Skip to Content

Warner Music Group Corp Ordinary Shares - Class A WMG

Morningstar Rating
$32.92 −0.42 (1.26%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Increasing Consumer Uptake of Streaming Services Can Help Drive Warner Music

Warner Music Group is the third largest of the three major global record labels, with Vivendi’s Universal Music first and Sony Music second. Like its peers, Warner increasingly depends on streaming. Streaming services delivered 65% of total recording segment revenue in fiscal 2023, up from 30% in fiscal 2016. This percentage actually understates the overall impact of streaming, as Warner Music does not break out the streaming portion of publishing revenue separately.

Price vs Fair Value

WMG is trading at a 11% discount.
Price
$32.11
Fair Value
$27.00
Uncertainty
High
1-Star Price
$59.50
5-Star Price
$91.80
Economic Moat
Jlwfpy
Capital Allocation
Qkzszdjds

Bulls Say, Bears Say

Bulls

Music streaming services like Spotify still have a long runway for subscriber growth, bringing more revenue into the music ecosystem for labels and artists alike.

Bears

Warner is overly dependent on streaming services that are diversifying their revenue streams into areas like podcasts. The streaming platforms will demand lower royalty rates in the future as their power grows.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if WMG is a good fit for your portfolio.

Trading Information

Previous Close Price
$33.34
Day Range
$32.7733.43
52-Week Range
$23.6238.01
Bid/Ask
$32.92 / $32.93
Market Cap
$17.05 Bil
Volume/Avg
219,234 / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
28.77
Price/Sales
2.73
Dividend Yield (Trailing)
2.01%
Dividend Yield (Forward)
2.04%
Total Yield
2.01%

Company Profile

Warner Music Group is the third largest of the three major global record labels, with Vivendi’s Universal Music first and Sony Music second. Warner’s larger segment, recorded music, consists of iconic labels like Atlantic Records, Warner Records, and Parlophone Records and popular artists such as Ed Sheeran, Cardi B, Dua Lipa, and Blake Shelton. Warner Chappell, the firm’s publishing arm, is the home to over 65,000 composers and songwriters with over 1 million copyrights represented. Warner is controlled by Access Industries, which owns an 84% economic interest and 99% of voting rights.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Mid Growth
Total Number of Employees
5,900

Competitors

Valuation

Metric
WMG
6758
SPOT
Price/Earnings (Normalized)
28.7718.33
Price/Book Value
37.262.1818.39
Price/Sales
2.731.273.53
Price/Cash Flow
19.587.59216.79
Price/Earnings
WMG
6758
SPOT

Financial Strength

Metric
WMG
6758
SPOT
Quick Ratio
0.520.471.24
Current Ratio
0.700.691.29
Interest Coverage
5.7465.25−11.98
Quick Ratio
WMG
6758
SPOT

Profitability

Metric
WMG
6758
SPOT
Return on Assets (Normalized)
6.30%2.50%−0.79%
Return on Equity (Normalized)
167.46%11.52%−2.65%
Return on Invested Capital (Normalized)
13.64%6.73%−3.06%
Return on Assets
WMG
6758
SPOT
See how this stock stacks up to its competitors with Morningstar Investor

Entertainment Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NFLX
Netflix IncGmfhvzjmtCqtsh$265.5 Bil
DIS
The Walt Disney CoXythwgsGlcmg$221.9 Bil
LYV
Live Nation Entertainment IncPywwkbmffWhncwbl$24.7 Bil
WBD
Warner Bros. Discovery Inc Ordinary Shares - Class AGtgyflrGkgw$21.1 Bil
NWSA
News Corp Class ARqfmqhtTgt$15.1 Bil
NWS
News Corp Class BWypwhmzhHcjl$15.1 Bil
SIRI
Sirius XM Holdings IncDdblbzpjJxskhd$15.0 Bil
FOXA
Fox Corp Class AYpyhnfbqsHzrrjl$14.2 Bil
FOX
Fox Corp Class BQgrwhhjdMvhthtg$14.2 Bil

Sponsor Center