Is WMG a good stock to buy right now?

Based on our 6-factor quantitative model, Warner Music Group Corp. (WMG) receives a "Reduce" rating with a composite score of 45.6/100. It is ranked #2,390 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 45/100, Momentum 30/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for WMG?

Warner Music Group Corp. (WMG) has a "Reduce" rating and 2-star score. The composite score of 45.6 ranks it #2,390 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is WMG in?

Warner Music Group Corp. operates in the Communication Services sector (Entertainment industry) with a market cap of $13.46 billion. It is classified as a large-cap stock.

Does WMG pay a dividend?

Yes, WMG pays a dividend with a current yield of 2.64%. For every $1,000 invested, you would receive approximately $26.40 in annual dividend income.

What is WMG's P/E ratio?

WMG has a trailing P/E ratio of 41.99x. The Communication Services sector average is 26.1x. This above-average P/E reflects growth expectations or premium valuation.

How profitable is WMG?

WMG's quality factor score is 50/100. Gross margin: 46.4%. ROE: 40.8% vs sector average 1.0%. Margins are moderate to low, reflecting competitive market dynamics.

How is WMG valued compared to peers?

WMG's value factor score is 45/100 (higher = cheaper). Key multiples: P/E 42.0x, EV/EBITDA 22.2x. Valuation is roughly in line with peers.

What is WMG's debt level?

WMG's debt-to-equity ratio is 530%. Sector average: 82%. Elevated leverage increases credit risk.

WMG has a beta of 0.80, meaning it tracks the market. Stability score: 72/100.

Does WMG have high short interest?

WMG's short interest factor score is 66/100 (higher = less short selling). Moderate short interest.

WMG Stock Analysis: Reduce (Score 45.6/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
WMG	+1.35%	+9.15%	+6.30%	-7.08%	-1.42%	-	-	-
Industry Proxy XLC	-0.28%	+2.01%	-2.92%	-3.20%	+25.91%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	+1.42%	+5.55%	+5.97%	-6.71%	-30.94%	-	-	-
Alpha vs Sector	+1.63%	+7.14%	+9.23%	-3.87%	-27.33%	-	-	-

Metric	WMG	Benchmark
P/E Ratio	42.0x	+61%
EV/EBITDA	22.2x	+346%
Price / Book	17.1x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
TIGO MILLICOM INTERNATIONAL CELLULAR SA	62	41	67	81	-	143.3%	42.5%	4.6%	-	884.0x	$12.9B	VS
VZ VERIZON COMMUNICATIONS INC	54	50	77	54	10.8x	17.6%	60.5%	13.7%	3.1%	282.0x	$208.3B	VS
DLX DELUXE CORP	54	50	76	69	16.4x	11.6%	53.3%	3.7%	0.4%	321.0x	$1.3B	VS
NYT NEW YORK TIMES CO	53	50	52	68	49.3x	13.6%	50.2%	10.4%	12.1%	47.0x	$13.8B	VS
BCE BCE INC	52	37	71	51	186.8x	8.8%	43.4%	1.5%	-9.3%	237.0x	$23.7B	VS
T AT&T INC.	52	50	68	46	9.9x	15.3%	62.0%	15.8%	3.1%	107.0x	$197.7B	VS
MSGE Madison Square Garden Entertainment Corp.	51	50	59	67	48.3x	166.0%	40.3%	-1.0%	101.4%	1,540.0x	$2.7B	VS
ADEA Adeia Inc.	50	50	61	67	51.2x	11.8%	100.0%	16.4%	-0.0%	87.0x	$2.8B	VS
CDRO Codere Online Luxembourg, S.A.	50	46	53	61	-	65.0%	90.7%	1.9%	12.7%	0.0x	$389M	VS
TGNA TEGNA INC	50	50	67	46	10.4x	9.8%	38.3%	10.6%	-8.4%	80.0x	$3.2B	VS
WMG Warner Music Group Corp.	46	50	45	30	42.0x	40.8%	46.4%	5.0%	23.2%	530.0x	$13.5B

Key Ratio	TTM	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017
Gross Margin %	0.5%	0.5%	0.5%	0.5%	0.5%	0.5%	0.5%	0.5%	0.5%	0.5%	-
Operating Margin %	0.1%	0.2%	0.1%	0.1%	0.1%	0.1%	0.1%	-0.1%	0.1%	0.1%	-
EBITDA Margin %	0.1%	0.2%	0.1%	0.2%	0.1%	0.1%	0.1%	-0.0%	0.2%	-	-
Net Margin %	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	-0.1%	0.1%	0.1%	-
FCF Margin %	0.2%	-	-	9.9%	-	-	-	8.5%	6.6%	-	-
ROE %	0.4%	0.2%	0.5%	0.9%	1.0%	3.3%	6.7%	754.0%	-88.6%	-	-
ROA %	0.0%	0.0%	0.0%	0.1%	0.1%	0.1%	0.0%	-0.1%	0.0%	-	-
ROIC %	0.1%	4.4%	10.7%	16.9%	14.2%	14.5%	14.2%	-7.3%	13.6%	0.0%	0.0%

Key Ratio

TTM

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

Gross Margin %

0.5%

Operating Margin %

0.1%

0.2%

0.1%

-0.1%

0.1%

EBITDA Margin %

0.1%

0.2%

0.1%

0.2%

0.1%

-0.0%

0.2%

Net Margin %

0.1%

-0.1%

0.1%

FCF Margin %

0.2%

9.9%

8.5%

6.6%

ROE %

0.4%

0.2%

0.5%

0.9%

1.0%

3.3%

6.7%

754.0%

-88.6%

ROA %

0.0%

0.1%

0.0%

-0.1%

0.0%

ROIC %

0.1%

4.4%

10.7%

16.9%

14.2%

14.5%

14.2%

-7.3%

13.6%

0.0%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
	$6.6B	$6.7B	$6.4B	$6.0B	$5.9B	$5.3B	$4.5B	$4.5B	—	—	—	—
	—	$3.6B	—	$3.2B	$3.1B	$2.7B	—	—	—	—	—	—
	$3.0B	$3.1B	$3.1B	$2.9B	$2.8B	$2.6B	$2.1B	$2.1B	—	—	—	—
Gross Margin	46.4%	45.9%	47.8%	47.4%	48.0%	48.3%	47.7%	46.4%	45.8%	---	---	---
	—	$1.9B	—	$1.8B	$1.9B	$1.7B	—	—	—	—	—	—
Depreciation	—	—	$333M	—	—	—	$266M	$275M	$267M	$259M	$304M	$320M
Total Operating Expenses	—	$2.4B	—	$2.1B	$2.1B	$1.9B	—	—	—	—	—	—
	$832M	$694M	$823M	$790M	$714M	$609M	-$229M	$356M	—	—	—	—
EBIT	$575M	$694M	$823M	$790M	$714M	$609M	-$229M	$356M	$611M	$0	$0	$0
EBITDA	$832M	$694M	$1.1B	$790M	$714M	$609M	-$20M	$691M	$878M	$259M	$304M	$320M
Operating Margin	12.6%	10.3%	12.8%	13.1%	12.1%	11.5%	-5.1%	8.0%	5.4%	---	---	---
EBITDA Margin	12.7%	10.3%	17.5%	13.1%	12.1%	11.5%	-0.4%	15.4%	---	---	---	---
	—	—	$0	—	—	—	$34M	$7M	—	—	—	—
	—	$490M	—	$609M	$740M	$456M	—	—	—	—	—	—
Income Tax Expense	—	$120M	$123M	$170M	$185M	$149M	$23M	$9M	—	—	—	—
	$336M	$370M	$478M	$439M	$555M	$307M	-$475M	$256M	—	—	—	—
Net Margin	5.0%	5.5%	7.4%	7.3%	9.4%	5.8%	-10.5%	5.7%	7.7%	---	---	---
	-	-	$1.66	-	-	-	-	-	-	-	-	-
Diluted EPS	-	-	$1.66	-	-	-	-	-	-	-	-	-

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$6.6B

$6.7B

$6.4B

$6.0B

$5.9B

$5.3B

$4.5B

—

$3.6B

—

$3.2B

$3.1B

$2.7B

—

$3.0B

$3.1B

$2.9B

$2.8B

$2.6B

$2.1B

—

Gross Margin

46.4%

45.9%

47.8%

47.4%

48.0%

48.3%

47.7%

46.4%

45.8%

---

—

$1.9B

—

$1.8B

$1.9B

$1.7B

—

Depreciation

—

$333M

—

$266M

$275M

$267M

$259M

$304M

$320M

Total Operating Expenses

—

$2.4B

—

$2.1B

$1.9B

—

$832M

$694M

$823M

$790M

$714M

$609M

-$229M

$356M

—

EBIT

$575M

$694M

$823M

$790M

$714M

$609M

-$229M

$356M

$611M

EBITDA

$832M

$694M

$1.1B

$790M

$714M

$609M

-$20M

$691M

$878M

$259M

$304M

$320M

Operating Margin

12.6%

10.3%

12.8%

13.1%

12.1%

11.5%

-5.1%

8.0%

5.4%

---

EBITDA Margin

12.7%

10.3%

17.5%

13.1%

12.1%

11.5%

-0.4%

15.4%

---

—

$34M

$7M

—

$490M

—

$609M

$740M

$456M

—

Income Tax Expense

—

$120M

$123M

$170M

$185M

$149M

$23M

$9M

—

$336M

$370M

$478M

$439M

$555M

$307M

-$475M

$256M

—

Net Margin

5.0%

5.5%

7.4%

7.3%

9.4%

5.8%

-10.5%

5.7%

7.7%

---

$1.66

Diluted EPS

$1.66

Warner Music Group Corp. (WMG) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does Warner Music Group Corp. Do?

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. Warner Music Group Corp. (WMG) is classified as a large-cap stock in the Communication Services sector, specifically within the Entertainment industry. The company is led by CEO Stephen F. Cooper and employs approximately 6,200 people. With a market capitalization of $13.5B, WMG is one of the prominent companies in the Communication Services sector.

Warner Music Group Corp. (WMG) Stock Rating — Reduce (April 2026)

As of April 2026, Warner Music Group Corp. receives a Reduce rating with a composite score of 45.6/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.WMG ranks #2,390 out of 4,446 stocks in our coverage universe. Within the Communication Services sector, Warner Music Group Corp. ranks #72 of 134 stocks, placing it in the lower half of its Communication Services peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

WMG Stock Price and 52-Week Range

Warner Music Group Corp. (WMG) currently trades at $28.24. The stock gained $0.12 (0.4%) in the most recent trading session. The 52-week high for WMG is $34.63, which means the stock is currently trading -18.5% from its annual peak. The 52-week low is $24.59, putting the stock 14.8% above its annual trough. Recent trading volume was 1.6M shares, reflecting moderate market activity.

Is WMG Overvalued or Undervalued? — Valuation Analysis

Warner Music Group Corp. (WMG) carries a value factor score of 45/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 41.99x, compared to the Communication Services sector average of 26.08x — a premium of 61%. The price-to-book ratio stands at 17.12x, versus the sector average of 1.87x. The price-to-sales ratio is 2.15x, compared to 0.55x for the average Communication Services stock. On an enterprise value basis, WMG trades at 22.21x EV/EBITDA, versus 4.98x for the sector. The EV/EBIT multiple is 32.13x.

Overall, WMG's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

Warner Music Group Corp. Profitability — ROE, Margins, and Quality Score

Warner Music Group Corp. (WMG) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 40.8%, compared to the Communication Services sector average of 1.0%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 3.4% versus the sector average of -0.0%.

On a margin basis, Warner Music Group Corp. reports gross margins of 46.4%, compared to 56.4% for the sector. The operating margin is 12.6% (sector: 0.4%). Net profit margin stands at 5.0%, versus -0.9% for the average Communication Services stock. Revenue growth is running at 23.2% on a trailing basis, compared to 3.0% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

WMG Debt, Balance Sheet, and Financial Health

Warner Music Group Corp. has a debt-to-equity ratio of 530.0%, compared to the Communication Services sector average of 82.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 0.70x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $4.37B.

WMG has a beta of 0.80, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Warner Music Group Corp. is 72/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

Warner Music Group Corp. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Warner Music Group Corp. reported revenue of $6.57B. Net income for the quarter was $336M. Gross margin was 46.4%. Operating income came in at $832M.

In Q1 2026, Warner Music Group Corp. reported revenue of $1.84B. Net income for the quarter was $175M. Gross margin was 46.4%. Operating income came in at $288M.

In FY 2025, Warner Music Group Corp. reported revenue of $6.71B. Net income for the quarter was $370M. Gross margin was 45.9%. Revenue grew 4.4% year-over-year compared to FY 2024. Operating income came in at $694M.

In Q3 2025, Warner Music Group Corp. reported revenue of $1.69B. Net income for the quarter was $-16M. Gross margin was 45.9%. Revenue grew 8.7% year-over-year compared to Q3 2024. Operating income came in at $169M.

Over the past 8 quarters, Warner Music Group Corp. has demonstrated a growth trajectory, with revenue expanding from $1.49B to $6.57B. Investors analyzing WMG stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

WMG Dividend Yield and Income Analysis

Warner Music Group Corp. (WMG) currently pays a dividend yield of 2.6%. At this yield, a $10,000 investment in WMG stock would generate approximately $$264.00 in annual dividend income. The net margin of 5.0% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.

WMG Momentum and Technical Analysis Profile

Warner Music Group Corp. (WMG) has a momentum factor score of 30/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 66/100 reflects moderate short selling activity.

WMG vs Competitors — Communication Services Sector Ranking and Peer Comparison

Within the Communication Services sector, Warner Music Group Corp. (WMG) ranks #72 out of 134 stocks based on the Blank Capital composite score. This places WMG in the lower half of all Communication Services stocks in our coverage universe. Key competitors and sector peers include MILLICOM INTERNATIONAL CELLULAR SA (TIGO) with a score of 61.6/100, TEGNA INC (TGNA) with a score of 49.6/100, VERIZON COMMUNICATIONS INC (VZ) with a score of 54.2/100, DELUXE CORP (DLX) with a score of 53.8/100, and NEW YORK TIMES CO (NYT) with a score of 53.2/100.

Comparing WMG against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full WMG vs S&P 500 (SPY) comparison to assess how Warner Music Group Corp. stacks up against the broader market across all factor dimensions.

WMG Next Earnings Date

No upcoming earnings date has been announced for Warner Music Group Corp. (WMG) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy WMG? — Investment Thesis Summary

The quantitative profile for Warner Music Group Corp. suggests caution. Momentum is weak at 30/100, a headwind for near-term performance. Low volatility (stability score 72/100) reduces downside risk.

In summary, Warner Music Group Corp. (WMG) earns a Reduce rating with a composite score of 45.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on WMG stock.

Related Resources for WMG Investors

Explore more research and tools: WMG vs S&P 500 comparison, top Communication Services stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare WMG head-to-head with peers: WMG vs TIGO, WMG vs TGNA, WMG vs VZ.

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Warner Music Group Corp. (WMG) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does Warner Music Group Corp. Do?

Warner Music Group Corp. (WMG) Stock Rating — Reduce (April 2026)

WMG Stock Price and 52-Week Range

Is WMG Overvalued or Undervalued? — Valuation Analysis

Warner Music Group Corp. Profitability — ROE, Margins, and Quality Score

WMG Debt, Balance Sheet, and Financial Health

Warner Music Group Corp. Revenue and Earnings History — Quarterly Trend

WMG Dividend Yield and Income Analysis

WMG Momentum and Technical Analysis Profile

WMG vs Competitors — Communication Services Sector Ranking and Peer Comparison

WMG Next Earnings Date

Should You Buy WMG? — Investment Thesis Summary

Related Resources for WMG Investors

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