Warner Music Group (WMG) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Warner Music Group

NasdaqGS•Communication Services•Entertainment

$27.84-0.32(-0.01%)After hours

Market Cap

$4.06B

P/E

6.0x

P/S

0.6x

P/B

4.8x

Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. It operates through Recorded Music and Music Publishing segments. The company is involved in the discovery and development of recording artists, as well as related marketing, promotion, distribution, sale, and licensing of music created by recording artists; markets its music catalog through compilations and reissuances of previously released music and video titles, as well as previously unreleased materials. It also owns and acquires rights to approximately two million musical compositions comprising pop hits, American standards, folk songs, and motion picture and theatrical compositions, as well as administers the music and soundtracks of various third-party television and film producers and studios. In addition, the company conducts its operation primarily through a collection of record labels, such as Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Nonesuch, Parlophone, Reprise, Sire, Spinnin' Records, and Warner Classics and Warner Records Nashville. Further, it 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. Its catalog includes songwriters and composers; and various genres, including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, alternative, blues, gospel, and other Christian music. The company was founded in 1929 and is headquartered in New York, New York.

How this company scores

ExcellentMetricSide Score: 82/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (13/25).

Profitability23/25

Growth21/25

Balance Sheet & Red Flags13/25

Cash & Earnings Quality25/25

Strengths

Rising free cash flowHigh ROERising earningsCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 6.0x5y range 5.8x – 14.9x

Currently below its 20-quarter median.

P/S · 0.6x5y range 0.5x – 1.0x

Currently near its 20-quarter median.

P/B · 4.8x5y range 4.8x – 146.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Red Flag

D/E ratio is 5.5 — heavily leveraged and vulnerable to rising rates or cash flow dips.

Price & Volume

Market Cap $4.06B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $7.30B
Q. Revenue: $1.86B
TTM EBITDA: $1.42B
TTM Op. Income: $1.00B
Q. Op. Income: $305.00M
TTM Net Income: $672.00M
Q. Net Income: $204.00M
EPS: $0.39
Shares Out.: $146.30M

$7.30B in TTM revenue grew 12.9% YoY, reaching $1.86B last quarter. TTM EBITDA of $1.42B and TTM operating income of $1.00B show growth is flowing through to the bottom line. TTM net income of $672.00M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 5 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 45.8%
EBITDA Margin: 22.3%
Op. Margin: 16.4%
Net Margin: 10.9%

Op. margin of 16.4% is up 6.4% YoY — cost efficiency is improving. Net margin at 10.9% and gross margin of 45.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 64% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 6.0x
P/S Ratio: 0.6x
P/B Ratio: 4.8x

At 6.0x P/E, the stock trades below typical market levels. P/S of 0.6x and P/B of 4.8x provide additional context. P/E sits below typical market levels while revenue is growing. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $10.73B
Cash: $618.00M
Long-Term Debt: $4.71B
Book Value: $854.00M
D/E Ratio: 5.5
Debt/EBITDA: 11.3

With $10.73B in assets and $4.71B in long-term debt, D/E is 5.5and book value is $854.00M — elevated leverage, meaning significant financial risk in a downturn. Over the past year, debt/equity is down 20% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $142.00M
TTM Free Cash Flow: $836.00M
FCF Margin: 11.4%
FCF / Net Income: 1.2

TTM FCF of $836.00M on $142.00M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.