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

NASDAQ:WMG • US9345502036

29.45 USD
+0.9 (+3.15%)
At close: Feb 13, 2026
29.45 USD
0 (0%)
After Hours: 2/13/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WMG. WMG was compared to 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.


Dividend Valuation Growth Profitability Health

8

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.
  • 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

  • WMG has a better Return On Assets (3.64%) than 81.25% of its industry peers.
  • WMG has a Return On Equity of 55.33%. This is amongst the best in the industry. WMG outperforms 98.75% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 12.78%, WMG belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for WMG 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

  • With a decent Profit Margin value of 5.34%, WMG is doing good in the industry, outperforming 77.50% of the companies in the same industry.
  • In the last couple of years the Profit Margin of WMG has declined.
  • The Operating Margin of WMG (13.84%) is better than 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 of 45.85%. This is comparable to the rest of the industry: WMG outperforms 53.75% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WMG is still 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.
  • Compared to 1 year ago, WMG has a worse debt to assets ratio.
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.
  • WMG has a Altman-Z score of 1.63. This is in the better half of the industry: WMG outperforms 61.25% of 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.
  • Looking at the Debt to FCF ratio, with a value of 12.80, WMG is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
  • A Debt/Equity ratio of 6.75 is on the high side and indicates that WMG has dependencies on debt financing.
  • The Debt to Equity ratio of WMG (6.75) is worse than 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.75
Debt/FCF 12.8
Altman-Z 1.63
ROIC/WACC1.44
WACC8.9%
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's Current ratio of 0.66 is on the low side compared to the rest of the industry. WMG is outperformed by 72.50% 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 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

  • The earnings per share for WMG have decreased strongly by -53.23% 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 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 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.
  • 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.
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

  • The Price/Earnings ratio is 50.78, 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.
  • When comparing the Price/Earnings ratio of WMG to the average of the S&P500 Index (27.19), we can say WMG is valued expensively.
  • A Price/Forward Earnings ratio of 17.18 indicates a rather expensive valuation of WMG.
  • WMG's Price/Forward Earnings ratio is rather cheap when compared to the industry. WMG is cheaper than 83.75% of the companies in the same industry.
  • WMG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 50.78
Fwd PE 17.18
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

  • Based on the Enterprise Value to EBITDA ratio, WMG is valued a bit cheaper than 72.50% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of WMG indicates a somewhat cheap valuation: WMG is cheaper than 66.25% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 45.11
EV/EBITDA 14.74
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.
  • A more expensive valuation may be justified as WMG's earnings are expected to grow with 40.18% in the coming years.
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

  • WMG has a Yearly Dividend Yield of 2.54%.
  • WMG's Dividend Yield is rather good when compared to the industry average which is at 7.46. WMG pays more dividend than 92.50% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, WMG pays a bit more dividend than the S&P500 average.
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

  • 106.98% of the earnings are spent on dividend by WMG. 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 (2/13/2026, 8:00:02 PM)

After market: 29.45 0 (0%)

29.45

+0.9 (+3.15%)

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 Cap15.38B
Revenue(TTM)6.88B
Net Income(TTM)358.00M
Analysts80.83
Price Target38.3 (30.05%)
Short Float %4.48%
Short Ratio2.9
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 50.78
Fwd PE 17.18
P/S 2.29
P/FCF 45.11
P/OCF 22.79
P/B 23.78
P/tB N/A
EV/EBITDA 14.74
EPS(TTM)0.58
EY1.97%
EPS(NY)1.71
Fwd EY5.82%
FCF(TTM)0.65
FCFY2.22%
OCF(TTM)1.29
OCFY4.39%
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
WACC8.9%
ROIC/WACC1.44
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%.