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

NASDAQ:WMG • US9345502036

Current stock price

29.05 USD
0 (0%)
At close:
29.05 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

  • In the past year WMG was profitable.
  • WMG had a positive operating cash flow in the past year.
  • 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

  • The Return On Assets of WMG (2.99%) is better than 75.95% of its industry peers.
  • WMG's Return On Equity of 41.52% is amongst the best of the industry. WMG outperforms 97.47% of its industry peers.
  • WMG's Return On Invested Capital of 13.79% is amongst the best of the industry. WMG outperforms 93.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for WMG is significantly below the industry average of 159.10%.
  • 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

  • With a decent Profit Margin value of 4.35%, WMG is doing good in the industry, outperforming 74.68% 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 (14.74%) is better than 87.34% of its industry peers.
  • WMG's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 45.87%, WMG is in line with its industry, outperforming 54.43% of the companies in the same industry.
  • WMG's Gross Margin has been stable in the last couple of years.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. WMG Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WMG 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.
  • The debt/assets ratio for WMG is higher compared to a year ago.
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 1.67. This is a bad value and indicates that WMG is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.67, WMG is in the better half of 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.
  • A Debt/Equity ratio of 6.07 is on the high side and indicates that WMG has dependencies on debt financing.
  • WMG has a worse Debt to Equity ratio (6.07) than 77.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.07
Debt/FCF 9.5
Altman-Z 1.67
ROIC/WACC1.63
WACC8.46%
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

  • WMG has a Current Ratio of 0.70. 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 0.70 is on the low side compared to the rest of the industry. WMG is outperformed by 64.56% of its industry peers.
  • A Quick Ratio of 0.69 indicates that WMG may have some problems paying its short term obligations.
  • WMG's Quick ratio of 0.69 is on the low side compared to the rest of the industry. WMG is outperformed by 63.29% of its industry peers.
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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. WMG Growth Analysis

3.1 Past

  • The earnings per share for WMG have decreased strongly by -53.23% in the last year.
  • 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

  • WMG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.64% yearly.
  • 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 Year8.98%
Revenue Next 2Y7.51%
Revenue Next 3Y6.89%
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

More info and screens

Find the best growth stocksShow best growing peers

7

4. WMG Valuation Analysis

4.1 Price/Earnings Ratio

  • WMG is valuated quite expensively with a Price/Earnings ratio of 50.09.
  • 69.62% 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 (27.38), we can say WMG is valued expensively.
  • Based on the Price/Forward Earnings ratio of 16.83, the valuation of WMG can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of WMG indicates a rather cheap valuation: WMG is cheaper than 87.34% of the companies listed in the same industry.
  • WMG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.20.
Industry RankSector Rank
PE 50.09
Fwd PE 16.83
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 cheaply inside the industry as 81.01% of the companies are valued more expensively.
  • WMG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WMG is cheaper than 73.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 33.07
EV/EBITDA 13.42
WMG Per share dataWMG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

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.
  • WMG's earnings are expected to grow with 40.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y57.05%
EPS Next 3Y40.46%

More info and screens

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

5

5. WMG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.70%, WMG has a reasonable but not impressive dividend return.
  • WMG's Dividend Yield is rather good when compared to the industry average which is at 9.59. WMG pays more dividend than 96.20% 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 2.7%

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 past 5 years, so it has a somewhat stable track record.
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

  • 130.10% 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.
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

More info and screens

Find the best dividend stocksShow peers with best dividend

WMG Fundamentals: All Metrics, Ratios and Statistics

WARNER MUSIC GROUP CORP-CL A

NASDAQ:WMG (4/15/2026, 8:26:20 PM)

After market: 29.05 0 (0%)

29.05

0 (0%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners105.42%
Inst Owner Change0.03%
Ins Owners0.92%
Ins Owner Change7.11%
Market Cap15.21B
Revenue(TTM)6.88B
Net Income(TTM)299.00M
Analysts81.67
Price Target37.66 (29.64%)
Short Float %6.25%
Short Ratio3.51
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
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)-1.82%
PT rev (3m)-1.91%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)-3.61%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-3.68%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.58%
Valuation
Industry RankSector Rank
PE 50.09
Fwd PE 16.83
P/S 2.21
P/FCF 33.07
P/OCF 19.83
P/B 21.12
P/tB N/A
EV/EBITDA 13.42
EPS(TTM)0.58
EY2%
EPS(NY)1.73
Fwd EY5.94%
FCF(TTM)0.88
FCFY3.02%
OCF(TTM)1.46
OCFY5.04%
SpS13.14
BVpS1.38
TBVpS-8
PEG (NY)0.54
PEG (5Y)N/A
Graham Number4.2365 (-85.42%)
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 1.67
F-Score5
WACC8.46%
ROIC/WACC1.63
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 Year8.98%
Revenue Next 2Y7.51%
Revenue Next 3Y6.89%
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 50.09 and the Price/Book (PB) ratio is 21.12.


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.