Warner Music Group
Market Cap
US$18.0b
Last Updated
2021/03/06 23:59 UTC
Data Sources
Company Financials +
Executive Summary
Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, and internationally. More Details
Rewards
Risk Analysis
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
| WMG | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.2% | -2.6% | -0.4% |
| 30 Day | -8.8% | -3.7% | -2.3% |
| 90 Day | 18.5% | 15.8% | 5.0% |
| 1 Year | n/a | 74.8%74.5% | 39.1%36.2% |
| 3 Year | n/a | 86.6%83.5% | 48.4%39.0% |
| 5 Year | n/a | 176.0%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
2 weeks ago | Simply Wall St
Don't Race Out To Buy Warner Music Group Corp. (NASDAQ:WMG) Just Because It's Going Ex-Dividend1 month ago | Simply Wall St
A Look At The Fair Value Of Warner Music Group Corp. (NASDAQ:WMG)3 months ago | Simply Wall St
Are Dividend Investors Getting More Than They Bargained For With Warner Music Group Corp.'s (NASDAQ:WMG) Dividend?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 9.58yrs | US$15.97m | 2.3% $ 415.4m | |
| Executive VP & CFO | 6.42yrs | US$9.75m | no data | |
| Executive VP | 14.25yrs | US$5.25m | no data | |
| Chief Executive Officer of Warner Recorded Music | 3.42yrs | US$8.71m | no data | |
| Co-Chair & CEO of Warner Chappell Music | 1.92yrs | US$4.01m | no data | |
| Vice President | 7.17yrs | no data | no data | |
| Senior VP | no data | no data | no data | |
| Executive VP & Chief Communications Officer | 6.17yrs | no data | no data | |
| Vice President of Digital Strategy & Corporate Development | 3.92yrs | no data | no data | |
| Executive VP & Chief People Officer | 6.67yrs | no data | 0.0018% $ 324.5k | |
| Chief Transformation Officer - Warner Music UK | no data | no data | no data | |
| Executive Vice President of Eastern Europe | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 9.58yrs | US$15.97m | 2.3% $ 415.4m | |
| Co-Chair & CEO of Warner Chappell Music | 1.92yrs | US$4.01m | no data | |
| Co-Chair & COO of Warner Chappell Music | 2.17yrs | US$2.45m | no data | |
| Independent Chairman | 2.08yrs | US$518.39k | 0.0028% $ 506.6k | |
| Independent Director | 9.58yrs | US$243.72k | 0.0019% $ 347.9k | |
| Independent Director | 6.83yrs | US$399.55k | 0.0019% $ 347.9k | |
| Vice Chairman of the Board | 9.67yrs | no data | 1.32% $ 237.5m | |
| Director | 9.67yrs | no data | no data | |
| Chairman | 10.5yrs | no data | no data | |
| Director | 9.67yrs | no data | no data | |
| Director | 9.67yrs | no data | 0.11% $ 20.4m | |
| Independent Director | 3.5yrs | US$242.11k | 0.0019% $ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WMG | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | Jun 2020 |
| WMG | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Jun 2020 |
| WA4 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Jun 2020 |
| WA4 | BST (Boerse-Stuttgart) | Yes | Class A Common Stock | DE | EUR | Jun 2020 |
| W1MG34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM NPV | BR | BRL | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/06 23:59 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/09/30 |
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.