UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - AMS:UMG - NL0015000IY2 - Common Stock
21.58 EUR
-0.52 (-2.35%)
UMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 45 industry peers in the Entertainment industry. While UMG belongs to the best of the industry regarding profitability, there are concerns on its financial health. UMG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
UMG had positive earnings in the past year.
In the past year UMG had a positive cash flow from operations.
UMG had positive earnings in each of the past 5 years.
Each year in the past 5 years UMG had a positive operating cash flow.
1.2 Ratios
UMG has a better Return On Assets (11.40%) than 95.56% of its industry peers.
With an excellent Return On Equity value of 42.77%, UMG belongs to the best of the industry, outperforming 97.78% of the companies in the same industry.
The Return On Invested Capital of UMG (11.64%) is better than 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UMG is significantly above the industry average of 9.82%.
The 3 year average ROIC (17.13%) for UMG is well above the current ROIC(11.64%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.4% | ||
| ROE | 42.77% | ||
| ROIC | 11.64% |
ROA(3y)9.46%
ROA(5y)9.51%
ROE(3y)40.62%
ROE(5y)49.82%
ROIC(3y)17.13%
ROIC(5y)16.12%
1.3 Margins
UMG's Profit Margin of 17.63% is amongst the best of the industry. UMG outperforms 88.89% of its industry peers.
UMG's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.00%, UMG belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Operating Margin of UMG has remained more or less at the same level.
UMG's Gross Margin of 42.99% is on the low side compared to the rest of the industry. UMG is outperformed by 66.67% of its industry peers.
UMG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15% | ||
| PM (TTM) | 17.63% | ||
| GM | 42.99% |
OM growth 3Y-2.92%
OM growth 5Y0.16%
PM growth 3Y19.16%
PM growth 5Y5.36%
GM growth 3Y-2.09%
GM growth 5Y-1.63%
2. Health
2.1 Basic Checks
UMG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for UMG has been increased compared to 1 year ago.
UMG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UMG has been reduced compared to a year ago.
2.2 Solvency
UMG has an Altman-Z score of 0.42. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
UMG's Altman-Z score of 0.42 is on the low side compared to the rest of the industry. UMG is outperformed by 66.67% of its industry peers.
The Debt to FCF ratio of UMG is 2.22, which is a good value as it means it would take UMG, 2.22 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of UMG (2.22) is better than 71.11% of its industry peers.
UMG has a Debt/Equity ratio of 0.54. This is a neutral value indicating UMG is somewhat dependend on debt financing.
The Debt to Equity ratio of UMG (0.54) is comparable to the rest of the industry.
Although UMG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 0.42 |
ROIC/WACC1.65
WACC7.06%
2.3 Liquidity
A Current Ratio of 0.63 indicates that UMG may have some problems paying its short term obligations.
UMG has a worse Current ratio (0.63) than 66.67% of its industry peers.
UMG has a Quick Ratio of 0.63. This is a bad value and indicates that UMG is not financially healthy enough and could expect problems in meeting its short term obligations.
UMG has a Quick ratio of 0.60. This is in the lower half of the industry: UMG underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.18% over the past year.
The Earnings Per Share has been growing by 15.91% on average over the past years. This is quite good.
UMG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.54%.
Measured over the past years, UMG shows a quite strong growth in Revenue. The Revenue has been growing by 10.57% on average per year.
EPS 1Y (TTM)66.18%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%N/A
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
3.2 Future
Based on estimates for the next years, UMG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.57% on average per year.
UMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y10.68%
EPS Next 2Y10.16%
EPS Next 3Y10.21%
EPS Next 5Y10.57%
Revenue Next Year5.5%
Revenue Next 2Y6.09%
Revenue Next 3Y6.47%
Revenue Next 5Y6.28%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.10, which indicates a rather expensive current valuation of UMG.
75.56% of the companies in the same industry are more expensive than UMG, based on the Price/Earnings ratio.
UMG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.56.
The Price/Forward Earnings ratio is 19.42, which indicates a rather expensive current valuation of UMG.
Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of UMG to the average of the S&P500 Index (34.62), we can say UMG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 19.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UMG is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UMG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.5 | ||
| EV/EBITDA | 20 |
4.3 Compensation for Growth
UMG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of UMG may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)1.2
EPS Next 2Y10.16%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
UMG's Dividend Yield is rather good when compared to the industry average which is at 2.20. UMG pays more dividend than 91.11% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, UMG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
UMG pays out 44.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.87%
EPS Next 2Y10.16%
EPS Next 3Y10.21%
AMS:UMG (11/18/2025, 5:36:15 PM)
21.58
-0.52 (-2.35%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners34.96%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap39.58B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.85
Price Target29.18 (35.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP44.87%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.55%
PT rev (3m)-0.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 19.42 | ||
| P/S | 3.34 | ||
| P/FCF | 23.5 | ||
| P/OCF | 22.36 | ||
| P/B | 8.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20 |
EPS(TTM)1.13
EY5.24%
EPS(NY)1.11
Fwd EY5.15%
FCF(TTM)0.92
FCFY4.25%
OCF(TTM)0.97
OCFY4.47%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.79
PEG (5Y)1.2
Graham Number8.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.4% | ||
| ROE | 42.77% | ||
| ROCE | 15.95% | ||
| ROIC | 11.64% | ||
| ROICexc | 12.22% | ||
| ROICexgc | 35.79% | ||
| OM | 15% | ||
| PM (TTM) | 17.63% | ||
| GM | 42.99% | ||
| FCFM | 14.23% |
ROA(3y)9.46%
ROA(5y)9.51%
ROE(3y)40.62%
ROE(5y)49.82%
ROIC(3y)17.13%
ROIC(5y)16.12%
ROICexc(3y)18.53%
ROICexc(5y)17.84%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)23.45%
ROCE(5y)22.06%
ROICexgc growth 3Y-73.19%
ROICexgc growth 5Y-8.8%
ROICexc growth 3Y-5.14%
ROICexc growth 5Y-4.57%
OM growth 3Y-2.92%
OM growth 5Y0.16%
PM growth 3Y19.16%
PM growth 5Y5.36%
GM growth 3Y-2.09%
GM growth 5Y-1.63%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 21.03% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 80.68 | ||
| Cash Conversion | 81.04% | ||
| Profit Quality | 80.73% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.42 |
F-Score5
WACC7.06%
ROIC/WACC1.65
Cap/Depr(3y)14.44%
Cap/Depr(5y)12.06%
Cap/Sales(3y)0.5%
Cap/Sales(5y)0.41%
Profit Quality(3y)147.67%
Profit Quality(5y)127.18%
High Growth Momentum
Growth
EPS 1Y (TTM)66.18%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%N/A
EPS Next Y10.68%
EPS Next 2Y10.16%
EPS Next 3Y10.21%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
Revenue Next Year5.5%
Revenue Next 2Y6.09%
Revenue Next 3Y6.47%
Revenue Next 5Y6.28%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.89%
EBIT Next 3Y20.25%
EBIT Next 5Y13.92%
FCF growth 1Y-1.41%
FCF growth 3Y13.87%
FCF growth 5Y22.23%
OCF growth 1Y0.97%
OCF growth 3Y15.47%
OCF growth 5Y20.7%
UNIVERSAL MUSIC GROUP NV / UMG.AS FAQ
Can you provide the ChartMill fundamental rating for UNIVERSAL MUSIC GROUP NV?
ChartMill assigns a fundamental rating of 5 / 10 to UMG.AS.
Can you provide the valuation status for UNIVERSAL MUSIC GROUP NV?
ChartMill assigns a valuation rating of 4 / 10 to UNIVERSAL MUSIC GROUP NV (UMG.AS). This can be considered as Fairly Valued.
How profitable is UNIVERSAL MUSIC GROUP NV (UMG.AS) stock?
UNIVERSAL MUSIC GROUP NV (UMG.AS) has a profitability rating of 8 / 10.
What is the financial health of UNIVERSAL MUSIC GROUP NV (UMG.AS) stock?
The financial health rating of UNIVERSAL MUSIC GROUP NV (UMG.AS) is 3 / 10.
What is the expected EPS growth for UNIVERSAL MUSIC GROUP NV (UMG.AS) stock?
The Earnings per Share (EPS) of UNIVERSAL MUSIC GROUP NV (UMG.AS) is expected to grow by 10.68% in the next year.