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Warner Music Group Corp
NASDAQ:WMG

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Warner Music Group Corp Logo
Warner Music Group Corp
NASDAQ:WMG
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Price: 33.31 USD +0.27% Market Closed
Updated: Dec 10, 2022

Intrinsic Value

The intrinsic value of one WMG stock under the Base Case scenario is 27.24 USD. Compared to the current market price of 33.31 USD, Warner Music Group Corp is Overvalued by 18%.

The Intrinsic Value is calculated as the average of the two valuation methods:

WMG Intrinsic Value
Base Case
27.24 USD
Overvaluation 18%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Fundamental Analysis

WMG Profitability Score
Profitability Due Diligence

Warner Music Group Corp's profitability score is 63/100. The higher the profitability score, the more profitable the company is.

Low 3-Year Average ROIC
Positive Net Income
Positive Operating Income
Positive ROIC
63/100
Profitability
Score

Warner Music Group Corp's profitability score is 63/100. The higher the profitability score, the more profitable the company is.

WMG Solvency Score
Solvency Due Diligence

Warner Music Group Corp's solvency score is 26/100. The higher the solvency score, the more solvent the company is.

High D/E
Average Interest Coverage
Positive Net Debt
Low Altman Z-Score
26/100
Solvency
Score

Warner Music Group Corp's solvency score is 26/100. The higher the solvency score, the more solvent the company is.

Financials
Efficiency
48%
Gross Margin
12%
Operating Margin
9%
Net Margin
7%
FCF Margin
602%
ROE
8%
ROIC
Other

WMG Capital Structure
Warner Music Group Corp

Market Capitalization 17.1B USD
Total Debt 3.7B USD
Minority Interest 16M USD
Preferred Equity 0 USD
Cash and Equivalents 584M USD
Short-Term Investments 0 USD
Enterprise Value 20.3B USD

Wall St
Price Targets

WMG Price Targets Summary
Warner Music Group Corp

Wall Street analysts forecast WMG stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for WMG is 35.28 USD with a low forecast of 26.26 USD and a high forecast of 54.6 USD.

Lowest
Price Target
26.26 USD
21% Downside
Average
Price Target
35.28 USD
6% Upside
Highest
Price Target
54.6 USD
64% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

WMG Competitors
Warner Music Group Corp

WMG Suppliers & Customers
Warner Music Group Corp

Warner Music Group Corp has 23 key suppliers from 6 countries and 7 industries. The majority of these suppliers are located in the United States of America, with the largest number of suppliers in the Media industry.

Warner Music Group Corp has 1 key customers from 1 countries and 1 industries. The majority of these customers are located in the United States of America, with the largest number of customers in the Leisure Products industry.

Customers Map

Ownership

WMG Insider Trading
Buy and sell transactions by insiders

Warner Music Group Corp insiders have only sold shares in the past 12 months.

During the last 12 months Warner Music Group Corp insiders have not bought any shares, and sold 80M USD worth of shares. The last transaction was made on Dec 10, 2022 by Benet Lincoln E (Director), who sold 510k USD worth of WMG shares.

Sold
0-3
months
1.2M USD
1
3-6
months
0 USD
0
6-9
months
762k USD
1
9-12
months
78.1M USD
2
Bought
0-3
months
0
0 USD
3-6
months
No Insider Transactions
0
0 USD
6-9
months
0
0 USD
9-12
months
0
0 USD
Cumulative Transactions Amount
Period Sold Bought Net
3 Months
1.2M USD
N/A
-1.2M
6 Months
1.2M USD
N/A
-1.2M
9 Months
1.9M USD
N/A
-1.9M
12 Months
80M USD
N/A
-80M
Purchases
4
Sales
66
Why is insider trading important?

Shareholder Return

WMG Price
Warner Music Group Corp

1M 1M
+22%
6M 6M
+22%
1Y 1Y
-17%
3Y 3Y
+15%
5Y 5Y
+15%
Annual Price Range
33.31
52w Low
22.35
52w High
43.8
Price Metrics
Average Annual Return 23.4%
Standard Deviation of Annual Returns
N/A
Max Drawdown -54%
Shares Statistics
Market Capitalization 17.1B USD
Shares Outstanding 514 849 449
Percentage of Shares Shorted 4.32%

Company Profile

Warner Music Group Corp

Country

United States of America

Industry

Media

Market Cap

17.1B USD

Dividend Yield

1.91%

Description

Warner Music Group Corp. engages in the publishing and recording of music. The company is headquartered in New York City, New York and currently employs 5,900 full-time employees. The company went IPO on 2020-06-03. The Company’s segments include Recorded Music and Music Publishing. The Recorded Music segment consists of the discovery and development of recording artists and the related marketing, promotion, distribution, sale, and licensing of music created by such recording artists. In the United States, its Recorded Music business is conducted principally through its record labels, such as Atlantic Records and Warner Records. The company also conducts its Recorded Music business through a collection of additional record labels including Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Nonesuch, Parlophone, Reprise, Sire, Records, Warner Classics and Warner Music Nashville. The Music Publishing segment is focused on marketing, promoting, distributing, and licensing a particular recording of a musical composition. The operations of its Music Publishing business are conducted through Warner Chappell Music, its global music publishing company.

Contact

NEW YORK
New York City
1633 Broadway
+12122752000.0
http://www.wmg.com/

IPO

2020-06-03

Employees

5 900

Officers

CEO & Director
Mr. Stephen Forbes Cooper
Exec. VP & CFO
Mr. Eric Joshua Levin
Chief Exec. Officer of Warner Recorded Music
Mr. Max Lousada
Co-Chair & CEO of Warner Chappell Music
Mr. Guy Moot
Co-Chair & COO of Warner Chappell Music
Ms. Carianne Marshall
Sr. VP & Head of Investor Relations
Mr. Kareem Chin
Show More
Exec. VP, Gen. Counsel & Sec.
Mr. Paul Martin Robinson Esq., J.D.
Sr. VP, Deputy Gen. Counsel & Chief Compliance Officer
Trent N. Tappe Esq.
Exec. VP & Chief Communications Officer
Mr. James Steven
VP of Digital Strategy & Corp. Devel.
Mr. Michael Drexler
Show Less

See Also

Similar Stocks
What is the Intrinsic Value of one WMG stock?

The intrinsic value of one WMG stock under the Base Case scenario is 27.24 USD.

Is WMG stock undervalued or overvalued?

Compared to the current market price of 33.31 USD, Warner Music Group Corp is Overvalued by 18%.