-1.77%
2.13%
-0.94%
5.50%
-13.24%
-25.51%
5.11%
AI Spotlight on WMG
Company Description
Warner Music Group Corp.operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally.The company operates through Recorded Music and Music Publishing segments.
The Recorded Music segment is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by such recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials; and conducts its operation primarily through a collection of record labels, such as Warner Records and Atlantic Records, as well as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Fueled by Ramen, Nonesuch, Parlophone, Reprise, Roadrunner, Sire, Spinnin' Records, Warner Classics, and Warner Music Nashville.This segment markets, distributes, and sells music and video products to retailers and wholesale distributors; independent labels to retail and wholesale distributors; and various distribution centers and ventures, as well as retail outlets, online physical retailers, streaming services, and download services.The Music Publishing segment owns and acquires rights to approximately one million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions.
Its catalog includes approximately 100,000 songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative, and gospel.This segment also administers the music and soundtracks of various third-party television and film producers and studios.The company was founded in 1929 and is headquartered in New York, New York.
Market Data
| Last Price | 31.66 |
| Change Percentage | -1.77% |
| Open | 32.27 |
| Previous Close | 32.23 |
| Market Cap ( Millions) | 16453 |
| Volume | 1105305 |
| Year High | 38.05 |
| Year Low | 27.06 |
| M A 50 | 31.44 |
| M A 200 | 31.02 |
Financial Ratios
| FCF Yield | 2.73% |
| Dividend Yield | 2.21% |
| ROE | 91.72% |
| Debt / Equity | 827.61% |
| Net Debt / EBIDTA | 307.62% |
| Price To Book | 31.56 |
| Price Earnings Ratio | 37.58 |
| Price To FCF | 36.64 |
| Price To sales | 2.56 |
| EV / EBITDA | 17.16 |
News
- Jan -30 - Warner Music Group Corp. (WMG) Reports Next Week: Wall Street Expects Earnings Growth
- Jan -09 - Warner Music Group Corp. to Conduct Earnings Conference Call on Thursday, February 6, 2025
- Dec -20 - The Latin GRAMMY Cultural Foundation® Announces the 2025 Warner Music Latina Scholarship
- Nov -23 - Downgrading Warner Music Group As Spotify And Live Nation Strike A Chord
- Nov -22 - These Analysts Cut Their Forecasts On Warner Music Following Q4 Earnings
- Nov -22 - Warner Music Group Corp. (WMG) Q4 2024 Earnings Call Transcript
- Nov -21 - Warner Music Group Corp. (WMG) Misses Q4 Earnings Estimates
- Nov -21 - Warner Music Group Corp. Reports Results for Fiscal Fourth Quarter and Full Year Ended September 30, 2024
- Nov -08 - Warner Music Group Corp. Announces Quarterly Cash Dividend
- Nov -06 - M&A will have big uptick in Trump administration, says Warner Music Group chair Michael Lynton
- Oct -22 - Warner Music Group Corp. to Conduct Earnings Conference Call on Thursday, November 21, 2024
- Oct -04 - Warner Music Hit By Streaming Volatility And Execution Risks: Analyst
- Sep -23 - ATLANTIC MUSIC GROUP BEGINS NEW ERA
- Sep -20 - Warner Music Expands Layoffs in Restructuring Push
- Sep -19 - Warner Music slashing 750 jobs — or 13% of workforce — in major restructuring
- Sep -03 - 4 Film & Television Production Stocks to Watch on Dull Industry Trends
- Aug -20 - Rival Paramount bid emerges from former Warner Music boss
- Aug -15 - Warner Music Group Corp. Announces Quarterly Cash Dividend
- Aug -08 - Big 3 Music Giant Warner: Streaming Boom Sends Shares Higher
- Aug -07 - Warner Music Group Corp. (WMG) Q3 2024 Earnings Call Transcript
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Recorded Music
Expected Growth : 7 %
What the company do ?
Recorded Music from Warner Music Group Corp. refers to the production, distribution, and sale of physical and digital music recordings, including albums, singles, and compilations.
Why we expect these perspectives ?
Warner Music Group's 7% growth in Recorded Music is driven by increasing streaming revenue, fueled by rising subscription rates and growing popularity of platforms like Spotify and Apple Music. Additionally, the company's strategic investments in emerging markets, artist development, and digital marketing are contributing to the segment's growth.
Segment n°2 -> Music Publishing
Expected Growth : 5 %
What the company do ?
Warner Music Group Corp.'s Music Publishing division manages song catalogs, licenses compositions, and collects royalties for artists and songwriters.
Why we expect these perspectives ?
Warner Music Group Corp.'s Music Publishing segment growth is driven by increasing demand for licensed music in films, TV shows, and commercials, as well as the rise of streaming services and social media platforms. Additionally, the company's strategic acquisitions and partnerships, such as the purchase of SONGS Music Publishing, have expanded its catalog and increased its market share.
Segment n°3 -> Corporate Expenses and Eliminations
Expected Growth : 4 %
What the company do ?
Corporate Expenses and Eliminations from Warner Music Group Corp. refers to the costs and adjustments made at the corporate level, excluding segment-specific expenses, to provide a comprehensive view of the company's financial performance.
Why we expect these perspectives ?
Warner Music Group Corp.'s 4% growth in Corporate Expenses and Eliminations is driven by increased investments in digital transformation, expansion of global footprint, and higher personnel costs. Additionally, rising marketing and advertising expenses to promote new artists and albums, as well as costs associated with strategic acquisitions, contribute to the growth.
Warner Music Group Corp. Products
| Product Range | What is it ? |
|---|---|
| Recorded Music | Warner Music Group Corp. produces and distributes recorded music through various genres such as pop, rock, hip-hop, and classical. |
| Music Publishing | Warner Music Group Corp. owns and manages a vast catalog of musical compositions, including popular songs and scores. |
| Artist Services | Warner Music Group Corp. provides support services to artists, including marketing, promotion, and distribution. |
| Licensing and Sync | Warner Music Group Corp. licenses its music catalog for use in films, TV shows, commercials, and video games. |
| Digital Distribution | Warner Music Group Corp. distributes music digitally through online platforms, such as streaming services and download stores. |
Warner Music Group Corp.'s Porter Forces
Threat Of Substitutes
Warner Music Group Corp. faces moderate threat from substitutes, as consumers have alternative options for music consumption, such as streaming services and live events.
Bargaining Power Of Customers
Warner Music Group Corp. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.
Bargaining Power Of Suppliers
Warner Music Group Corp. relies on a network of suppliers, including artists, producers, and distributors, which gives them some bargaining power, but the company's size and reputation mitigate this threat.
Threat Of New Entrants
The music industry has high barriers to entry, including significant capital requirements and complex licensing agreements, making it difficult for new entrants to compete with established players like Warner Music Group Corp.
Intensity Of Rivalry
The music industry is highly competitive, with several major players, including Universal Music Group, Sony Music Entertainment, and Warner Music Group Corp., competing for market share and talent.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 93.28% |
| Debt Cost | 4.59% |
| Equity Weight | 6.72% |
| Equity Cost | 11.02% |
| WACC | 5.02% |
| Leverage | 1387.62% |
Warner Music Group Corp. : Quality Control
Warner Music Group Corp. passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MSGS | Madison Square Garden Sports Corp. operates as a professional sports company. The company owns and operates a portfolio of assets that consists of the New York Knickerbockers of the National … |
| EDR | Endeavor Group Holdings, Inc. operates as an entertainment, sports, and content company in the United States, the United Kingdom, and internationally. It operates in three segments: Owned Sports Properties, Events, … |
| LYV | Live Nation Entertainment, Inc. operates as a live entertainment company. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned … |
| NWSA | News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates in six segments: … |
| SIRI | Sirius XM Holdings Inc. provides satellite radio services on a subscription fee basis in the United States. It broadcasts music, sports, entertainment, comedy, talk, news, traffic, and weather channels, including … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Sirius XM
A-Score
1-Year Total Return ->
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Endeavor Group Holdings
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1-Year Total Return ->
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Madison Square Garden Sports
A-Score
1-Year Total Return ->
4
News Corp
A-Score
1-Year Total Return ->
5
Live Nation Entertainment
A-Score
1-Year Total Return ->
6
