NYSE:WMG
$7.08
(3/12 6:40PM)
+6.6%
| Open | $6.64 |
Mkt Cap | $1.0 Billion |
| High | $7.1 |
52Wk High | $7.80 |
| Low | $6.62 |
52Wk Low | $2.21 |
| Volume | 513,897 |
Avg Vol 10D | 442,400 |
Ockham's Rating/Recommendation Summary
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WMG Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at WMG through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 6 years are 0.77x and 0.26x respectively.
Utilizing this range we can see that WMG’s current Price to Sales per share ratio of 0.30x is significantly below its average levels historically. In fact, with a current price of $6.24, WMG is a full 42% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for WMG.
WMG Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently WMG is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 6 years of cash earnings levels for WMG to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 13.93 and a 5.41 low over the same period.
Now that WMG’s current price is $6.24 and its Price to Cash Earnings ratio is 8.00, we are very positive on its outlook from the cash earnings perspective. In fact, WMG is now trading a full 18% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why WMG has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.
WMG Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Slow Month for News Out of WMG But Happy Hour Mentions Them
It's been at least a month since we noticed any major news coverage of WMG, so the story in Happy Hour may get the ball rolling.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WMG has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WMG. The crowd at The Motley Fool does not like WMG and believes that it will Underperform.
“… Cody: throw it out there, one of my claims to fame was buying apple at, when rumored they were going to buy WARNER MUSIC group. You know what they were doing? …”
It's Been a Month or More Since Closing Bell Discussed Warner Music Group Corporation
It's been at least a month since we noticed any major news coverage of WMG, so the story in Closing Bell may get the ball rolling.
A significant sell off of $0.79 is underway right now, so investors in WMG should pay close attention to the news. We noticed recently that in comparison to all other stocks we analyze in the news; WMG has received less coverage from the financial media in business television and blogs. Warner Music Group Corporation received our Fairly Valued rating in our latest report because the price at the time of the report of $6.80 did not seem out of line with the fundamentals. The price has fallen since then and all other things being equal that makes WMG more attractive. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… A surprise quarterly loss for WARNER MUSIC as the week economy and slowing demand for cds resulted in a three cent a share loss. Analysts were looking for five cents a share. …”
First WMG News on Countdown to the Closing Bell in More Than a Month
After a month of relative quiet from WMG, they have appeared back in the news.
The crowd at The Motley Fool does not like WMG and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WMG has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WMG. But we have noted the recent price declines that make this stock more attractive to value minded investors. Please be aware that WMG is trading off $1.27 today, and is clearly being affected by the latest news.
“… And warn WARNER MUSIC posting a loss in the third quarter when the street expected a that stock is hit 12% to the . …”
WMG's Back in the News After More than a Month on Squawk On The Street
It's been at least a month since we noticed any major news coverage of WMG, so the story in Squawk On The Street may get the ball rolling.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WMG has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like WMG and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WMG. But we have noted the recent price declines that make this stock more attractive to value minded investors. Please be aware that WMG is trading off $0.70 today, and is clearly being affected by the latest news.
“… Be delivered between 2011 and 2013, the stock up just slightly a quarterly loss for WARNER MUSIC as a slower are demand for cds. …”
Warner Music Group Corporation (WMG) Discussed on CNBC's Power Lunch
Warner Music Group Corporation is in the news. Find out how this impacts WMG trading on Ockham Research.
Instead this partnership could drive even more shoppers to itunes and now other music sellers as well with google taking a piece of the action. In addition to other sites, WARNER MUSIC, emi, sony and vivendi's universal music will all signed on to the service. It will go live shortly. >> instead of buying only from itunes I can buy from other >> yeah, through google. Go to google first, look for the song you want, you'll get a variety of places from which to if you want to be linked to
“… vice. It will go live shortly. >> instead of buying only from itunes I can buy from other >> yeah, through google. Go to google first, look for the song you want, you'll get a variety of places from which to if you want to be linked to …”
Warner Music Group Corporation (WMG) Discussed on CNBC's The Call
Warner Music Group Corporation is in the news. Find out how this impacts WMG trading on Ockham Research.
Stealy has been there for many, many years, but it's an interesting time to bring this we want to head over to julia boorstin on the west coast with breaking news on youtube and WARNER MUSIC. >> they've announced a revenue sharing deal. This comes after a nine-month standoff. Warner pulled all of its videos off the site, saying they weren't being paid enough. This new deal covers the full catalog including youtube official videos and content. Unlike some licensing deals that require a fee, this deal is a pure revenue-sharing deal and WARNER MUSIC will be able to sell their own ad inventory. Now, they have deals with all four major music labels and they're also working on a presume premium channel on the site. >> thanks very much. >>> home prices in july rose for the third straight month, jumping over 1.5%. Consumer confidence in september fell. So, what's this say about economic recovery? Lelet'ss b bringng in two top economists. We have diane and steve. Steve, I hope I got that right. >> that was good. >> we also have diana olick. Diana, looked like prettyoo diana, looked like pretty good nenews o out o of schiller. >> prices are moderating. We have seen price drops as far as 19, 20%, now, 13%. The thing to watch for is when you talk about that month to
“… nine-month standoff. Warner pulled all of its videos off the site, saying they weren't being paid enough. This new deal covers the full catalog including youtube official videos and content. Unlike some licensing deals that require a fee, this deal is a pure revenue-sharing deal and WARNER MUSIC will be able to sell their own ad inventory. Now, they have deals with all four major music labels and they're also working on a presume premium channel on the site. >> thanks very much. >>> home prices in july rose for the third straight month, jumping over 1.5%. Consumer confidence in september fell. So, what's this say about economic recovery? Lelet'ss b bringng in two top economists. We have diane and steve. Steve, I hope I got that right. >> that was good. >> we also have diana olick. Diana, looked like prettyoo diana, looked like pretty good nenews o out o of schiller. >> prices are moderating. We have seen price drops as far as 19, 20%, now, 13%. The thing to watch for is when you talk about that month to …”
Warner Music Group Corporation (WMG) Discussed on Fox Business's Money For Breakfast
Warner Music Group Corporation is in the news. Find out how this impacts WMG trading on Ockham Research.
Stay current with the latest bugs, the software giant says it is not out to take on antivirus appeal to people who don't already run that software. Interesting. You will be able to listen to songs and music videos from WARNER MUSIC video from youtube again. They agreed to return to the site after a monthlong boycott over what it called on fair terms. It would involve sharing advertising revenue with the provided by warner. In december WARNER MUSIC pulled all the music from youtube sang the payments it received was not fairly compensating the label and songwriters. Connell: the latest travel website to cut the fees. Announcing today it will change fees for most booking. Coming as competitors like expedia and priceline.Com said they would no longer tax on the fees for most of the reservations earlier this year. However consumers still have to pay cancellation fees that the hotel itself charges. All major online travel these agencies are eliminating the booking fees. Here is the stock price, period ashley: starbucks rolling out the instant coffee today. After a test run in seattle, chicago, and right here in london.
“… n. They agreed to return to the site after a monthlong boycott over what it called on fair terms. It would involve sharing advertising revenue with the provided by warner. In december WARNER MUSIC pulled all the music from youtube sang the payments it received was not fairly compensating the label and songwriters. Connell: the latest travel website to cut the fees. Announcing today it will change fees for most booking. Coming as competitors like expedia and priceline.Com said they would no longer tax on the fees for most of the reservations earlier this year. However consumers still have to pay cancellation fees that the hotel itself charges. All major online travel these agencies are eliminating the booking fees. Here is the stock price, period ashley: starbucks rolling out the instant coffee today. After a test run in seattle, chicago, and right here in london. …”
Warner Music Group Corporation (WMG) Discussed on Fox Business's Countdown to the Closing Bell
Warner Music Group Corporation is in the news. Find out how this impacts WMG trading on Ockham Research.
Jaffreys, shares up 5% upgrade ing to a buy. Amazon up. The e-commerce sector is up thank to that. WARNER MUSIC group singing a lot of upgrades today. A tie up between this company and e.M.I., a likely possibility. Citi detailed a number of factors pointing to a merger between the two, but the merger could be limited to their businesses. Drive, digital river with almost double percentages there.
“… ng to a merger between the two, but the merger could be limited to their businesses. Drive, digital river with almost double percentages there. …”
Warner Music Group Corporation (WMG) Discussed on Fox Business's The Opening Bell on Fox Business
Warner Music Group Corporation is in the news. Find out how this impacts WMG trading on Ockham Research.
The high end at 28 million and previously saw a high end of 25 million. Rogers corporates, another stock to take a look at. Making good news here, they manufacture specialty materials and see strong performance of printed materials, that's up 12%, that's huge. WARNER MUSIC, WARNER MUSIC got an upgrade today. Upgraded at citigroup to a buy, that stock up 8% out of the gate. Bioscience, a small company, signed at deal, three drugs at phase two, no drugs phase three, but this stock used to be $69 a share, up 7% this morning and omniture taken over by adobe. The analysts like this. Friedman billings ramsey says it's a good fit and raised target on adobe, and worth
“… huge. WARNER MUSIC, WARNER MUSIC got an upgrade today. Upgraded at citigroup to a buy, that stock up 8% out of the gate. Bioscience, a small company, signed at deal, three drugs at phase two, no drugs phase three, but this stock used to be $69 a share, up 7% this morning and omniture taken over by adobe. The analysts like this. Friedman billings ramsey says it's a good fit and raised target on adobe, and worth …”
Warner Music Group Corporation (WMG) Discussed on CNBC's Street Signs
Warner Music Group Corporation is in the news. Find out how this impacts WMG trading on Ockham Research.
Everything from photos, videos, lyrics, and even the ability to play the albums on consumers -- on different computers without using itunes. Apple's reportedly working with emi, sony, WARNER MUSIC, and universal music group, who are desperate to boost revenues as sales of single digital tracks have failed to competence yacht for the decline in the cd "billboard" executive editor rob
“… enues as sales of single digital tracks have failed to competence yacht for the decline in the cd "billboard" executive editor rob …”