(WMG) Warner Music - Ratings and Ratios
Recorded Music, Music Publishing, Music Catalog, Soundtracks
WMG EPS (Earnings per Share)
WMG Revenue
Description: WMG Warner Music
Warner Music Group Corp. is a global music entertainment company operating through two main segments: Recorded Music and Music Publishing. The Recorded Music segment focuses on discovering and developing recording artists, marketing, and distributing their music through various channels, including streaming services and physical retailers. With a diverse portfolio of record labels, such as Warner Records and Atlantic Records, the company has a strong presence in the music industry.
The Music Publishing segment owns and administers a vast catalog of approximately one million musical compositions across various genres, including pop, rock, and hip-hop. This segment generates revenue through licensing and royalties from songwriters, composers, and third-party producers and studios. The companys extensive music catalog and diverse revenue streams position it for long-term growth.
Key performance indicators (KPIs) to monitor Warner Music Groups success include revenue growth, streaming market share, and royalty revenue as a percentage of total revenue. The companys ability to adapt to changing consumer behavior, such as the shift to streaming, is crucial. With a strong presence in the global music market, Warner Music Groups KPIs, such as revenue per user (RPU) and average revenue per user (ARPU), will be important metrics to track. Additionally, the companys return on equity (RoE) of 85.57% indicates a strong ability to generate profits from shareholder equity.
To further analyze Warner Music Groups performance, its essential to examine its competitive position within the music industry, including its market share and competitive advantages. The companys ability to attract and retain top talent, both in terms of artists and songwriters, is also vital to its success. By monitoring these KPIs and staying focused on its core business, Warner Music Group is well-positioned for continued growth and success in the music entertainment industry.
WMG Stock Overview
| Market Cap in USD | 16,910m |
| Sub-Industry | Movies & Entertainment |
| IPO / Inception | 2020-06-03 |
WMG Stock Ratings
| Growth Rating | 9.23% |
| Fundamental | 51.6% |
| Dividend Rating | 67.8% |
| Return 12m vs S&P 500 | 1.76% |
| Analyst Rating | 3.89 of 5 |
WMG Dividends
| Dividend Yield 12m | 2.28% |
| Yield on Cost 5y | 2.72% |
| Annual Growth 5y | 23.87% |
| Payout Consistency | 100.0% |
| Payout Ratio | 73.0% |
WMG Growth Ratios
| Growth Correlation 3m | 92.4% |
| Growth Correlation 12m | -14.2% |
| Growth Correlation 5y | -14.4% |
| CAGR 5y | 4.47% |
| CAGR/Max DD 5y | 0.08 |
| Sharpe Ratio 12m | 1.30 |
| Alpha | 5.78 |
| Beta | 0.599 |
| Volatility | 27.06% |
| Current Volume | 918.6k |
| Average Volume 20d | 2191.4k |
| Stop Loss | 32.3 (-3.1%) |
| Signal | -0.02 |
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income (297.0m TTM) > 0 and > 6% of Revenue (6% = 388.1m TTM) |
| FCFTA 0.04 (>2.0%) and ΔFCFTA -2.21pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -21.21% (prev -17.08%; Δ -4.13pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 751.0m > Net Income 297.0m (YES >=105%, WARN >=100%) |
| Net Debt (4.09b) to EBITDA (949.0m) ratio: 4.31 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.66 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (521.3m) change vs 12m ago 0.65% (target <= -2.0% for YES) |
| Gross Margin 46.64% (prev 47.57%; Δ -0.93pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 69.53% (prev 72.28%; Δ -2.74pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 3.74 (EBITDA TTM 949.0m / Interest Expense TTM 159.0m) >= 6 (WARN >= 3) |
Altman Z'' -1.12
| (A) -0.14 = (Total Current Assets 2.68b - Total Current Liabilities 4.05b) / Total Assets 9.78b |
| (B) -0.14 = Retained Earnings (Balance) -1.34b / Total Assets 9.78b |
| (C) 0.06 = EBIT TTM 594.0m / Avg Total Assets 9.30b |
| (D) -0.17 = Book Value of Equity -1.51b / Total Liabilities 8.96b |
| Total Rating: -1.12 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 51.64
| 1. Piotroski 2.50pt = -2.50 |
| 2. FCF Yield 2.08% = 1.04 |
| 3. FCF Margin 6.68% = 1.67 |
| 4. Debt/Equity 7.48 = -2.50 |
| 5. Debt/Ebitda 4.64 = -2.50 |
| 6. ROIC - WACC 3.35% = 4.18 |
| 7. RoE 53.54% = 2.50 |
| 8. Rev. Trend 49.07% = 2.45 |
| 9. Rev. CAGR 4.49% = 0.56 |
| 10. EPS Trend -30.63% = -0.77 |
| 11. EPS CAGR -31.19% = -2.50 |
What is the price of WMG shares?
Over the past week, the price has changed by -1.24%, over one month by +12.95%, over three months by +28.14% and over the past year by +19.03%.
Is Warner Music a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of WMG is around 30.95 USD . This means that WMG is currently overvalued and has a potential downside of -7.2%.
Is WMG a buy, sell or hold?
- Strong Buy: 9
- Buy: 2
- Hold: 6
- Sell: 1
- Strong Sell: 1
What are the forecasts/targets for the WMG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 35.8 | 7.4% |
| Analysts Target Price | 32.9 | -1.4% |
| ValueRay Target Price | 33.9 | 1.8% |
Last update: 2025-08-21 02:49
WMG Fundamental Data Overview
CCE Cash And Equivalents = 527.0m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 56.9123
P/E Forward = 22.4719
P/S = 2.614
P/B = 28.6476
P/EG = 1.2118
Beta = 1.252
Revenue TTM = 6.47b USD
EBIT TTM = 594.0m USD
EBITDA TTM = 949.0m USD
Long Term Debt = 4.36b USD (from longTermDebt, last quarter)
Short Term Debt = 43.0m USD (from shortTermDebt, last quarter)
Debt = 4.41b USD (Calculated: Short Term 43.0m + Long Term 4.36b)
Net Debt = 4.09b USD (from netDebt column, last quarter)
Enterprise Value = 20.79b USD (16.91b + Debt 4.41b - CCE 527.0m)
Interest Coverage Ratio = 3.74 (Ebit TTM 594.0m / Interest Expense TTM 159.0m)
FCF Yield = 2.08% (FCF TTM 432.0m / Enterprise Value 20.79b)
FCF Margin = 6.68% (FCF TTM 432.0m / Revenue TTM 6.47b)
Net Margin = 4.59% (Net Income TTM 297.0m / Revenue TTM 6.47b)
Gross Margin = 46.64% ((Revenue TTM 6.47b - Cost of Revenue TTM 3.45b) / Revenue TTM)
Tobins Q-Ratio = -13.74 (set to none) (Enterprise Value 20.79b / Book Value Of Equity -1.51b)
Interest Expense / Debt = 0.98% (Interest Expense 43.0m / Debt 4.41b)
Taxrate = 20.47% (from yearly Income Tax Expense: 123.0m / 601.0m)
NOPAT = 472.4m (EBIT 594.0m * (1 - 20.47%))
Current Ratio = 0.66 (Total Current Assets 2.68b / Total Current Liabilities 4.05b)
Debt / Equity = 7.48 (Debt 4.41b / last Quarter total Stockholder Equity 589.0m)
Debt / EBITDA = 4.64 (Net Debt 4.09b / EBITDA 949.0m)
Debt / FCF = 10.20 (Debt 4.41b / FCF TTM 432.0m)
Total Stockholder Equity = 554.8m (last 4 quarters mean)
RoA = 3.04% (Net Income 297.0m, Total Assets 9.78b )
RoE = 53.54% (Net Income TTM 297.0m / Total Stockholder Equity 554.8m)
RoCE = 12.08% (Ebit 594.0m / (Equity 554.8m + L.T.Debt 4.36b))
RoIC = 10.03% (NOPAT 472.4m / Invested Capital 4.71b)
WACC = 6.68% (E(16.91b)/V(21.32b) * Re(8.22%)) + (D(4.41b)/V(21.32b) * Rd(0.98%) * (1-Tc(0.20)))
Shares Correlation 5-Years: 100.0 | Cagr: 0.31%
Discount Rate = 8.22% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 78.96% ; FCFE base≈493.2m ; Y1≈540.2m ; Y5≈687.4m
Fair Price DCF = 79.32 (DCF Value 11.57b / Shares Outstanding 145.9m; 5y FCF grow 10.87% → 3.0% )
Revenue Correlation: 49.07 | Revenue CAGR: 4.49%
Rev Growth-of-Growth: -4.60
EPS Correlation: -30.63 | EPS CAGR: -31.19%
EPS Growth-of-Growth: -110.5
Additional Sources for WMG Stock
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