a bit cheaper than 69.62% of the companies in the same industry.
  • WMG is valuated expensively when we compare the Price/Earnings ratio to 27.66, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 16.98, WMG is valued correctly.
  • WMG's Price/Forward Earnings ratio is rather cheap when compared to the industry. WMG is cheaper than 87.34% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of WMG to the average of the S&P500 Index (38.00), we can say WMG is valued rather cheaply.
Industry RankSector Rank
PE 50.53
Fwd PE 16.98
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

  • Based on the Enterprise Value to EBITDA ratio, WMG is valued a bit cheaper than 77.22% of the companies in the same industry.
  • WMG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WMG is cheaper than 72.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF 33.36
EV/EBITDA 13.58
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.
  • 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 40.46% in the coming years.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y57.05%
EPS Next 3Y40.46%

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5

5. WMG Dividend Analysis

5.1 Amount

  • WMG has a Yearly Dividend Yield of 2.62%.
  • WMG's Dividend Yield is rather good when compared to the industry average which is at 9.16. WMG pays more dividend than 96.20% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, 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.
  • As WMG did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
  • WMG's earnings are growing more than its dividend. This makes the dividend growth 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

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WMG Fundamentals: All Metrics, Ratios and Statistics

WARNER MUSIC GROUP CORP-CL A

NASDAQ:WMG (4/22/2026, 4:30:02 PM)

After market: 29.31 0 (0%)

29.31

-0.17 (-0.58%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners105.42%
Inst Owner Change0.15%
Ins Owners0.92%
Ins Owner Change6.34%
Market Cap15.35B
Revenue(TTM)6.88B
Net Income(TTM)299.00M
Analysts81.67
Price Target37.6 (28.28%)
Short Float %6.25%
Short Ratio3.51
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)-3.68%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.83%
Valuation
Industry RankSector Rank
PE 50.53
Fwd PE 16.98
P/S 2.23
P/FCF 33.36
P/OCF 20.01
P/B 21.31
P/tB N/A
EV/EBITDA 13.58
EPS(TTM)0.58
EY1.98%
EPS(NY)1.73
Fwd EY5.89%
FCF(TTM)0.88
FCFY3%
OCF(TTM)1.46
OCFY5%
SpS13.14
BVpS1.38
TBVpS-8
PEG (NY)0.54
PEG (5Y)N/A
Graham Number4.2365 (-85.55%)
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 1.69
F-Score5
WACC8.49%
ROIC/WACC1.62
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 50.53 and the Price/Book (PB) ratio is 21.31.


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

The financial health rating of WARNER MUSIC GROUP CORP-CL A (WMG) is 2 / 10.