A Business at a Glance
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Warner Music Group Corp. (the “Company”) was formed on November 21, 2003. We are the direct parent of WMG Holdings Corp. (“Holdings”), which is the direct parent of WMG Acquisition Corp. (“Acquisition Corp.”). Acquisition Corp. is one of the world’s major music entertainment companies. The Company and Holdings are holding companies that conduct substantially all of their business operations through their subsidiaries. The terms “we,” “us,” “our,” “ours” and the “Company” refer collectively to Warner Music Group Corp. and its consolidated subsidiaries, unless the context refers only to Warner Music Group Corp. as a corporate entity. Acquisition of Warner Music Group by Access Industries Pursuant to the Agreement and Plan of Merger, dated as of May 6, 2011 (the “Merger Agreement”), by and among the Company, AI Entertainment Holdings LLC (formerly Airplanes Music LLC), a Delaware limited liability company (“Parent”) and an affiliate of Access Industries, Inc.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.9B | 6.7B | 6.4B | 6.0B | 5.9B | 5.3B |
| Net Income | 305M | 365M | 435M | 430M | 551M | 304M |
| EPS | $0.00 | - | - | - | - | - |
| Free Cash Flow | 663M | 539M | 638M | 560M | 607M | 545M |
| ROIC | 208.5% | 12.7% | 16.9% | 15.8% | 16.6% | 14.4% |
| Gross Margin | - | 45.8% | 47.8% | 47.4% | 48.0% | 48.3% |
| Debt/Equity | 0.43 | 6.66 | 8.28 | 13.88 | 26.40 | 118.58 |
| Dividends/Share | $0.00 | $0.73 | $0.69 | $0.65 | $0.61 | $0.51 |
| Operating Income | 768M | 694M | 823M | 790M | 714M | 609M |
| Operating Margin | 11.2% | 10.3% | 12.8% | 13.1% | 12.1% | 11.5% |
| ROE | 42.4% | 62.7% | 105.5% | 187.4% | 362.5% | 980.6% |
| Shares Outstanding | 0M | - | - | - | - | - |
Warner Music Group Corp. passes 3 of 9 quality checks, indicating weak fundamentals.
Warner Music Group Corp. trades at 50.3x trailing earnings, compared to its 15-year median P/E of 36.3x, suggesting it is currently Fair relative to its historical range. The company's 5-year average ROIC is 15.3% with a gross margin of 47.5%. Total shareholder yield (dividends) is 2.5%. At current prices, the estimated annualized return to fair value is +20.7%.
Warner Music Group Corp. (WMG) has a current P/E ratio of 50.3, compared to its historical median P/E of 36.3. The stock is currently considered Fair based on its historical valuation range.
Warner Music Group Corp. (WMG) has a 5-year average return on invested capital (ROIC) of 15.3%. This indicates strong capital allocation and a potential competitive advantage.
Yes, Warner Music Group Corp. (WMG) pays a dividend with a trailing twelve-month yield of 2.55%.
Based on historical P/E analysis, Warner Music Group Corp. (WMG) appears fair. The current P/E of 50.3 is 39% above its historical median of 36.3. The estimated fair value CAGR (P/E method) is 20.7%.
Warner Music Group Corp. (WMG) operates in the Services-Amusement & Recreation Services industry, within the Consumer Cyclical sector.
Warner Music Group Corp. (WMG) reported annual revenue of $6.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Warner Music Group Corp. (WMG) has a net profit margin of 5.4%. This is a modest margin.
Warner Music Group Corp. (WMG) generated $539 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Warner Music Group Corp. (WMG) has a debt-to-equity ratio of 6.66. This indicates higher leverage, which may increase financial risk.
Warner Music Group Corp. (WMG) has a return on equity (ROE) of 62.7%. This indicates the company generates strong returns for shareholders.
Warner Music Group Corp. (WMG) has a 5-year average gross margin of 47.5%. This indicates decent pricing power.
The Ledger Terminal provides 15 years of financial data for Warner Music Group Corp. (WMG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.