Does Warner Music Group Corp. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Warner Music Group Corp. (WMG) 57.9 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 80, returns on capital 57, balance-sheet safety 14, capital discipline 69.

How has WMG's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 57.9 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Warner Music Group Corp.

WMG · Communications · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power80

Median gross margin 47.4% over 10y, very stable.

Returns on capital57

Median ROIC 13.4%, above the 9% hurdle in 60% of years.

Balance-sheet safety14

Net debt/EBITDA 3.3x, interest coverage 4x.

Capital discipline69

Owner earnings +9.1%/yr, share count flat.

Margin of safety

Above valueOn sale

No price data

Owner earnings (normalized): $635.0M
Est. intrinsic value / share: —
Recent price: $28.33
Discount to value: No price data

Conservative model: 9% discount rate, 4% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

17 years of fundamentals

The business, in plain English

Warner Music Group Corp. booked $6.7B of revenue in FY2025 in the Communications sector and kept 45.8% of it as gross profit — a solid-margin business by that measure. After every other cost, 5.4% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $3.0B (FY2010) to $6.7B (FY2025) — about 5.5% a year compounded over 15 years.

It earned 12.5% on invested capital in FY2025, with a median of 7.5% across 14 filed years. The Returns on Capital filter above scores it 57/100.

The balance sheet carried $4.1B of total debt in FY2025 against $602.0M of owner earnings — roughly 6.7 years of owner earnings to retire it all. Balance-Sheet Safety scores it 14/100.

The share count rose 6.0% between FY2011 and FY2019 — existing owners have been diluted over the record. Capital Discipline scores it 69/100.

Put together: Pricing Power is the strongest of the four filters (80/100) and Balance-Sheet Safety the weakest (14/100), which is how WMG lands at 58/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$6.7B FY2025

Gross marginRevenue kept after cost of goods45.8% FY2025

Return on invested capitalOperating profit on the capital employed12.5% FY2025

Owner earningsCash an owner could take out$602.0M FY2025

Gaps in a line mean that item isn’t in WMG’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale57.9 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — WMG has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Communications context

#13 of 56 scored Communications companies, ranked by Moat Score.

Nearest peers by Moat Score

#11SPOK SPOK HOLDINGS, INC.58.5 out of 100, Shallow moatShallow moat
#12ZD ZIFF DAVIS, INC.57.9 out of 100, Shallow moatShallow moat
#14GSAT GLOBALSTAR, INC.57.7 out of 100, Shallow moatShallow moat
#15CCOI COGENT COMMUNICATIONS HOLDINGS, INC.55.9 out of 100, Shallow moatShallow moat

Compare WMG with its nearest peers →All Communications companies on the Index →

Common questions about WMG

Does Warner Music Group Corp. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Warner Music Group Corp. (WMG) 57.9 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 80, returns on capital 57, balance-sheet safety 14, capital discipline 69.
How has WMG's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 57.9 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell WMG. See the disclaimer.