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Upturn AI SWOT - About
WMG 
Warner Music Group (WMG)
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Upturn Advisory Summary
03/27/2025: WMG (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 17.04% | Avg. Invested days 38 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 17.09B USD | Price to earnings Ratio 33.6 | 1Y Target Price 36.11 |
Price to earnings Ratio 33.6 | 1Y Target Price 36.11 | ||
Volume (30-day avg) 2208465 | Beta 1.33 | 52 Weeks Range 26.61 - 36.45 | Updated Date 03/27/2025 |
52 Weeks Range 26.61 - 36.45 | Updated Date 03/27/2025 | ||
Dividends yield (FY) 2.19% | Basic EPS (TTM) 0.96 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.07% | Operating Margin (TTM) 14.47% |
Management Effectiveness
Return on Assets (TTM) 6.53% | Return on Equity (TTM) 80.12% |
Valuation
Trailing PE 33.6 | Forward PE 21.64 | Enterprise Value 20515860328 | Price to Sales(TTM) 2.69 |
Enterprise Value 20515860328 | Price to Sales(TTM) 2.69 | ||
Enterprise Value to Revenue 3.23 | Enterprise Value to EBITDA 17.73 | Shares Outstanding 144980992 | Shares Floating 143718517 |
Shares Outstanding 144980992 | Shares Floating 143718517 | ||
Percent Insiders 1.82 | Percent Institutions 105.58 |
Analyst Ratings
Rating 3.84 | Target Price 35.63 | Buy 5 | Strong Buy 7 |
Buy 5 | Strong Buy 7 | ||
Hold 5 | Sell 1 | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Warner Music Group
Company Overview
History and Background
Warner Music Group (WMG) was founded in 1958 as Warner Bros. Records. It has grown through acquisitions and organic expansion, becoming one of the 'big three' recording companies. It separated from Time Warner in 2004, and went public again in 2020.
Core Business Areas
- Recorded Music: Discovers and develops recording artists and distributes music through physical and digital channels. Generates revenue through streaming, physical sales, downloads, licensing, and other sources.
- Music Publishing: Owns and administers copyrights to musical compositions, generating revenue through performance, mechanical, synchronization, and other licensing fees. Represents a vast catalog of songs.
Leadership and Structure
Robert Kyncl serves as CEO. The company operates with a global structure, divided into regional divisions and labels, with a corporate headquarters overseeing strategy and operations.
Top Products and Market Share
Key Offerings
- Market Share (%): Warner market share is embedded in the total of 25%
- Recorded Music Streaming: Distribution of music through streaming platforms like Spotify and Apple Music. Market share is tied to overall WMG market share. Competitors: Universal Music Group, Sony Music Entertainment, independent labels.
- Market Share (%): Warner market share is embedded in the total of 25%
- Music Licensing: Licensing of music for films, TV shows, commercials, and other media. Revenue varies year to year. Competitors: Universal Music Group, Sony Music Entertainment, BMG Rights Management.
Market Dynamics
Industry Overview
The music industry is currently dominated by streaming, with a growing emphasis on digital channels. Demand is increasing for on-demand access to music globally. Major players are adapting to changes in consumption behavior.
Positioning
WMG is positioned as one of the three largest music companies globally, competing directly with Universal Music Group and Sony Music Entertainment. It has a strong artist roster and publishing catalog.
Total Addressable Market (TAM)
The global recorded music market is estimated to be over $26 billion, with projections of continued growth. WMG is positioned to capitalize on the growing market through its artist relationships and publishing assets.
Upturn SWOT Analysis
Strengths
- Strong artist roster and publishing catalog
- Established relationships with streaming platforms
- Global distribution network
- Experienced management team
Weaknesses
- Reliance on a few key artists
- Vulnerability to changes in consumer preferences
- Competition from other major labels and independent artists
- Exposure to copyright infringement risks
Opportunities
- Expansion into emerging markets
- Growth in streaming revenue
- Development of new revenue streams (e.g., NFTs, Metaverse)
- Acquisition of smaller labels and publishing catalogs
Threats
- Piracy and copyright infringement
- Changes in streaming platform economics
- Increased competition from independent artists
- Economic downturn impacting consumer spending
Competitors and Market Share
Key Competitors
- UMG
- SONY
Competitive Landscape
WMG faces strong competition from Universal Music Group and Sony Music Entertainment. Its success depends on its ability to discover and promote new artists, manage its catalog effectively, and adapt to changes in the music industry.
Major Acquisitions
Spinnin' Records
- Year: 2017
- Acquisition Price (USD millions): 100
- Strategic Rationale: Expansion into the electronic dance music (EDM) market.
Growth Trajectory and Initiatives
Historical Growth: WMG has shown growth in recent years, primarily driven by the increasing popularity of streaming services and digital music consumption.
Future Projections: Analysts project continued growth for WMG, driven by streaming and expansion into new markets.
Recent Initiatives: WMG has focused on expanding its global presence, investing in emerging technologies, and acquiring music publishing catalogs.
Summary
Warner Music Group is a major player in the global music industry, benefiting from the growth of streaming and its strong artist roster. However, the company faces competition from other major labels and independent artists, and it needs to adapt to changing consumer preferences. Maintaining key artist relations is crucial for sustained success, as is adapting to new technologies and music distribution models. Overall, Warner Music Group is well-positioned for future growth with a few risks to keep an eye on.
Similar Companies
- UMG
- SONY
- SPOT
- AAPL
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Market Analysis
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Data is based on available information and may be subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Warner Music Group
Exchange NASDAQ | Headquaters New York, NY, United States | ||
IPO Launch date 2020-06-03 | President, CEO & Director Mr. Robert Kyncl | ||
Sector Communication Services | Industry Entertainment | Full time employees 5800 | Website https://www.wmg.com |
Full time employees 5800 | Website https://www.wmg.com | ||
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 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 sylum, Big Beat, Canvasback, East West, Erato, FFRR, Nonesuch, Parlophone, Reprise, Sire, Spinnin' Records, TenThousand Projects, 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 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.
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