Stock Analysis
Warner Music Group Corp. Class A Common StockWMG
P/E 24.44×· 5Y range 19.47–92.48×· bottom 6% of history
Sector: Consumer Cyclical · Industry: Services-Amusement & Recreation Services
AnalystsStrong Buy23 analystsP/E 24.4× sits at the 6th percentile of its 5.0513347022587265-year history.
Cash covers 13% of debt · Q3 2026.
PMP Verdict
Mixed fundamentals, cheap valuation
Strengths
- Quality85
- Profitability62
Risks
- Financial Health31
- Growth49
Mixed business trading cheap — priced for skepticism.
Market context
+2.3% today· Z 1.0σ· RVOL 1.5×
Bull Case
- ✓ROE 61.9% — efficient capital deployment
- ✓P/E 24.4× at bottom 6% of 5-year history
What's happening with WMG
Profile
Strong earnings quality and valuation; financial health and growth lag behind.
How is each axis scored?
- Valuation77/100 · Strong
- P/E vs own history (6th pct)25/25
- FCF yield (5.1%)20/25
- P/S (2.2x)20/25
- EV/EBIT (20.7x)12/25
- Growth49/100 · Weak
- Revenue CAGR (6.1%)12/25
- Net income CAGR (4.7%)6/25
- EPS CAGR 5Y (4.3%)6/25
- Fwd implied growth (59.1%)25/25
- Profitability62/100 · Moderate
- ROIC (14.7%)12/25
- ROE (61.9%)25/25
- Net margin (9.2%)13/25
- Operating margin (13.7%)12/25
- Financial Health31/100 · Weak
- Altman Z (1.52)10/25
- Current ratio (0.73)6/25
- Interest coverage (4.6x)10/25
- Net cash / debt (D/A 40%)5/25
- Quality85/100 · Strong
- Piotroski F (5/9)15/25
- Beneish M (-2.54)25/25
- FCF conversion (124%)25/25
- Margin stability (σ 5.2%)20/25
- Moat58/100 · Moderate
- ROIC >12% years (6/9 yrs)13/25
- Median gross margin (47.4%)20/25
- FCF-positive years (9/9 yrs)25/25
- Worst-year net margin (worst -10.6%)0/25
Risk Flags
- ⚠Altman Z 1.5 — distress-zone balance sheet
About Warner Music Group Corp. Class A Common Stock
Warner Music is the third-largest of the three major record companies. Show more
Recorded music accounts for most of the firm's revenue, with the segment housing notable record labels including Atlantic Records, Warner Records, Elektra Records. Some of the most successful current artists signed to record deals with Warner include Ed Sheeran, Bruno Mars, Cardi B, and Dua Lipa. Warner's remaining revenue comes from its publishing business, where Warner Chappell represents more than 180,000 songwriters and composers, some of whom are also Warner recording artists but many of whom are not recording artists or are attached to other labels. Warner Chappell controls more than 1 million musical compositions. Access Industries controls 98% of Warner's voting rights, while holding a 72% economic interest.
Headquarters: NEW YORK, NY · Employees: 5,500 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
77B+P/E (TTM)24.4xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 19.5x–92.5x · 6th pct
P/FCF27.4xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield5.1%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.9%–6.4% · 88th pct
P/S (TTM)2.25xB
Grade B: FairPrice / TTM Revenue (own statements) — vs own 5Y history: 1.8x–5.0x · 20th pct
EV/EBIT20.7xC
Grade C: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 16.4x–47.4x · 10th pct
EV/Sales2.8xB
Grade B: FairEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E15.4xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio15.13xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio0.51A
Grade A: CheapFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.46%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio59.5%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
62BROIC14.7%C
Grade C: AverageNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE61.9%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA6.5%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin9.2%C
Grade C: AverageNet Income / Revenue
Operating Margin13.7%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin45.8%C
Grade C: AverageGross Profit / Revenue
FCF Margin11.4%C
Grade C: AverageFCF / Revenue
True FCF Margin10.8%C
Grade C: AverageTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
49D+Revenue CAGR6.1%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR4.7%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)4.3%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth59.1%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+1.9%B
Grade B: FlatShare count change over 5Y
SBC / Net Income6.5%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.6%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
31DAltman Z-Score1.52D
Grade D: DistressBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.73xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.52xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage4.6xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment5.1yC
Grade C: AverageYears to repay net debt via FCF
Net Debt/EBIT4.3xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity4.53xD
Grade D: HighDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.13xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
85APiotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.54A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion124.4%A
Grade A: StrongFCF / Net Income
Margin Stability5.2%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue1.4%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.71xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Hertz Noreena Filed | Hertz Noreena | Grant / award | +45 | |
Kreiz Ynon Filed | Kreiz Ynon | Grant / award | +45 | |
Dubuc Nancy Filed | Dubuc Nancy | Grant / award | +45 | |
Kurzman Cecelia Filed | Kurzman Cecelia | Grant / award | +84 | |
Dopfner Mathias Filed | Dopfner Mathias | Grant / award | +45 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Lynton Michael Filed | Lynton Michael | Grant / award | +122 | |
Kreiz Ynon Filed | Kreiz Ynon | Grant / award | +38 | |
Hertz Noreena Filed | Hertz Noreena | Grant / award | +38 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
58CROIC >12% Years6/9 yrsC
Grade C: ModerateShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)47.4%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years9/9 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-10.6%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$1.28
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$1.18
Cash & short-term investments per share (Finnhub)
Book Value / Share$1.63
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$4.92B
Total debt obligations (short + long term)
Cash & Equiv.$618.00M
Cash and short-term investments
Net Debt$4.30B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$1.09B
Shareholders' equity (book value)
Asset / Liability1.11xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$16.43B
Current Market Capitalization
Beta1.35C
Grade C: VolatilePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Warner Music Group Corp. Class A Common Stock (WMG)
WMG is up 2.31% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for Warner Music Group Corp. Class A Common Stock. Altman Z-Score of 1.52 is below the 1.81 distress threshold — an elevated financial-risk flag. Beneish M-Score of -2.54 suggests a low likelihood of earnings manipulation. Takes ~5.1 years to repay net debt from free cash flow.
- Warner Music Group Corp. Class A Common Stock posted a net loss in 1 of 9 available completed fiscal years (2017–2025).
- At a valuation score of 77/100, WMG trades near the cheapest end of its own historical range (P/E 24.4).
- Return on equity of 61.9% is well above the market average.
- The stock currently yields 2.5% in dividends.
See how WMG ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all WMG moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | Regular | 30.47 | +5.40% | 3.86 |
| Oct 15 | After-hours | 30.69 | +6.16% | 4.40 |
| Oct 5 | Regular | 27.63 | +3.02% | 2.30 |
| Oct 5 | After-hours | 27.63 | +3.04% | 2.32 |
Frequently Asked Questions about WMG
What is the current Warner Music Group Corp. Class A Common Stock (WMG) stock price?
WMG is trading at $31.40 at the last market close, up 2.31% on the session. PreMarketPrice tracks WMG pre-market, intraday and after-hours prices.
Is WMG stock a buy right now?
PreMarketPrice's quantitative model rates Warner Music Group Corp. Class A Common Stock's financial health at 31/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is WMG stock overvalued?
Warner Music Group Corp. Class A Common Stock trades at a trailing P/E of 24.4 and our valuation score rates it 77/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Warner Music Group Corp. Class A Common Stock report earnings?
No confirmed earnings date is currently scheduled for WMG. The Earnings section lists recent reports and updates as dates are announced.
What sector does Warner Music Group Corp. Class A Common Stock operate in?
Warner Music Group Corp. Class A Common Stock operates in the Consumer Cyclical sector, within the Services-Amusement & Recreation Services industry. The Related Stocks section lists sector peers for comparison.
What does Warner Music Group Corp. Class A Common Stock do?
Warner Music is the third-largest of the three major record companies.
About Warner Music Group Corp. Class A Common Stock (WMG) Stock
Warner Music Group Corp. Class A Common Stock (WMG) is a US-listed stock operating in the Consumer Cyclical sector, specifically the Services-Amusement & Recreation Services industry. As of the latest update, Warner Music Group Corp. Class A Common Stock is trading at $31.40, up 2.31% on the day with a market capitalization of $16.4 billion. The financial health score for WMG is 31/100, which indicates weak financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for WMG stock.
WMG Stock Analysis & Key Metrics
On PreMarketPrice, you can track Warner Music Group Corp. Class A Common Stock (WMG) across multiple dimensions:
- Pre-market price & movement: Real-time WMG stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for WMG with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Warner Music Group Corp. Class A Common Stock across multiple reporting periods.
- Financial health score: A composite score of 31/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for WMG.
- Sector peers: Compare WMG against 6 other consumer cyclical stocks on key financial metrics.
Is WMG a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Warner Music Group Corp. Class A Common Stock (WMG) as an investment. The financial health score of 31/100 suggests weak financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Warner Music Group Corp. Class A Common Stock (WMG) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.