Obermatt

Flags

Financial distress

Warner Music Group

NSQ:WMG · US9345502036
EntertainmentX-Large

360

68
EV / EBIT63
Price / Owner Earnings30
Owner Earnings Yield65
Dividend Yield87
Price/Sales42
EV / Gross Profit40
Price/Book7
Return on Capital90
Cash Return on Capital76
Return on Equity96
EBIT Margin87
Gross Profitability63
Cash Conversion51
Accruals24
Owner Earnings Margin67
Sales growth43
Profit Growth82
Long-Term EPS Growth95
Owner Earnings Growth82
Reinvestment16
Price momentum52
Debt load23
Refinancing30
Debt Payback41
Liquidity80
Analyst ratings50
Opinion Changes50
Price Target Upside59
Market mood67
Value Creation20/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Warner Music Group generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUSA
IndustryEntertainment
SizeX-Large
TypePublic Company
ExchangeNASDAQGS
Founded2003
Employees3,339
Websitewmg.com
ISINUS9345502036
Last UpdateApr 2, 2026
Themes
Digital MediaMusic StreamingStreaming MediaDigital EntertainmentMedia and EntertainmentMusic

Description

Warner Music Group Corp. operates as a music entertainment company worldwide. The company is the direct parent of WMG Holdings Corp. (‘Holdings’), which is the direct parent of WMG Acquisition Corp. (‘Acquisition Corp.’). Acquisition Corp. is one of…

Analysis

Middle-of-the-road

Warner Music Group Corp. sits in the middle of our grid: average quality, average price, no obvious signal in either direction. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is fair. The owner-earnings multiple stands at 20.1×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 6% a year, against analyst forecasts of 40%. The price, in other words, assumes less than the experts do.

Growth is solid; the safety picture is adequate. The company scores 20/20 on our value-creation score: strong value creator. Analyst sentiment is cautious.

Flags to be aware of: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
37
2023202420252026

All-time high

91

Jan 2023

All-time low

14

Mar 2026

Average rank

50

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
42
42
41
45
Price/Earnings
25
48
45
27
Price/Book
7
16
7
1
Dividend Yield
87
95
92
95
Value (overall)
40
68
50
55

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

Similar Stocks

The companies this stock is ranked against.

Compare Warner Music Group with its peers
Reservoir Media
NMQ:RSVR
23
CountryUSA
IndustryEntertainment
SizeSmall
Full Stock Analysis →
LiveOne
NAQ:LVO
20
CountryUSA
IndustryEntertainment
SizeSmall
Full Stock Analysis →
Live Nation
NYQ:LYV
34
CountryUSA
IndustryEntertainment
SizeX-Large
Full Stock Analysis →
CuriosityStream
NAQ:CURI
86
CountryUSA
IndustryEntertainment
SizeSmall
Full Stock Analysis →
Cineverse
NAQ:CNVS
9
CountryUSA
IndustryEntertainment
SizeSmall
Full Stock Analysis →
Lionsgate Studios
NYQ:LION
21
CountryCanada
IndustryEntertainment
SizeLarge
Full Stock Analysis →

Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →