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Warner Music GroupHAM:WA4 +1.48%76 3-Year ROIIC % is 14.13 as of Sep. 2025, which is 13% below its 10-year median of 16.25. GuruFocus rates HAM:WA4 with a GF Score™ of 76/100 and a GF Value™ of €30.69. The stock has 2 warning signs investors should review. Among 951 Media - Diversified companies, Warner Music Group ranks better than 69.93% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Warner Music Group's 3-Year ROIIC % for the quarter that ended in Sep. 2025 was 14.13%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Warner Music Group's 3-Year ROIIC % or its related term are showing as below:
HAM:WA4's 3-Year ROIIC % is ranked better than 69.93% of 951
companies
in the Media - Diversified industry
Industry Median: 1.36
vs HAM:WA4: 14.13
Warner Music Group (HAM:WA4) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Warner Music Group 3-Year ROIIC % Related Terms
Warner Music Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Warner Music Group's 3-Year ROIIC % 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.
HAM:WA4 vs NWSA, TKO, PSKY: 3-Year ROIIC % Comparison
For the Entertainment subindustry, Warner Music Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Warner Music Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Warner Music Group's 3-Year ROIIC % falls into.
Warner Music Group's 3-Year ROIIC % for the quarter that ended in Sep. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 597.0243456 (Sep. 2025) - 540.855 (Sep. 2022) )
/
( 6446.232 (Sep. 2025) - 6460.97 (Sep. 2022) )
=
56.1693456
/
-14.738
=
-381.12%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Warner Music Group (HAM:WA4) has a 3-Year ROIIC % of 14.13 as of Sep. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Warner Music Group and its competitors. This is 13% below median its historical median of 16.25. According to the industry distribution chart, Warner Music Group ranks #286 out of 951 companies in the Media - Diversified industry, placing it in the top 30.1%.
Is Warner Music Group's 3-Year ROIIC % too high?
Warner Music Group's current 3-Year ROIIC % of 14.13 is 13% below median its 10-year median of 16.25. The Media - Diversified industry median 3-Year ROIIC % is 1.36. Warner Music Group's value of 14.13 is 939% above this industry median. Based on the distribution chart, Warner Music Group ranks #286 out of 951 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Warner Music Group has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Warner Music Group's 3-Year ROIIC % compare to NWSA and TKO?
According to the Media - Diversified industry distribution chart, Warner Music Group ranks #286 out of 951 companies for 3-Year ROIIC %. This puts Warner Music Group in the upper half of its industry. The industry median 3-Year ROIIC % is 1.36. Warner Music Group's value of 14.13 is 939% above this benchmark. While the company's 10-year median is 16.25 vs. the industry median of 1.36, 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 3-Year ROIIC % for a Media - Diversified company?
The median 3-Year ROIIC % among Media - Diversified companies is 1.36, based on 951 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Warner Music Group's current 3-Year ROIIC % of 14.13 is 939% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Warner Music Group and its competitors. For the Media - Diversified industry, the median 3-Year ROIIC % is 1.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Warner Music Group's current 3-Year ROIIC % is 14.13, which is 13% below median its own 10-year median of 16.25. 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?
Warner Music Group (HAM:WA4) has a current 3-Year ROIIC % of 14.13. The stock's GF Value™ is €30.69, compared to a current price of €24.75 — trading 19.4% below its estimated fair value. The current 3-Year ROIIC % is 14.13, which is 13% below median its 10-year median of 16.25 and 939% above the Media - Diversified industry median of 1.36. Warner Music Group's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Warner Music Group (HAM:WA4), the current 3-Year ROIIC % is 14.13 as of Sep. 2025. 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 (HAM:WA4) Overvalued in 2026?
Based on GuruFocus' analysis, Warner Music Group stock appears to be undervalued.
The current stock price of €24.75 is trading 19.4% below its estimated GF Value™ of €30.69.
Key valuation signals for HAM:WA4:
3-Year ROIIC %: 14.13 (13% below median its 10-year median of 16.25)
GF Value™: €30.69 vs. price of €24.75 (19.4% below fair value)
Industry Position: 939% above the Media - Diversified median (#286 of 951)
No single metric tells the full story. See the HAM:WA4 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.
76GF Score
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