WMG$30.88
$30.469
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AI WMG Summary
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Powered by LiveAIOverall Analysis
BuyWarner Music Group (WMG) presents a mixed investment profile. It shows strong performance metrics and positive momentum, with a notable dividend yield. However, its valuation appears stretched, and recent EPS surprises have been negative. The company operates within the dynamic music industry, offering exposure to digital streaming growth but also facing competition and evolving consumer preferences. Investors should weigh the growth potential against valuation concerns and recent earnings volatility.
Thematic
Warner Music Group is positioned within the music and entertainment industry, benefiting from the global shift towards digital music consumption and streaming services. Its extensive catalog and artist roster provide a solid foundation, while potential thematic tailwinds include growth in emerging markets, expansion of music licensing in various media, and the evolving creator economy.
Fundamental
WMG demonstrates solid revenue growth and a healthy dividend yield. However, profitability has been inconsistent, with recent EPS misses. Its balance sheet shows significant debt, which is partially offset by its substantial assets and cash flow generation.
Technical
The stock has demonstrated strong recent performance, particularly over the last month and six months. However, daily technical indicators suggest caution, with multiple moving averages indicating 'Sell' signals and RSI in overbought territory. This suggests potential short-term headwinds or consolidation.
| Factor | Score |
|---|---|
| Digital Music & Streaming Growth | 90 |
| Music Publishing & Licensing | 85 |
| Artist Development & Talent Acquisition | 80 |
| Emerging Markets Expansion | 65 |
| Impact of AI on Music Creation | 50 |
| Factor | Score |
|---|---|
| Valuation | 40 |
| Profitability | 55 |
| Growth | 70 |
| Balance Sheet Health | 30 |
| Cash Flow | 75 |
| Dividends | 80 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 45 |
| Volume Confirmation | 70 |
| Support & Resistance | 85 |
| Short-term Performance | 90 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Strong Short-Term Performance
The stock has shown robust performance over the last month and 6 months, with returns of 18.35% and 2.12% respectively, outperforming broader market indices during these periods.
Favorable P/E Ratio
The trailing P/E ratio of 36.60 is within a reasonable range for the entertainment industry, especially considering the company's market position and potential for growth.
Bearish Points (8)
Inconsistent EPS Performance
There is significant volatility in reported EPS compared to estimates, with several quarters showing large negative surprises (e.g., Q2 2025, Q4 2024, Q2 2023), indicating unpredictability in earnings generation.
High P/E Ratio
The trailing P/E ratio of 36.60 is relatively high, suggesting that the market has high expectations for future earnings growth, which may be difficult to consistently achieve.
Calendar
May 2025
27
Ex-Dividend Date
June 2025
3
Next Dividend Date
August 2025
7
Next Earnings Date
H: $0.36
A: $0.29
L: $0.26
H: 1.62B
A: 1.59B
L: 1.56B
Profile
Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It 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 sylum, Big Beat, Canvasback, East West, Erato, FFRR, Nonesuch, Parlophone, Reprise, Sire, Spinnin' Records, TenThousand Projects, Warner Classics, and Warner Music Nashville. This segment markets, distributes, and sells music and video products to retailers and wholesale distributors; independent labels to retail and wholesale distributors; and various distribution centers and ventures, as well as retail outlets, online physical retailers, streaming services, and download services. The Music Publishing segment owns and acquires rights to approximately one million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions. Its catalog includes songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative, and gospel. This segment also administers the music and soundtracks of various third-party television and film producers and studios. The company was founded in 1929 and is headquartered in New York, New York with a manufacturing unit in Singapore.
Seasonals
Price Target
33.29 USD
The 39 analysts offering 1 year price forecasts for WMG have a max estimate of 38.00 and a min estimate of 28.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
Powered by LiveAIWeight: 98
The largest global music streaming service, Spotify is a primary distribution channel and revenue source for Warner Music Group's recorded music and publishing catalogs.
Weight: 95
UMG is Warner Music Group's primary direct competitor in the global recorded music and music publishing industries, owning a vast catalog of artists and copyrights.
Weight: 90
As the parent company of Sony Music Entertainment and Sony Music Publishing, Sony is a direct and major competitor to Warner Music Group across all core music business segments.
Weight: 88
Apple Music is a major music streaming platform and digital music retailer, serving as a significant distribution channel and revenue partner for WMG's content.