Warner Music ($NASDAQ:WMG) Group Corp. is a global music company that operates through two core divisions: recorded music and music publishing. Its recorded music division is comprised of labels such as Warner Records, Atlantic Records, and Elektra Records, while its publishing division consists of Warner/Chappell Music, the world’s third-largest music publishing company. The company’s roster of artists includes some of the world’s most renowned talents such as Ed Sheeran, Cardi B, Bruno Mars, and Coldplay.
In its recent 13F filing with the Securities & Exchange Commission, Jump Financial LLC revealed that it had increased its ownership of stock in Warner Music Group Corp. by 36.5% over the course of the first quarter. While the extent to which this will affect the company is yet unknown, this news could have a positive impact on the stock price of Warner Music Group Corp. as more investors become aware of the development.
Analysis – Warner Music Intrinsic Stock Value
At GoodWhale, we have conducted an in-depth analysis of WARNER MUSIC’s financials in order to calculate the fair value of its shares. Our proprietary Valuation Line has determined the fair value of WARNER MUSIC’s shares to be approximately $36.5. However, at the time of writing, WARNER MUSIC’s stock is currently trading at $30.6, a price which appears to be a fair deal, yet still significantly undervalued by 16.2%. This could present a great buying opportunity for investors. More…
Risk Rating Analysis
Star Chart Analysis
About the Company
Ownership (Institutional/ Fund Holdings)
Below shows the total revenue, net income and net margin for Warner Music. More…
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Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Warner Music. More…
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Cash Flow Supplement
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Warner Music. More…
Balance Sheet (Yearly/ Quarterly)
Balance Sheet Supplement
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Key Ratios Snapshot
Some of the financial key ratios for Warner Music are shown below. More…
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The company operates through three segments: Recorded Music, Music Publishing, and Live Entertainment. The Recorded Music segment consists of recorded music labels and distribution companies. The Music Publishing segment consists of music publishing companies. The Live Entertainment segment consists of live music promoters, artist management companies, and e-commerce businesses. The company’s competitors include Universal Music Group NV, Live Nation Entertainment Inc, Boat Rocker Media Inc.
– Universal Music Group NV ($OTCPK:UMGNF)
As of 2022, Universal Music Group has a market capitalization of 33.37 billion dollars and a return on equity of 23.73%. Universal Music Group is a French-owned multinational music corporation that is the largest of the “big three” record companies in the world. The company produces and distributes recorded music through a network of subsidiaries and affiliates, and also engages in music publishing and merchandising. Universal Music Group owns the world’s largest music catalogue, which includes the works of some of the most popular and influential artists of all time. The company’s artists include Drake, Taylor Swift, Kendrick Lamar, and Lady Gaga.
– Live Nation Entertainment Inc ($NYSE:LYV)
Live Nation Entertainment Inc is a global entertainment company that operates in the concert, ticketing, and artist management businesses. The company has a market cap of 18.14B as of 2022 and a Return on Equity of -55.8%. Live Nation is the largest concert promoter in the world and also owns and operates Ticketmaster, the largest ticketing company in the world. The company also owns a number of music festivals, including Lollapalooza and Bonnaroo.
– Boat Rocker Media Inc ($TSX:BRMI)
Boat Rocker Media Inc is a Canadian entertainment company with a market cap of 151.91M as of 2022. The company focuses on the production and distribution of television, film, digital content, and live entertainment. Some of its notable productions include Orphan Black, The Amazing Race Canada, and Lost in Space. The company has a ROE of 1.14%.
This suggests that the music company is in a strong financial position and investors are confident in its future prospects. Other investors have been making similar moves, with many taking advantage of the current market conditions to boost their positions in this industry-leading firm. Analysts anticipate that Warner Music Group will continue to experience strong growth in the coming months, making it an attractive option for those looking to invest in the music industry.