ScoreWhy is Warner Music Group Corp. ?
1
Positive results in Jun 25
- INVENTORY TURNOVER RATIO(HY) Highest at 39.45 times
- DIVIDEND PER SHARE(HY) Highest at USD 5.12
- NET SALES(Q) Highest at USD 1,689 MM
2
With ROCE of 24.67%, it has a fair valuation with a 4.09 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -11.54%, its profits have risen by 3%
3
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -11.54% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Warner Music Group Corp. should be less than 10%
- Overall Portfolio exposure to Media & Entertainment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Warner Music Group Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Warner Music Group Corp.
-13.76%
-0.28
27.24%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.72%
EBIT Growth (5y)
41.92%
EBIT to Interest (avg)
5.06
Debt to EBITDA (avg)
4.34
Net Debt to Equity (avg)
6.53
Sales to Capital Employed (avg)
1.38
Tax Ratio
24.47%
Dividend Payout Ratio
83.23%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
18.45%
ROE (avg)
137.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
24.24
EV to EBIT
16.57
EV to EBITDA
12.53
EV to Capital Employed
4.09
EV to Sales
2.75
PEG Ratio
NA
Dividend Yield
2.70%
ROCE (Latest)
24.67%
ROE (Latest)
129.12%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 39.45 times
DIVIDEND PER SHARE(HY)
Highest at USD 5.12
NET SALES(Q)
Highest at USD 1,689 MM
-21What is not working for the Company
NET PROFIT(Q)
At USD 82 MM has Fallen at -54.33%
OPERATING CASH FLOW(Y)
Lowest at USD 753 MM
ROCE(HY)
Lowest at 54.66%
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.12 times
INTEREST(Q)
Highest at USD 43 MM
PRE-TAX PROFIT(Q)
Lowest at USD 87 MM
EPS(Q)
Lowest at USD -0.03
Here's what is working for Warner Music Group Corp.
Inventory Turnover Ratio
Highest at 39.45 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 5.12 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 1,689 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Depreciation
Highest at USD 96 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Warner Music Group Corp.
Pre-Tax Profit
At USD 87 MM has Fallen at -62.98%
over average net sales of the previous four periods of USD 235 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 82 MM has Fallen at -54.33%
over average net sales of the previous four periods of USD 179.53 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Operating Cash Flow
Lowest at USD 753 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
Highest at USD 43 MM
in the last five periods and Increased by 10.26% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 87 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
EPS
Lowest at USD -0.03
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 5.12 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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