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

NASDAQ:WMG • US9345502036

29.21 USD
-0.04 (-0.14%)
At close: Feb 19, 2026
29.21 USD
0 (0%)
After Hours: 2/19/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall WMG gets a fundamental rating of 5 out of 10. We evaluated WMG 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • WMG had positive earnings in the past year.
  • WMG had a positive operating cash flow in the past year.
  • Each year in the past 5 years WMG has been profitable.
  • In the past 5 years WMG always reported a positive cash flow from operatings.
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

  • The Return On Assets of WMG (3.64%) is better than 81.25% of its industry peers.
  • With an excellent Return On Equity value of 55.33%, WMG belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
  • WMG's Return On Invested Capital of 12.78% is amongst the best of the industry. WMG outperforms 92.50% of its industry peers.
  • WMG had an Average Return On Invested Capital over the past 3 years of 13.09%. This is significantly above the industry average of 7.77%.
Industry RankSector 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%
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

  • WMG's Profit Margin of 5.34% is fine compared to the rest of the industry. WMG outperforms 77.50% of its industry peers.
  • WMG's Profit Margin has declined in the last couple of years.
  • WMG's Operating Margin of 13.84% is amongst the best of the industry. WMG outperforms 83.75% of its industry peers.
  • In the last couple of years the Operating Margin of WMG has grown nicely.
  • WMG has a Gross Margin (45.85%) which is comparable to the rest of the industry.
  • WMG's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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

2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WMG is creating some value.
  • WMG has more shares outstanding than it did 1 year ago.
  • 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

  • Based on the Altman-Z score of 1.63, we must say that WMG is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of WMG (1.63) is better than 61.25% of its industry peers.
  • WMG has a debt to FCF ratio of 12.80. This is a negative value and a sign of low solvency as WMG would need 12.80 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 12.80, WMG is doing good in the industry, outperforming 61.25% of the companies in the same industry.
  • 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: 80.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 6.75
Debt/FCF 12.8
Altman-Z 1.63
ROIC/WACC1.43
WACC8.95%
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 0.66 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 72.50% 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.
  • Looking at the Quick ratio, with a value of 0.64, WMG is doing worse than 70.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.64
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. Growth

3.1 Past

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

  • 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.
  • Based on estimates for the next years, WMG will show a small growth in Revenue. The Revenue will grow by 6.05% on average per year.
EPS Next Y98.82%
EPS Next 2Y56.49%
EPS Next 3Y40.18%
EPS Next 5Y25.64%
Revenue Next Year7.5%
Revenue Next 2Y6.69%
Revenue Next 3Y6.38%
Revenue Next 5Y6.05%

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.
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. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 50.36 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.
  • When comparing the Price/Earnings ratio of WMG to the average of the S&P500 Index (27.09), we can say WMG is valued expensively.
  • With a Price/Forward Earnings ratio of 17.04, WMG is valued on the expensive side.
  • 83.75% of the companies in the same industry are more expensive than WMG, based on the Price/Forward Earnings ratio.
  • WMG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.98, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 50.36
Fwd PE 17.04
WMG Price Earnings VS Forward Price EarningsWMG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 71.25% of the companies listed in the same industry.
  • 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 RankSector Rank
P/FCF 44.74
EV/EBITDA 14.66
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 an outstanding profitability rating, which may justify a higher PE ratio.
  • WMG's earnings are expected to grow with 40.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y56.49%
EPS Next 3Y40.18%

More info and screens

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

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.54%, WMG has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 7.46, WMG pays a better dividend. On top of this WMG pays more dividend than 92.50% of the companies listed in the same industry.
  • WMG's Dividend Yield is a higher than the S&P500 average which is at 1.85.
Industry RankSector Rank
Dividend Yield 2.54%

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
WMG Yearly Dividends per shareWMG Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

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 2Y56.49%
EPS Next 3Y40.18%
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

WARNER MUSIC GROUP CORP-CL A

NASDAQ:WMG (2/19/2026, 8:00:02 PM)

After market: 29.21 0 (0%)

29.21

-0.04 (-0.14%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners109.12%
Inst Owner Change0.08%
Ins Owners1.42%
Ins Owner Change6.86%
Market Cap15.26B
Revenue(TTM)6.88B
Net Income(TTM)358.00M
Analysts80.83
Price Target38.3 (31.12%)
Short Float %4.29%
Short Ratio2.56
Dividend
Industry RankSector Rank
Dividend Yield 2.54%
Yearly Dividend0.74
Dividend Growth(5Y)1.77%
DP106.98%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
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)1.07%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)-2.31%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.65%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.68%
Valuation
Industry RankSector Rank
PE 50.36
Fwd PE 17.04
P/S 2.27
P/FCF 44.74
P/OCF 22.6
P/B 23.58
P/tB N/A
EV/EBITDA 14.66
EPS(TTM)0.58
EY1.99%
EPS(NY)1.71
Fwd EY5.87%
FCF(TTM)0.65
FCFY2.23%
OCF(TTM)1.29
OCFY4.42%
SpS12.84
BVpS1.24
TBVpS-8.22
PEG (NY)0.51
PEG (5Y)N/A
Graham Number4.02
Profitability
Industry RankSector 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 RankSector 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
WACC8.95%
ROIC/WACC1.43
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 Y98.82%
EPS Next 2Y56.49%
EPS Next 3Y40.18%
EPS Next 5Y25.64%
Revenue 1Y (TTM)8.46%
Revenue growth 3Y4.25%
Revenue growth 5Y8.49%
Sales Q2Q%10.44%
Revenue Next Year7.5%
Revenue Next 2Y6.69%
Revenue Next 3Y6.38%
Revenue Next 5Y6.05%
EBIT growth 1Y-4.13%
EBIT growth 3Y9.13%
EBIT growth 5YN/A
EBIT Next Year91.85%
EBIT Next 3Y32.31%
EBIT Next 5Y20.75%
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 5 / 10 to WMG.


What is the valuation status of WARNER MUSIC GROUP CORP-CL A (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.


What is the profitability of WMG stock?

WARNER MUSIC GROUP CORP-CL A (WMG) has a profitability rating of 8 / 10.


What is the earnings growth outlook for WARNER MUSIC GROUP CORP-CL A?

The Earnings per Share (EPS) of WARNER MUSIC GROUP CORP-CL A (WMG) is expected to grow by 98.82% in the next year.


How sustainable is the dividend of WARNER MUSIC GROUP CORP-CL A (WMG) stock?

The dividend rating of WARNER MUSIC GROUP CORP-CL A (WMG) is 5 / 10 and the dividend payout ratio is 106.98%.