Warner Music Group Corp. Class A Common Stock (WMG)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses whose economics are understandable and whose price leaves room for error. Warner Music is understandable: it discovers artists, owns and licenses recordings and publishing rights, and earns from streaming, physical, and sync uses. The catalog and publishing side can have a durable advantage because copyrights are scarce and recurring, but this is not a wide-moat toll bridge; competitors bid for talent and streaming platforms have power. The recent operating trend is mixed. In fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $1.9B and net income $204.0M, compared with revenue of $1.7B and a net loss of $16.0M in fiscal Q3 2025, the quarter ended 2025-06-30. For fiscal 2025, ended 2025-09-30, revenue was $6.7B and net income $365.0M; fiscal 2024, ended 2024-09-30, revenue was $6.4B and net income $435.0M. So sales edge up, but annual profit fell. FairStock classifies it as a SLOW GROWER, with profit growing 4.7% a year and revenue 6.1% over four years. Financial health gives me pause. At the 2026-10-13 close of $28.91, the FairStock P/E is 23.13, P/B is 17.74, and FCF yield is only 1.9%. Debt/equity is 4.53, Altman Z-Score is 0.93, and the Graham Number is $6.77, leaving a -327% margin of safety. The FairStock Score is 39/100. ROE of 70.07% looks flattered by leverage, while ROCE is 7.65%. The dividend yield is 2.86%. Growth is modest, leverage is high, and the price does not offer a Graham-style bargain.

In plain English: Warner Music runs recorded music and music publishing, helping artists create and sell songs and licensing their catalogs. The latest quarter looked much stronger than a year earlier, with a profit instead of a loss, but yearly profits have slipped and the company carries a lot of debt. At $28.91, the shares look expensive compared with the company’s accounting value and cash generation.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer