Is the business good?
How good a business is WMG?
Warner Music Group Corp. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.0 points above what the capital costs: growth creates value
- Operating margin
- 14%
Operating margin · Entertainment median 12% · 12 months to Q3 2026
- Cash conversion
- 1.24×
Cash conversion · 2.04× a year ago · every dollar of reported profit arrived as cash, and more
- Gross margin
- 46%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | −5.1% |
| FY2021 | 11% |
| FY2022 | 12% |
| FY2023 | 13% |
| FY2024 | 13% |
| FY2025 | 10% |
Details›
- Gross margin12 months to Q3 2026
- 46%
- Operating margin12 months to Q3 2026
- 14%
- Net margin12 months to Q3 2026
- 9.2%
- Free cash flow margin
- 11%
- Revenue, trailing twelve months
- $7.30B
- Free cash flow, trailing twelve months
- $836M
- Net income, trailing twelve months
- $672M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.