WMG Stock Overview
Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally.
Warner Music Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$27.96|
|52 Week High||US$50.23|
|52 Week Low||US$24.39|
|1 Month Change||-10.39%|
|3 Month Change||-23.38%|
|1 Year Change||-21.99%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-7.17%|
Recent News & Updates
Warner Music Group: Slow But Steady, Don't Forget About This Music Leader
Shares of Warner Music Group have fallen in sympathy with the markets this year, down ~30% YTD. Fundamental performance, however, remains solid. The company is experiencing growth in streaming revenue while the return of concerts and festivals is boosting music sales. Profitability continues to grow as well, fueling Warner Music Group's recently raised dividend. Its 2% yield offers investors a decent reward for remaining patient.
Warner Music Group's (NASDAQ:WMG) Returns On Capital Are Heading Higher
What are the early trends we should look for to identify a stock that could multiply in value over the long term...
|WMG||US Entertainment||US Market|
Return vs Industry: WMG exceeded the US Entertainment industry which returned -49.8% over the past year.
Return vs Market: WMG underperformed the US Market which returned -13.2% over the past year.
|WMG Average Weekly Movement||8.0%|
|Entertainment Industry Average Movement||12.4%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: WMG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: WMG's weekly volatility (8%) has been stable over the past year.
About the Company
Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. The company operates through Recorded Music and Music Publishing segments. The Recorded Music segment is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by such recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials; and conducts its operation primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin’ Records, Warner Classics, and Warner Music Nashville.
Warner Music Group Fundamentals Summary
|WMG fundamental statistics|
Is WMG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|WMG income statement (TTM)|
|Cost of Revenue||US$2.95b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||0.71|
|Net Profit Margin||6.36%|
How did WMG perform over the long term?See historical performance and comparison
2.1%Current Dividend Yield
Is Warner Music Group undervalued compared to its fair value and its price relative to the market?
Valuation Score 1/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WMG ($27.96) is trading below our estimate of fair value ($33.35)
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 poor value based on its Price-To-Earnings Ratio (39.7x) compared to the US Entertainment industry average (23.8x).
PE vs Market: WMG is poor value based on its Price-To-Earnings Ratio (39.7x) compared to the US market (14.9x).
Price to Earnings Growth Ratio
PEG Ratio: WMG is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: WMG is overvalued based on its Price-To-Book Ratio (93.5x) compared to the US Entertainment industry average (1.9x).
How is Warner Music Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WMG's forecast earnings growth (18.6% per year) is above the savings rate (1.9%).
Earnings vs Market: WMG's earnings (18.6% per year) are forecast to grow faster than the US market (12.1% per year).
High Growth Earnings: WMG's earnings are forecast to grow, but not significantly.
Revenue vs Market: WMG's revenue (9.8% per year) is forecast to grow faster than the US market (7.7% per year).
High Growth Revenue: WMG's revenue (9.8% 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 (92.2%).
How has Warner Music Group performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WMG has high quality earnings.
Growing Profit Margin: WMG became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: WMG's earnings have declined by 9% per year over the past 5 years.
Accelerating Growth: WMG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: WMG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Entertainment industry (7.1%).
Return on Equity
High ROE: Whilst WMG's Return on Equity (214.45%) is outstanding, this metric is skewed due to their high level of debt.
How is Warner Music Group's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: WMG's short term assets ($1.9B) do not cover its short term liabilities ($3.1B).
Long Term Liabilities: WMG's short term assets ($1.9B) do not cover its long term liabilities ($4.5B).
Debt to Equity History and Analysis
Debt Level: WMG's net debt to equity ratio (1991.9%) is considered high.
Reducing Debt: WMG's debt to equity ratio has increased from 1468% to 2214.5% over the past 5 years.
Debt Coverage: WMG's debt is not well covered by operating cash flow (12.8%).
Interest Coverage: WMG's interest payments on its debt are well covered by EBIT (5.5x coverage).
What is Warner Music Group current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WMG's dividend (2.15%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: WMG's dividend (2.15%) is low compared to the top 25% of dividend payers in the US market (4.06%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, WMG has been paying a dividend for less than 10 years.
Growing Dividend: WMG's dividend payments have increased, but the company has only paid a dividend for 2 years.
Earnings Payout to Shareholders
Earnings Coverage: At its current payout ratio (80.8%), WMG's payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (594.1%), WMG's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Cooper (75 yo)
Mr. Stephen Forbes Cooper, also known as Steve, is the Trustee of The Paley Center for Media. Mr. Cooper has been the Chief Executive Officer of Warner Music Group Corp. since August 18, 2011 and has been...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD10.74M) is about average for companies of similar size in the US market ($USD13.26M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Experienced Management: WMG's management team is seasoned and experienced (7.3 years average tenure).
Experienced Board: WMG's board of directors are considered experienced (9.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Warner Music Group Corp.'s employee growth, exchange listings and data sources
- Name: Warner Music Group Corp.
- Ticker: WMG
- Exchange: NasdaqGS
- Founded: 1929
- Industry: Movies and Entertainment
- Sector: Media
- Implied Market Cap: US$14.395b
- Shares outstanding: 514.85m
- Website: https://www.wmg.com
Number of Employees
- Warner Music Group Corp.
- 1633 Broadway
- New York
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/25 00:00|
|End of Day Share Price||2022/05/25 00:00|
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.