NasdaqGS:WMG

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Executive Summary

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, and internationally. More Details


Snowflake Analysis

High growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Warner Music Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WMG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WMG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

WMG

-2.6%

US Entertainment

-0.4%

US Market


1 Year Return

n/a

WMG

74.5%

US Entertainment

36.2%

US Market

Return vs Industry: Insufficient data to determine how WMG performed against the US Entertainment industry.

Return vs Market: Insufficient data to determine how WMG performed against the US Market.


Shareholder returns

WMGIndustryMarket
7 Day-1.2%-2.6%-0.4%
30 Day-8.8%-3.7%-2.3%
90 Day18.5%15.8%5.0%
1 Yearn/a74.8%74.5%39.1%36.2%
3 Yearn/a86.6%83.5%48.4%39.0%
5 Yearn/a176.0%164.3%116.6%92.4%

Long-Term Price Volatility Vs. Market

How volatile is Warner Music Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Warner Music Group undervalued compared to its fair value and its price relative to the market?

11.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WMG ($35.05) is trading below our estimate of fair value ($39.54)

Significantly Below Fair Value: WMG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WMG is unprofitable, so we can't compare its PE Ratio to the US Entertainment industry average.

PE vs Market: WMG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WMG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WMG is overvalued based on its PB Ratio (1126.8x) compared to the US Entertainment industry average (4.8x).


Next Steps

Future Growth

How is Warner Music Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

32.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WMG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: WMG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WMG's is expected to become profitable in the next 3 years.

Revenue vs Market: WMG's revenue (10.8% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: WMG's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WMG's Return on Equity is forecast to be very high in 3 years time (144.7%).


Next Steps

Past Performance

How has Warner Music Group performed over the past 5 years?

-17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WMG is currently unprofitable.

Growing Profit Margin: WMG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WMG is unprofitable, and losses have increased over the past 5 years at a rate of 17% per year.

Accelerating Growth: Unable to compare WMG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WMG is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (47.6%).


Return on Equity

High ROE: WMG has a negative Return on Equity (-1493.94%), as it is currently unprofitable.


Next Steps

Financial Health

How is Warner Music Group's financial position?


Financial Position Analysis

Short Term Liabilities: WMG's short term assets ($1.8B) do not cover its short term liabilities ($2.9B).

Long Term Liabilities: WMG's short term assets ($1.8B) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: WMG's debt to equity ratio (10366.7%) is considered high.

Reducing Debt: WMG's debt to equity ratio has increased from 1249.3% to 10366.7% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable WMG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WMG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 8.2% per year.


Next Steps

Dividend

What is Warner Music Group current dividend yield, its reliability and sustainability?

1.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WMG's dividend (1.37%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: WMG's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (3.64%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether WMG's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if WMG's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: WMG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: WMG's dividends in 3 years are forecast to be well covered by earnings (32.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Steve Cooper (74 yo)

9.58yrs

Tenure

US$15,974,945

Compensation

Mr. Stephen Forbes Cooper, also known as Steve, is the Trustee of The Paley Center for Media. Mr. Cooper has been the Chief Executive Officer of Warner Music Group Corp. since August 18, 2011 and has been ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD15.97M) is above average for companies of similar size in the US market ($USD10.58M).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Cooper
CEO & Director9.58yrsUS$15.97m2.3%
$ 415.4m
Eric Levin
Executive VP & CFO6.42yrsUS$9.75mno data
Paul Robinson
Executive VP14.25yrsUS$5.25mno data
Max Lousada
Chief Executive Officer of Warner Recorded Music3.42yrsUS$8.71mno data
Guy Moot
Co-Chair & CEO of Warner Chappell Music1.92yrsUS$4.01mno data
Lori Scherwin
Vice President7.17yrsno datano data
Trent Tappe
Senior VPno datano datano data
James Steven
Executive VP & Chief Communications Officer6.17yrsno datano data
Michael Drexler
Vice President of Digital Strategy & Corporate Development3.92yrsno datano data
Maria Osherova
Executive VP & Chief People Officer6.67yrsno data0.0018%
$ 324.5k
Mel Fox
Chief Transformation Officer - Warner Music UKno datano datano data
Christopher Ancliff
Executive Vice President of Eastern Europeno datano datano data

6.4yrs

Average Tenure

55yo

Average Age

Experienced Management: WMG's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Cooper
CEO & Director9.58yrsUS$15.97m2.3%
$ 415.4m
Guy Moot
Co-Chair & CEO of Warner Chappell Music1.92yrsUS$4.01mno data
Carianne Marshall
Co-Chair & COO of Warner Chappell Music2.17yrsUS$2.45mno data
Michael Lynton
Independent Chairman2.08yrsUS$518.39k0.0028%
$ 506.6k
Thomas Lee
Independent Director9.58yrsUS$243.72k0.0019%
$ 347.9k
Mathias Döpfner
Independent Director6.83yrsUS$399.55k0.0019%
$ 347.9k
Leonard Blavatnik
Vice Chairman of the Board9.67yrsno data1.32%
$ 237.5m
Donald Wagner
Director9.67yrsno datano data
Rob Cavallo
Chairman10.5yrsno datano data
Lincoln Benet
Director9.67yrsno datano data
Alex Blavatnik
Director9.67yrsno data0.11%
$ 20.4m
Noreena Hertz
Independent Director3.5yrsUS$242.11k0.0019%
$ 347.9k

9.6yrs

Average Tenure

57yo

Average Age

Experienced Board: WMG's board of directors are considered experienced (9.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WMG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: WMG only recently listed within the past 12 months.


Top Shareholders

Company Information

Warner Music Group Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Warner Music Group Corp.
  • Ticker: WMG
  • Exchange: NasdaqGS
  • Founded: 1929
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$18.028b
  • Shares outstanding: 514.35m
  • Website: https://www.wmg.com

Number of Employees


Location

  • Warner Music Group Corp.
  • 1633 Broadway
  • New York
  • New York
  • 10019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMGNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 2020
WMGWBAG (Wiener Boerse AG)YesClass A Common StockATEURJun 2020
WA4DB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2020
WA4BST (Boerse-Stuttgart)YesClass A Common StockDEEURJun 2020
W1MG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COM NPVBRBRLOct 2020

Biography

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, and internationally. The company operates through Recorded Music and Music Publishing segments. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 23:59
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.