Warner Music Group Stock Piotroski F Score

WMG Stock  USD 32.52  0.42  1.31%   
This module uses fundamental data of Warner Music to approximate its Piotroski F score. Warner Music F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Warner Music Group. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Warner Music financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Warner Music Altman Z Score, Warner Music Correlation, Warner Music Valuation, as well as analyze Warner Music Alpha and Beta and Warner Music Hype Analysis.
  
At this time, Warner Music's Debt To Equity is most likely to increase significantly in the upcoming years. The Warner Music's current Debt Equity Ratio is estimated to increase to 8.69, while Net Debt is projected to decrease to roughly 2.3 B. At this time, Warner Music's Operating Cash Flow Per Share is most likely to increase slightly in the upcoming years. The Warner Music's current Stock Based Compensation To Revenue is estimated to increase to 0.01, while Dividend Yield is projected to decrease to 0.01.
At this time, it appears that Warner Music's Piotroski F Score is Poor. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
4.0
Piotroski F Score - Poor
Current Return On Assets

Negative

Focus
Change in Return on Assets

Decreased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Improving

Focus
Asset Turnover Growth

Increase

Focus
Current Ratio Change

Decrease

Focus
Long Term Debt Over Assets Change

Lower Leverage

Focus
Change In Outstending Shares

Increase

Focus
Change in Gross Margin

No Change

Focus

Warner Music Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Warner Music is to make sure Warner is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Warner Music's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Warner Music's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Asset Turnover0.750.7019
Notably Up
Slightly volatile
Gross Profit Margin0.430.4779
Moderately Down
Slightly volatile
Total Current Liabilities2.5 B3.9 B
Way Down
Slightly volatile
Non Current Liabilities Total3.5 B4.6 B
Significantly Down
Slightly volatile
Total Assets6.3 B9.2 B
Way Down
Slightly volatile
Total Current Assets1.3 B2.6 B
Way Down
Slightly volatile

Warner Music Group F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Warner Music's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Warner Music in a much-optimized way.

About Warner Music Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Common Stock Shares Outstanding

1.48 Billion

At this time, Warner Music's Common Stock Shares Outstanding is most likely to increase significantly in the upcoming years.

Warner Music ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Warner Music's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Warner Music's managers, analysts, and investors.
Environmental
Governance
Social

About Warner Music Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Warner Music Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Warner Music using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Warner Music Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

When determining whether Warner Music Group is a strong investment it is important to analyze Warner Music's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Warner Music's future performance. For an informed investment choice regarding Warner Stock, refer to the following important reports:
Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Warner Music. If investors know Warner will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Warner Music listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.137
Earnings Share
0.83
Revenue Per Share
12.343
Quarterly Revenue Growth
(0.01)
Return On Assets
0.0742
The market value of Warner Music Group is measured differently than its book value, which is the value of Warner that is recorded on the company's balance sheet. Investors also form their own opinion of Warner Music's value that differs from its market value or its book value, called intrinsic value, which is Warner Music's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Warner Music's market value can be influenced by many factors that don't directly affect Warner Music's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Warner Music's value and its price as these two are different measures arrived at by different means. Investors typically determine if Warner Music is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Warner Music's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.