Warner Music Group Corp. (WMG) Stock

About Warner Music Group Corp.

Warner Music Group Corp. (WMG), established in 1929 and based in New York City, functions as a prominent global entertainment enterprise primarily focused on music. Its operations span the United States, the United Kingdom, Germany, and numerous other international markets. The company's activities are organized into two distinct divisions: Recorded Music and Music Publishing. The Recorded Music division is dedicated to identifying and cultivating emerging musical talent. It handles the subsequent marketing, promotional campaigns, distribution logistics, sales, and licensing of the recordings produced by these artists. This segment also actively markets its vast catalog of existing music, issuing compilations, re-releases of classic tracks and videos, and previously unreleased material. Its operations are chiefly conducted through a diverse portfolio of renowned record labels, including but not limited to Warner Records, Atlantic Records, Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin' Records, Warner Classics, and Warner Music Nashville. Music and video products are distributed and sold by this division to a wide array of channels, encompassing direct retailers, wholesale distributors, independent labels, various distribution centers and joint ventures, physical retail locations, online stores, streaming platforms, and digital download services. The Music Publishing division is responsible for owning and acquiring the intellectual property rights to approximately one million musical compositions. This extensive collection includes iconic pop hits, American classics, folk melodies, and scores for motion pictures and theatrical productions. Its comprehensive catalog represents the work of roughly 100,000 songwriters and composers, covering an expansive spectrum of musical styles such as pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative, and gospel. Furthermore, this segment provides administrative services for the musical scores and soundtracks associated with various external television and film production companies and studios.

Warner Music Group Corp. is led by CEO Robert Kyncl, employs 5,500 people, headquartered in New York City, US, publicly traded since 2020.

Warner Music Group Corp. (WMG) stock trades at $29.20 with a market capitalization of $15.24B. The stock is valued at a price-to-earnings (P/E) ratio of 34.06, price-to-book of 20.22, price-to-sales of 2.09. Over the past 52 weeks the stock has ranged between $23.34 and $35.42, and currently trades 17.6% below its 52-week high. It pays a dividend yielding 2.66%.

On profitability, Warner Music Group Corp. generates a return on equity (ROE) of 50.97% — well above the market average, a sign of a high-quality business, return on capital employed of 91.68%, an operating margin of 12.75%, a net profit margin of 6.34%.

In its most recent fiscal year, Warner Music Group Corp. reported annual revenue of $6.7B, net profit of $365.0M, revenue has compounded at 8.5% a year over the last five years.

The balance sheet shows a debt-to-equity ratio of 6.70 — a leveraged balance sheet worth monitoring, a current ratio of 0.66, total assets of $9.8B, $532.0M in cash and equivalents.

WMG has an average daily trading volume of 2,410,000 shares, a beta of 1.27.

Official website: www.wmg.com