Is Warner Music Stock a Good Investment?
Warner Music Investment Advice | WMG |
- Examine Warner Music's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Warner Music's leadership team and their track record. Good management can help Warner Music navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Movies & Entertainment space and any emerging trends that could impact Warner Music's business and its evolving consumer preferences.
- Compare Warner Music's performance and market position to its competitors. Analyze how Warner Music is positioned in terms of product offerings, innovation, and market share.
- Check if Warner Music pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Warner Music's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Warner Music Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Warner Music Group is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Warner Music Stock
Researching Warner Music's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 94.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.18. Warner Music Group last dividend was issued on the 19th of November 2024.
To determine if Warner Music is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Warner Music's research are outlined below:
| Warner Music Group generated a negative expected return over the last 90 days | |
| Warner Music Group has 4.29 B in debt. Warner Music Group has a current ratio of 0.62, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Warner to invest in growth at high rates of return. | |
| Over 94.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from theverge.com: What Spotify took from us by giving us everything |
Warner Music Quarterly Accounts Payable |
|
Warner Music uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Warner Music Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Warner Music's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of November 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Warner Music's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Warner Music's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-11-23 | 2020-09-30 | 0.06 | 0.0392 | -0.0208 | 34 | ||
2023-08-08 | 2023-06-30 | 0.2 | 0.23 | 0.03 | 15 | ||
2023-02-09 | 2022-12-31 | 0.26 | 0.23 | -0.03 | 11 | ||
2022-05-10 | 2022-03-31 | 0.21 | 0.18 | -0.03 | 14 | ||
2021-08-03 | 2021-06-30 | 0.15 | 0.12 | -0.03 | 20 | ||
2011-03-31 | 2011-03-31 | -0.28 | -0.25 | 0.03 | 10 | ||
2024-11-21 | 2024-09-30 | 0.28 | 0.3132 | 0.0332 | 11 | ||
2024-08-07 | 2024-06-30 | 0.27 | 0.32 | 0.05 | 18 |
Warner Music Target Price Consensus
Warner target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Warner Music's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 19 | Buy |
Most Warner analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Warner stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Warner Music Group, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationWarner Music Target Price Projection
Warner Music's current and average target prices are 30.24 and 35.63, respectively. The current price of Warner Music is the price at which Warner Music Group is currently trading. On the other hand, Warner Music's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Warner Music Market Quote on 17th of January 2025
Target Price
Analyst Consensus On Warner Music Target Price
Warner Music Analyst Ratings
Warner Music's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Warner Music stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Warner Music's financials, market performance, and future outlook by experienced professionals. Warner Music's historical ratings below, therefore, can serve as a valuable tool for investors.Know Warner Music's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Warner Music is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Warner Music Group backward and forwards among themselves. Warner Music's institutional investor refers to the entity that pools money to purchase Warner Music's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | D1 Capital Partners L.p. | 2024-09-30 | 5.3 M | Independent Franchise Partners Llp | 2024-09-30 | 5.1 M | Harris Associates L.p. | 2024-09-30 | 4.1 M | Caledonia (private) Investments Pty Ltd | 2024-09-30 | 3.7 M | Geode Capital Management, Llc | 2024-09-30 | 2.6 M | State Street Corp | 2024-09-30 | 2.2 M | Stephens Inv Mgmt Group Llc | 2024-09-30 | 2.2 M | Southeastern Asset Management Inc | 2024-09-30 | 1.8 M | Fairview Capital Investment Management | 2024-09-30 | 1.8 M | Vanguard Group Inc | 2024-09-30 | 13.8 M | Capital World Investors | 2024-09-30 | 13.3 M |
Warner Music's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 15.56 B.Market Cap |
|
Warner Music's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.30) | (0.29) | |
| Return On Capital Employed | 0.75 | 0.79 | |
| Return On Assets | (0.30) | (0.29) | |
| Return On Equity | (0.85) | (0.81) |
Determining Warner Music's profitability involves analyzing its financial statements and using various financial metrics to determine if Warner Music is a good buy. For example, gross profit margin measures Warner Music's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Warner Music's profitability and make more informed investment decisions.
Evaluate Warner Music's management efficiency
Warner Music Group has Return on Asset of 0.0742 % which means that on every $100 spent on assets, it made $0.0742 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 1.2505 %, implying that it generated $1.2505 on every 100 dollars invested. Warner Music's management efficiency ratios could be used to measure how well Warner Music manages its routine affairs as well as how well it operates its assets and liabilities. The Warner Music's current Return On Capital Employed is estimated to increase to 0.79, while Return On Tangible Assets are forecasted to increase to (0.29). At this time, Warner Music's Non Currrent Assets Other are most likely to increase significantly in the upcoming years. The Warner Music's current Other Current Assets is estimated to increase to about 718.5 M, while Non Current Assets Total are projected to decrease to roughly 4.8 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 8.93 | 9.38 | |
| Tangible Book Value Per Share | 8.93 | 9.38 | |
| Enterprise Value Over EBITDA | 4.44 | 4.66 | |
| Price Book Value Ratio | 9.53 | 9.05 | |
| Enterprise Value Multiple | 4.44 | 4.66 | |
| Price Fair Value | 9.53 | 9.05 | |
| Enterprise Value | 15 B | 14 B |
Warner Music Group has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Basic technical analysis of Warner Stock
As of the 17th of January 2025, Warner Music maintains the Standard Deviation of 1.55, mean deviation of 1.01, and Market Risk Adjusted Performance of (0.67). Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Warner Music Group, as well as the relationship between them. Please check out Warner Music Group market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Warner Music Group is priced fairly, providing market reflects its latest price of 30.24 per share. Given that Warner Music Group has information ratio of (0.03), we strongly advise you to confirm Warner Music Group's prevalent market performance to make sure the company can sustain itself at a future point.Warner Music's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Warner Music insiders, such as employees or executives, is commonly permitted as long as it does not rely on Warner Music's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Warner Music insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Carianne Marshall over a week ago Disposition of 12504 shares by Carianne Marshall of Warner Music at 31.02 subject to Rule 16b-3 | ||
Max Lousada over three months ago Disposition of 250769 shares by Max Lousada of Warner Music at 28.09 subject to Rule 16b-3 | ||
Max Lousada over three months ago Disposition of 7359 shares by Max Lousada of Warner Music at 28.24 subject to Rule 16b-3 | ||
Max Lousada over three months ago Disposition of 135324 shares by Max Lousada of Warner Music at 28.17 subject to Rule 16b-3 | ||
Ai Entertainment Holdings Llc over six months ago Disposition of 17381 shares by Ai Entertainment Holdings Llc of Warner Music at 41.25 subject to Rule 16b-3 | ||
Carianne Marshall over six months ago Acquisition by Carianne Marshall of 21834 shares of Warner Music subject to Rule 16b-3 | ||
Castellani Bryan over a year ago Acquisition by Castellani Bryan of 34193 shares of Warner Music subject to Rule 16b-3 |
Warner Music's Outstanding Corporate Bonds
Warner Music issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Warner Music Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Warner bonds can be classified according to their maturity, which is the date when Warner Music Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Warner Music's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Warner Music's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.67) | |||
| Mean Deviation | 1.01 | |||
| Coefficient Of Variation | (4,475) | |||
| Standard Deviation | 1.55 | |||
| Variance | 2.4 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.04) | |||
| Treynor Ratio | (0.68) | |||
| Maximum Drawdown | 9.65 | |||
| Value At Risk | (2.05) | |||
| Potential Upside | 2.08 | |||
| Skewness | (2.28) | |||
| Kurtosis | 8.83 |
| Risk Adjusted Performance | (0.01) | |||
| Market Risk Adjusted Performance | (0.67) | |||
| Mean Deviation | 1.01 | |||
| Coefficient Of Variation | (4,475) | |||
| Standard Deviation | 1.55 | |||
| Variance | 2.4 | |||
| Information Ratio | (0.03) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.04) | |||
| Treynor Ratio | (0.68) | |||
| Maximum Drawdown | 9.65 | |||
| Value At Risk | (2.05) | |||
| Potential Upside | 2.08 | |||
| Skewness | (2.28) | |||
| Kurtosis | 8.83 |
Consider Warner Music's intraday indicators
Warner Music intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Warner Music stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 13027.8 | |||
| Daily Balance Of Power | 0.4667 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 30.21 | |||
| Day Typical Price | 30.22 | |||
| Price Action Indicator | 0.14 | |||
| Period Momentum Indicator | 0.21 |
Warner Music Corporate Filings
F4 | 7th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 3rd of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 13th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 24th of October 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
Warner Stock media impact
Far too much social signal, news, headlines, and media speculation about Warner Music that are available to investors today. That information is available publicly through Warner media outlets and privately through word of mouth or via Warner internal channels. However, regardless of the origin, that massive amount of Warner data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Warner Music news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Warner Music relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Warner Music's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Warner Music alpha.
Warner Music Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Warner Music can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Warner Music Group Historical Investor Sentiment
Investor biases related to Warner Music's public news can be used to forecast risks associated with an investment in Warner. The trend in average sentiment can be used to explain how an investor holding Warner can time the market purely based on public headlines and social activities around Warner Music Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Warner Music's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Warner Music and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Warner Music news discussions. The higher the estimate score, the more favorable the investor's outlook on Warner Music.
Warner Music Maximum Pain Price Across April 17th 2025 Option Contracts
Warner Music's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Warner Music close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Warner Music's options.
Warner Music Corporate Management
| Max Lousada | Chief Music | Profile | |
| Kareem Chin | Senior Relations | Profile | |
| Carianne Marshall | CoChair Music | Profile | |
| Trent Esq | Deputy VP | Profile | |
| JD Esq | Executive Counsel | Profile | |
| Timothy Matusch | Executive Operations | Profile | |
| Eric Levin | Ex CFO | Profile |
Already Invested in Warner Music Group?
The danger of trading Warner Music Group is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Warner Music is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Warner Music. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Warner Music Group is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Warner Music Group is a strong investment it is important to analyze Warner Music's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Warner Music's future performance. For an informed investment choice regarding Warner Stock, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Warner Music Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Warner Music. If investors know Warner will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Warner Music listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.137 | Earnings Share 0.83 | Revenue Per Share | Quarterly Revenue Growth (0.01) | Return On Assets |
The market value of Warner Music Group is measured differently than its book value, which is the value of Warner that is recorded on the company's balance sheet. Investors also form their own opinion of Warner Music's value that differs from its market value or its book value, called intrinsic value, which is Warner Music's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Warner Music's market value can be influenced by many factors that don't directly affect Warner Music's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Warner Music's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Warner Music is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Warner Music's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.