Warner Music Group Corp. cash flow to debt ratio of 14.71% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Warner Music Group Corp.'s free cash flow has decreased 15.52% from $638.00M last year to $539.00M, signaling decreasing performance

Warner Music Group Corp.'s debt to equity ratio is 5.76, which means that the company's assets are unhealthy financed, signaling financial risk.

Warner Music Group Corp.'s debt has decreased relative to shareholder equity from 8.28 last year to 5.76 today, signaling strengthened financials

Warner Music Group Corp. has a net debt to EBITDA ratio of 3.66x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Warner Music Group Corp.'s interest coverage ratio of 5.97 indicates that earnings with good margin can cover interest payments on company debt

Warner Music Group Corp.'s profit margin has increased (35.91%) in the last year from 6.77% to 9.20%, signaling increasing performance

Warner Music Group Corp.'s short-term liabilities of $4.20B exceed its short-term assets of $2.77B, signaling financial risk

Warner Music Group Corp.'s return on assets of 6.26% is higher than the 5.00% threshold, indicating efficient asset utilization

Warner Music Group Corp.'s return on equity of 90.84%, is higher than 15.00%, indicating good performance

Warner Music Group Corp.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Warner Music Group Corp. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Warner Music Group Corp. has positive free cash flow, indicating the company generates cash after capital expenditures

Warner Music Group Corp. has a free cash flow yield of 3.91%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Warner Music Group Corp.'s yearly earnings has decreased 16.09% since last year from $435.00M to $365.00M, signaling decreasing performance

Warner Music Group Corp.'s yearly revenue has increased 4.37% since last year from $6.43B to $6.71B, signaling increasing performance

ROIC 12.58% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Warner Music Group Corp.'s 3-year revenue CAGR of 4.25% is positive, indicating growing revenue over the past 3 years

Warner Music Group Corp. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Warner Music Group Corp. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Warner Music Group Corp. is overvalued relative to its fair value price of 10.36 based on Discounted Cash Flow model

Warner Music Group Corp. has an earnings yield of 4.88%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Warner Music Group Corp. is overvalued relative to its fair value price of 7.13 based on EBITDA multiple model

Warner Music Group Corp. has an EV/EBITDA ratio of 16.03x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Warner Music Group Corp. is undervalued relative to its fair value price of 29.97 based on Earnings Fair Value model

Warner Music Group Corp. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Warner Music Group Corp. has a price-to-book ratio of 12.69x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Warner Music Group Corp. has a price-to-sales ratio of 1.89x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue