Warner Music GroupWMG -2.21%79 Net Margin % is 10.57% as of Mar. 2026, which is 84% above its 10-year median of 5.73. GuruFocus rates WMG with a GF Score™ of 79/100 and a GF Value™ of $35.06 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,024 Media - Diversified companies, Warner Music Group ranks better than 70.8% on this metric.
The historical rank and industry rank for Warner Music Group's Net Margin % or its related term are showing as below:
WMG'
s Net Margin % Range Over the Past 10 Years
Min: -10.64 Med: 5.73 Max: 9.31
Current: 6.34
WMG's Net Margin % is ranked better than 70.8% of 1024
companies
in the Media - Diversified industry
Industry Median: 1.225
vs WMG: 6.34
Warner Music Group (NAS:WMG) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Warner Music Group Net Margin % Related Terms
Warner Music Group Net Margin % Historical Data
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The historical data trend for Warner Music Group's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Entertainment subindustry, Warner Music Group's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Warner Music Group Net Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Warner Music Group's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Warner Music Group (WMG) has a Net Margin % of 10.57% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Warner Music Group and its competitors. This is 84% above median its historical median of 5.73. According to the industry distribution chart, Warner Music Group ranks #299 out of 1024 companies in the Media - Diversified industry, placing it in the top 29.2%.
Is Warner Music Group's Net Margin % too high?
Warner Music Group's current Net Margin % of 10.57% is 84% above median its 10-year median of 5.73. The Media - Diversified industry median Net Margin % is 1.23. Warner Music Group's value of 10.57% is 762.9% above this industry median. Based on the distribution chart, Warner Music Group ranks #299 out of 1024 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Warner Music Group has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Warner Music Group's Net Margin % compare to TKO and NWSA?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #299 out of 1024 companies for Net Margin %. This puts Warner Music Group in the upper half of its industry. The industry median Net Margin % is 1.23. Warner Music Group's value of 10.57% is 762.9% above this benchmark. While the company's 10-year median is 5.73 vs. the industry median of 1.23, Warner Music Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Media - Diversified company?
The median Net Margin % among Media - Diversified companies is 1.23, based on 1,024 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Warner Music Group's current Net Margin % of 10.57% is 762.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Warner Music Group and its competitors. For the Media - Diversified industry, the median Net Margin % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Music Group's current Net Margin % is 10.57%, which is 84% above median its own 10-year median of 5.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Warner Music Group stock overvalued right now?
Based on GuruFocus' analysis, Warner Music Group (WMG) is currently considered Modestly Undervalued. The stock's GF Value™ is $35.06, compared to a current price of $26.92 — trading 23.2% below its estimated fair value. The current Net Margin % is 10.57%, which is 84% above median its 10-year median of 5.73 and 762.9% above the Media - Diversified industry median of 1.23. Warner Music Group's overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Warner Music Group (WMG), the current Net Margin % is 10.57% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Warner Music Group (WMG) Overvalued in 2026?
Based on GuruFocus' analysis, Warner Music Group stock appears to be undervalued.
The current stock price of $26.92 is trading 23.2% below its estimated GF Value™ of $35.06.
GuruFocus considers Warner Music Group to be Modestly Undervalued.
Key valuation signals for WMG:
Net Margin %: 10.57% (84% above median its 10-year median of 5.73)
GF Value™: $35.06 vs. price of $26.92 (23.2% below fair value)
Industry Position: 762.9% above the Media - Diversified median (#299 of 1024)
No single metric tells the full story. See the WMG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Warner Music is the third-largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing notable record labels including Atlantic Records, Warner Records, Elektra Records. Some of the most successful current artists signed to record deals with Warner include Ed Sheeran, Bruno Mars, Cardi B, and Dua Lipa. Warner's remaining revenue comes from its publishing business, where Warner Chappell represents more than 180,000 songwriters and composers, some of whom are also Warner recording artists but many of whom are not recording artists or are attached to other labels. Warner Chappell controls more than 1 million musical compositions. Access Industries controls 98% of Warner's voting rights, while holding a 72% economic interest.
79GF Score
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