Warner Music Group Corp. (WMG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Warner Music Group Corp.

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Professional Diversity Network, Inc.

Leafly Holdings, Inc.

Travelzoo Inc.

ARC Document Solutions, Inc.

LiveOne, Inc.

CompoSecure, Inc.

Why is Warner Music Group Corp. ?

With a growth in Net Profit of 4.02%, the company declared Very Positive results in Mar 26

DEBT-EQUITY RATIO (HY) Lowest at 569.11 %
DIVIDEND PER SHARE(HY) Highest at USD 5.24
RAW MATERIAL COST(Y) Fallen by 0.68% (YoY)

With ROCE of 28.06%, it has a fair valuation with a 3.67 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 6.95%, its profits have fallen by -19.7%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 6.95% in the last 1 year, much lower than market (S&P 500) returns of 25.41%

Real-Time Research Report

Verdict Report

How 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Warner Music Group Corp.

6.95%

-0.26

32.09%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.66%

EBIT Growth (5y)

52.39%

EBIT to Interest (avg)

5.06

Debt to EBITDA (avg)

4.34

Net Debt to Equity (avg)

6.53

Sales to Capital Employed (avg)

1.37

Tax Ratio

24.47%

Dividend Payout Ratio

105.25%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

18.45%

ROE (avg)

137.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

17.24

EV to EBIT

13.07

EV to EBITDA

9.93

EV to Capital Employed

3.67

EV to Sales

2.34

PEG Ratio

Dividend Yield

3.12%

ROCE (Latest)

28.06%

ROE (Latest)

98.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 569.11 %

DIVIDEND PER SHARE(HY)

Highest at USD 5.24

RAW MATERIAL COST(Y)

Fallen by 0.68% (YoY

NET PROFIT(9M)

Higher at USD 774.29 MM

CASH AND EQV(HY)

Highest at USD 1,492 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 55.76 times

EPS(Q)

Highest at USD 0.34

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 55.69%

Here's what is working for Warner Music Group Corp.

Debt-Equity Ratio

Lowest at 569.11 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 5.24 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

EPS

Highest at USD 0.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 1,492 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 55.76 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit

Higher at USD 774.29 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (USD MM)

Raw Material Cost

Fallen by 0.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Warner Music Group Corp.

Dividend Payout Ratio

Lowest at 55.69%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)