Now trading at a price of $33.44, Warner Music has moved -1.6% so far today.
Over the last year, Warner Music logged a 1.7% change, with its stock price reaching a high of $38.76 and a low of $23.62. Over the same period, the stock underperformed the S&P 500 index by -19.2%. As of April 2023, the company's 50-day average price was $32.67. Warner Music Group Corp. operates as a music entertainment company in the United States, the United Kingdom, Germany, and internationally. Based in New York, NY, the large-cap Consumer Discretionary company has 5,900 full time employees. Warner Music has offered a 1.9% dividend yield over the last 12 months.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $4,005 | $4,475 | $4,463 | $5,301 | $5,919 | $6,037 |
| Revenue Growth | n/a | 11.74% | -0.27% | 18.78% | 11.66% | 1.99% |
| Operating Margins | 11% | 8% | -5% | 11% | 13% | 13% |
| Net Margins | 8% | 6% | 0% | 6% | 9% | 7% |
| Net Income (MM) | $312 | $258 | $5 | $307 | $555 | $439 |
| Net Interest Expense (MM) | $394 | $60 | -$4 | -$9 | $151 | $1 |
| Depreciation & Amort. (MM) | $261 | $269 | $261 | $306 | $339 | $332 |
| Capital Expenditures (MM) | $74 | $104 | $57 | $93 | $135 | $127 |
| Current Ratio | 0.61 | 0.59 | 0.63 | 0.6 | 0.7 | 0.68 |
| Total Debt (MM) | $4,332 | $4,720 | $5,186 | $5,893 | $6,105 | $6,242 |
| Net Debt / EBITDA | 5.38 | 6.81 | 144.38 | 5.95 | 4.99 | 4.99 |
Warner Music's P/B and P/E Ratios Are Higher Than Average:
Warner Music has a trailing twelve month P/E ratio of 39.8, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $1.47, the company has a forward P/E ratio of 22.2. Furthermore, Warner Music is likely overvalued compared to the book value of its equity, since its P/B ratio of 56.2 is higher than the sector average of 4.24.
Warner Music Has an Average Rating of Buy:
The 17 analysts following Warner Music have set target prices ranging from $15.4 to $40.0 per share, for an average of $35.2 with a buy rating. As of April 2023, the company is trading -7.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Warner Music has an average amount of shares sold short because 3.7% of the company's shares are sold short. Institutions own 91.7% of the company's shares, and the insider ownership rate stands at 11.58%, suggesting a large amount of insider shareholders. The largest shareholder is FMR, LLC, whose 11% stake in the company is worth $486,024,163.
