Loading stock…

Warner Music Group Corp. (WMG) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated today

Warner Music Group Corp.

WMGMarket cap $15BPrice $28.9

Country🇺🇸United States

SectorTechnology

IndustryEntertainment

Signs, records, and monetizes music across recordings and publishing for artists like Dua Lipa and Ed Sheeran. One of only three major labels controlling roughly two-thirds of global recorded music revenue.

In Bastion Portfolios?

52W Return-11%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+4%5

Revenue Forecast

Rev CAGR (1y)+9%6

Rev CAGR (3y)+7%5

Rev CAGR (5y)+6%6

Earnings Forecast

EPS Growth Y+1+169%10

EPS Growth Y+2+7%6

EPS Growth Y+3+18%8

Quality

Margins

EBIT Margin17%7

Net Income Margin9%5

Free Cash Flow Margin11%6

Debt

Net Debt/EBITDA2.54

Efficiency

ROE92%10

ROA6%7

Earnings Stability55

GEAR+AVERAGE62

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)175

P/E Ratio (Forward 3y)126

P/BV17.71

EV Multiples

EV/EBITDA Fwd115

EV/EBIT Fwd165

Yield

Free Cash Flow Yield5.5%7

Dividend Yield2.8%7

Momentum

Short term

1 month return+3%9

3 month return-0%6

YTD return-4%4

Mid term

Price vs 52wHigh83%6

1 year return-8%4

Long term

3 year return-5%3

5 year return-28%2

Risk Shield

Price Risk

Beta1.04

Volatility34%6

Free Cash Flow

Free Cash Flow Margin11%6

Free Cash Flow Yield5.5%7

Quality

ROCE21%9

Earnings Stability55

Net Debt/EBITDA2.54

02Growth

Is it actually growing, and how fast?

WMGWarner Music Group

Revenue FY25$6.7B

GROWTH RATING↗

AVERAGE55 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+4%5

Revenue, next 1Y+9%6

Revenue, next 3Y, CAGR+7%5

Revenue, next 5Y, CAGR+6%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+169%10

EPS growth, FY27E+7%6

EPS growth, FY28E+18%8

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 18%/yr vs revenue 7%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 55% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 4%/yr over the last 3 years and is set to keep growing around 7%/yr.

Over five years revenue is set to grow 6%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE40 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+3%9

3-month return-0%6

YTD return-4%4

MID & LONG-TERM▾SCORE

% of 52-week high83%6

1-year return-8%4

3-year return-5%3

5-year return-28%2

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (+3%).

WATCH

It's down 8% over the past year, now 17% below its 52-week high. That is right in line with the market.

Returns sit at the market level over three months (+0%) and so far this year (-4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-5.4% over three years and -28% over five), behind 70% of the market.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Warner Music Group Corp.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community

Loading charts…

02Growth

Is it actually growing, and how fast?

WMGWarner Music Group

Revenue FY25$6.7B

GROWTH RATING↗

AVERAGE55 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+4%5

Revenue, next 1Y+9%6

Revenue, next 3Y, CAGR+7%5

Revenue, next 5Y, CAGR+6%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+169%10

EPS growth, FY27E+7%6

EPS growth, FY28E+18%8

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 18%/yr vs revenue 7%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 55% of companies worldwide.

Revenue is set to grow 7%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 4%/yr over the last 3 years and is set to keep growing around 7%/yr.

Over five years revenue is set to grow 6%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE40 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+3%9

3-month return-0%6

YTD return-4%4

MID & LONG-TERM▾SCORE

% of 52-week high83%6

1-year return-8%4

3-year return-5%3

5-year return-28%2

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (+3%).

WATCH

It's down 8% over the past year, now 17% below its 52-week high. That is right in line with the market.

Returns sit at the market level over three months (+0%) and so far this year (-4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-5.4% over three years and -28% over five), behind 70% of the market.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Warner Music Group Corp.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community