UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis

Europe • Euronext Amsterdam • AMS:UMG • NL0015000IY2

19.705 EUR
+0.05 (+0.28%)
Last: Feb 6, 2026, 07:00 PM
Fundamental Rating

5

Overall UMG gets a fundamental rating of 5 out of 10. We evaluated UMG against 48 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.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • UMG had positive earnings in the past year.
  • UMG had a positive operating cash flow in the past year.
  • Each year in the past 5 years UMG has been profitable.
  • Each year in the past 5 years UMG had a positive operating cash flow.
UMG.AS Yearly Net Income VS EBIT VS OCF VS FCFUMG.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

  • UMG has a better Return On Assets (11.40%) than 93.75% of its industry peers.
  • Looking at the Return On Equity, with a value of 42.77%, UMG belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
  • UMG has a better Return On Invested Capital (11.64%) than 85.42% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for UMG is significantly above the industry average of 9.36%.
  • The last Return On Invested Capital (11.64%) for UMG is well below the 3 year average (17.13%), which needs to be investigated, but indicates that UMG had better years and this may not be a problem.
Industry RankSector 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%
UMG.AS Yearly ROA, ROE, ROICUMG.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

1.3 Margins

  • The Profit Margin of UMG (17.63%) is better than 89.58% of its industry peers.
  • UMG's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 15.00%, UMG belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
  • UMG's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of UMG (42.99%) is worse than 62.50% of its industry peers.
  • UMG's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
UMG.AS Yearly Profit, Operating, Gross MarginsUMG.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
UMG.AS Yearly Shares OutstandingUMG.AS Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
UMG.AS Yearly Total Debt VS Total AssetsUMG.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

  • UMG has an Altman-Z score of 0.22. 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 0.22 is on the low side compared to the rest of the industry. UMG is outperformed by 68.75% of its industry peers.
  • UMG has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as UMG would need 2.22 years to pay back of all of its debts.
  • UMG has a better Debt to FCF ratio (2.22) than 70.83% 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.
  • UMG's Debt to Equity ratio of 0.54 is in line compared to the rest of the industry. UMG outperforms 54.17% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for UMG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 2.22
Altman-Z 0.22
ROIC/WACC1.68
WACC6.93%
UMG.AS Yearly LT Debt VS Equity VS FCFUMG.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 0.63 indicates that UMG may have some problems paying its short term obligations.
  • The Current ratio of UMG (0.63) is worse than 64.58% of its industry peers.
  • A Quick Ratio of 0.60 indicates that UMG may have some problems paying its short term obligations.
  • The Quick ratio of UMG (0.60) is worse than 64.58% of its industry peers.
Industry RankSector Rank
Current Ratio 0.63
Quick Ratio 0.6
UMG.AS Yearly Current Assets VS Current LiabilitesUMG.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • UMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.18%, which is quite impressive.
  • UMG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.91% yearly.
  • Looking at the last year, UMG shows a small growth in Revenue. The Revenue has grown by 6.54% in the last year.
  • The Revenue has been growing by 10.57% on average over the past years. This is quite good.
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.
  • The Revenue is expected to grow by 5.97% on average over the next years.
EPS Next Y11.55%
EPS Next 2Y9.92%
EPS Next 3Y9.96%
EPS Next 5Y10.57%
Revenue Next Year5.59%
Revenue Next 2Y6.38%
Revenue Next 3Y6.65%
Revenue Next 5Y5.97%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
UMG.AS Yearly Revenue VS EstimatesUMG.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
UMG.AS Yearly EPS VS EstimatesUMG.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 17.44 indicates a rather expensive valuation of UMG.
  • Compared to the rest of the industry, the Price/Earnings ratio of UMG indicates a rather cheap valuation: UMG is cheaper than 81.25% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.92, UMG is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 17.80, which indicates a rather expensive current valuation of UMG.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 72.92% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of UMG to the average of the S&P500 Index (27.78), we can say UMG is valued slightly cheaper.
Industry RankSector Rank
PE 17.44
Fwd PE 17.8
UMG.AS Price Earnings VS Forward Price EarningsUMG.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • UMG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • 60.42% of the companies in the same industry are more expensive than UMG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.46
EV/EBITDA 17.95
UMG.AS Per share dataUMG.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

  • The 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)1.51
PEG (5Y)1.1
EPS Next 2Y9.92%
EPS Next 3Y9.96%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • UMG has a Yearly Dividend Yield of 2.51%.
  • Compared to an average industry Dividend Yield of 1.06, UMG pays a better dividend. On top of this UMG pays more dividend than 91.67% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, UMG pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.51%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
UMG.AS Yearly Dividends per shareUMG.AS Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

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 2Y9.92%
EPS Next 3Y9.96%
UMG.AS Yearly Income VS Free CF VS DividendUMG.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
UMG.AS Dividend Payout.UMG.AS Dividend Payout, showing the Payout Ratio.UMG.AS Dividend Payout.PayoutRetained Earnings

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UNIVERSAL MUSIC GROUP NV

AMS:UMG (2/6/2026, 7:00:00 PM)

19.705

+0.05 (+0.28%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-30
Earnings (Next)02-26
Inst Owners35.41%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap36.14B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.08
Price Target28.82 (46.26%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.51%
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)0.19%
PT rev (3m)-1.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.58%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 17.44
Fwd PE 17.8
P/S 3.05
P/FCF 21.46
P/OCF 20.42
P/B 7.41
P/tB N/A
EV/EBITDA 17.95
EPS(TTM)1.13
EY5.73%
EPS(NY)1.11
Fwd EY5.62%
FCF(TTM)0.92
FCFY4.66%
OCF(TTM)0.97
OCFY4.9%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.51
PEG (5Y)1.1
Graham Number8.22
Profitability
Industry RankSector 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 RankSector 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 0.22
F-Score5
WACC6.93%
ROIC/WACC1.68
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 Y11.55%
EPS Next 2Y9.92%
EPS Next 3Y9.96%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
Revenue Next Year5.59%
Revenue Next 2Y6.38%
Revenue Next 3Y6.65%
Revenue Next 5Y5.97%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.22%
EBIT Next 3Y19.93%
EBIT Next 5Y13.59%
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.


What is the valuation status of UNIVERSAL MUSIC GROUP NV (UMG.AS) stock?

ChartMill assigns a valuation rating of 5 / 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.


Can you provide the PE and PB ratios for UMG stock?

The Price/Earnings (PE) ratio for UNIVERSAL MUSIC GROUP NV (UMG.AS) is 17.44 and the Price/Book (PB) ratio is 7.41.


Is the dividend of UNIVERSAL MUSIC GROUP NV sustainable?

The dividend rating of UNIVERSAL MUSIC GROUP NV (UMG.AS) is 4 / 10 and the dividend payout ratio is 44.87%.