NASDAQ · STOCK
Warner Music Group
$28.05
52W $23.34 – $35.42
51/100
—
32.3
1.29
Explore WMG Further
Is WMG Bullish or Bearish?
Mixed.
Innellis AI committee rates Warner Music Group (WMG) Watch with a composite score of 51/100
, based on 7 analysts with 43% agreement.
Last updated July 20, 2026.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case — market regime is bullish (bull market -- normal position sizing). Risk Analyst remains cautious — high leverage (debt-to-equity 6.75) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- Positive MACD histogram signals bullish momentum.
- Daily volatility (ATR%) above ~3% is treated as elevated risk.
Bear Case
- Daily trend is down — entering long positions against the trend.
- Both daily and weekly trends are bearish — strong multi-timeframe downtrend.
- Bearish candlestick pattern(s) detected: Shooting Star.
- Fundamental score is weak (14.2/100) — poor financial health or expensive valuation.
Price History (6M)
AI Investment Committee
Committee Consensus
As of July 20, 2026
Overall Committee Score
51/100
Agreement
43%
Analysts
7
Conviction
Contested
Value Analyst
neutral
45
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 67.1% shows genuine earnings power backing the valuation
− P/E of 32.7 is moderate-to-rich
Growth Analyst
bearish
40
/ 100 · High confidence
Growth story is weak, decelerating, or inconsistent
− EPS declining -0.9% YoY despite any revenue growth
Technical Analyst
neutral
56
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst
bearish
32
/ 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 6.75) amplifies downside in a stress scenario
Macro Analyst
bullish
70
/ 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst
bullish
67
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.29 across 7 articles, 14d)
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2975.52)
Investment Thesis Evolution
Committee score moved marginally from 51.0 to 50.8.
- New bearish signals: 1 appeared.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- News Analyst: +1 bullish signal(s).
- Portfolio Manager: +1 bearish signal(s).
Comparing 2026-07-19 to 2026-07-20 (1 day apart).
Technical Analysis
RSI (14)
46.4
Neutral
MACD Histogram
0.136
Bullish Momentum
Trend Direction
Downtrend
Weekly: Downtrend
Market Structure
Mixed
Support
$27.38
Resistance
$30.30
Bollinger %B
0.56
Inside Bands
Price vs Moving Averages
EMA 9
$28.27
Below
EMA 21
$28.38
Below
EMA 50
$28.88
Below
EMA 200
$29.43
Below
Fundamental Analysis
Valuation
10
Growth
22
Profitability
1
Financial Health
0
Cash Flow
37
Valuation
P/E Ratio
32.3×
P/B Ratio
19.74×
PEG Ratio
27.76
Dividend Yield
0.03%
52W High
$35.42
52W Low
$23.34
Quality & Growth
ROE
56.4%
ROA
3.7%
Gross Margin
45.8%
Operating Margin
12.8%
Revenue Growth YoY
—
Debt / Equity
6.70
AI Fundamental Assessment
P/E ratio of 32.3 (rich relative to a 15-40x range); Price-to-book of 19.7x; PEG ratio of 27.8 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 0.6%; Return on assets of 0.0%; Net margin of 0.1%; Gross margin of 0.5%; Current ratio of 0.73 (tight short-term liquidity); Debt-to-equity of 6.70; Free cash flow margin of 0.8% (thin cash generation); Free cash flow per share is positive (1.36); Most recent quarter beat estimates by 25.4%; EPS growth decelerating (+57.1% -> +3.0% QoQ); Analyst estimates falling over recent quarters
Key Risks
- Daily trend is down — entering long positions against the trend.
- Both daily and weekly trends are bearish — strong multi-timeframe downtrend.
- Bearish candlestick pattern(s) detected: Shooting Star.
- Fundamental score is weak (14.2/100) — poor financial health or expensive valuation.
This risk summary is generated from quantitative data signals, not qualitative opinion. All investors should conduct their own due diligence. This is not financial advice.
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