Overview Dividends

(WMG) Warner Music - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US9345502036

Recorded Music,Music Publishing

WMG EPS (Earnings per Share)

EPS Growth (3Y CAGR): -55.40%
EPS Trend (3Y Correlation): -7.0%

WMG Revenue

Revenue Growth (3Y CAGR): 4.49%
Revenue Trend (3Y Correlation): 49.1%

Description: WMG Warner Music October 16, 2025

Warner Music Group Corp. (NASDAQ: WMG) is a global music-entertainment company operating in the United States, United Kingdom, Germany and other markets through two main segments: Recorded Music and Music Publishing. The Recorded Music segment discovers, develops, markets, promotes, distributes, sells and licenses recordings from a portfolio of labels that includes Warner Records, Atlantic Records, Parlophone, Spinnin’ Records and others, reaching retailers, wholesalers, streaming platforms and direct-to-consumer channels. The Music Publishing segment owns roughly one million compositions across all major genres and administers third-party sync rights for film, TV and advertising.

Key recent metrics indicate that streaming now accounts for about 70 % of WMG’s total revenue, with 2023 earnings of roughly $5.2 billion and a 12 % year-over-year increase in net income driven by higher royalty yields and cost-discipline. The company’s publishing royalties have risen faster than the recorded-music side, reflecting a broader industry shift toward sync licensing and the growing value of catalog assets. Macro-level drivers include continued global growth in paid-subscription streaming, the rollout of high-resolution audio formats, and emerging AI-generated music tools that could reshape royalty structures.

For a deeper dive into WMG’s valuation metrics and peer comparison, you might explore the ValueRay platform.

WMG Stock Overview

Market Cap in USD	17,199m
Sub-Industry	Movies & Entertainment
IPO / Inception	2020-06-03

WMG Stock Ratings

Growth Rating	13.2%
Fundamental	62.9%
Dividend Rating	72.5%
Return 12m vs S&P 500	-15.9%
Analyst Rating	3.89 of 5

WMG Dividends

Dividend Yield 12m	2.28%
Yield on Cost 5y	3.08%
Annual Growth 5y	30.68%
Payout Consistency	100.0%
Payout Ratio	59.8%

WMG Growth Ratios

Growth Correlation 3m	11.3%
Growth Correlation 12m	13.7%
Growth Correlation 5y	-19.8%
CAGR 5y	10.32%
CAGR/Max DD 3y (Calmar Ratio)	0.28
CAGR/Mean DD 3y (Pain Ratio)	0.69
Sharpe Ratio 12m	0.15
Alpha	-21.58
Beta	1.312
Volatility	30.46%
Current Volume	1570.5k
Average Volume 20d	1783k
Stop Loss	30.8 (-3.6%)
Signal	0.28

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

(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) 62.89

1. Piotroski 2.50pt = -2.50

2. FCF Yield 2.03% = 1.01

3. FCF Margin 6.68% = 1.67

4. Debt/Equity 7.84 = -2.50

5. Debt/Ebitda 4.31 = -2.50

6. ROIC - WACC (= 9.50)% = 11.88

7. RoE 53.54% = 2.50

8. Rev. Trend 49.07% = 3.68

9. EPS Trend -6.95% = -0.35

What is the price of WMG shares?

As of November 03, 2025, the stock is trading at USD 31.96 with a total of 1,570,515 shares traded.
Over the past week, the price has changed by -1.11%, over one month by -6.52%, over three months by +9.98% and over the past year by +1.88%.

Is Warner Music a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Warner Music is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 62.89 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of WMG is around 28.98 USD . This means that WMG is currently overvalued and has a potential downside of -9.32%.

Is WMG a buy, sell or hold?

Warner Music has received a consensus analysts rating of 3.89. Therefore, it is recommended to buy WMG.

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	37.7	18%
Analysts Target Price	37.7	18%
ValueRay Target Price	32.4	1.4%

WMG Fundamental Data Overview October 20, 2025

Market Cap USD = 17.20b (17.20b USD * 1.0 USD.USD)
P/E Trailing = 57.886
P/E Forward = 23.753
P/S = 2.6587
P/B = 30.2583
P/EG = 1.2799
Beta = 1.312
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 = 4.62b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.09b USD (from netDebt column, last quarter)
Enterprise Value = 21.29b USD (17.20b + Debt 4.62b - CCE 527.0m)
Interest Coverage Ratio = 3.74 (Ebit TTM 594.0m / Interest Expense TTM 159.0m)
FCF Yield = 2.03% (FCF TTM 432.0m / Enterprise Value 21.29b)
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)
Gross Margin QoQ = 45.94% (prev 46.70%)
Tobins Q-Ratio = 2.18 (Enterprise Value 21.29b / Total Assets 9.78b)
Interest Expense / Debt = 0.93% (Interest Expense 43.0m / Debt 4.62b)
Taxrate = -45.45% (negative due to tax credits) (5.00m / -11.0m)
NOPAT = 864.0m (EBIT 594.0m * (1 - -45.45%)) [negative tax rate / tax credits]
Current Ratio = 0.66 (Total Current Assets 2.68b / Total Current Liabilities 4.05b)
Debt / Equity = 7.84 (Debt 4.62b / totalStockholderEquity, last quarter 589.0m)
Debt / EBITDA = 4.31 (Net Debt 4.09b / EBITDA 949.0m)
Debt / FCF = 9.47 (Net Debt 4.09b / FCF TTM 432.0m)
Total Stockholder Equity = 554.8m (last 4 quarters mean from totalStockholderEquity)
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 / Capital Employed (Equity 554.8m + L.T.Debt 4.36b))
RoIC = 18.34% (NOPAT 864.0m / Invested Capital 4.71b)
WACC = 8.84% (E(17.20b)/V(21.82b) * Re(10.85%) + D(4.62b)/V(21.82b) * Rd(0.93%) * (1-Tc(-0.45)))
Discount Rate = 10.85% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.46%
[DCF Debug] Terminal Value 70.37% ; FCFE base≈493.2m ; Y1≈540.2m ; Y5≈687.4m
Fair Price DCF = 52.49 (DCF Value 7.66b / Shares Outstanding 145.9m; 5y FCF grow 10.87% → 3.0% )
EPS Correlation: -6.95 | EPS CAGR: -55.40% | SUE: -2.64 | # QB: 0
Revenue Correlation: 49.07 | Revenue CAGR: 4.49% | SUE: 2.21 | # QB: 1

Additional Sources for WMG Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle