Warner Music Group Corp. (WMG) is a Entertainment company in the Communication Services sector, currently trading at $29.05. It has a SharesGrow Score of 53/100, indicating a mixed investment profile with 2 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of WMG = $38.39 (+32.2% from the current price, the stock appears undervalued). Analyst consensus target is WMG = $37 (+25.6% upside).
Valuation: WMG trades at a trailing Price-to-Earnings (P/E) of 46.9 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 1.75.
Financials: revenue is $6.7B, +4.3%/yr average growth. Net income is $365M, growing at -12.3%/yr. Net profit margin is 5.4% (thin). Gross margin is 45.8% (-2.2 pp trend).
Balance sheet: total debt is $4.6B against $647M equity (Debt-to-Equity (D/E) ratio 7.12, leveraged). Current ratio is 0.66 (tight liquidity). Debt-to-assets is 46.9%. Total assets: $9.8B.
Analyst outlook: 16 / 24 analysts rate WMG as buy (67%) — moderate consensus.
SharesGrow 7-Criteria breakdown: Value 51/100 (Partial), Growth 30/100 (Fail), Past 100/100 (Pass), Health 17/100 (Fail), Moat 64/100 (Partial), Future 67/100 (Pass), Income 45/100 (Partial).
