UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
21.6 EUR
-0.59 (-2.66%)
Overall UMG gets a fundamental rating of 5 out of 10. We evaluated UMG against 45 industry peers in the Entertainment industry. UMG scores excellent on profitability, but 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.
UMG had a positive operating cash flow in the past year.
In the past 5 years UMG has always been profitable.
UMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UMG has a Return On Assets of 11.40%. This is amongst the best in the industry. UMG outperforms 95.56% of its industry peers.
The Return On Equity of UMG (42.77%) is better than 95.56% of its industry peers.
UMG has a better Return On Invested Capital (11.64%) 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 9.60%.
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 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 has a better Profit Margin (17.63%) than 91.11% of its industry peers.
In the last couple of years the Profit Margin of UMG has grown nicely.
UMG has a Operating Margin of 15.00%. This is amongst the best in the industry. UMG outperforms 88.89% of its industry peers.
UMG's Operating Margin has been stable in the last couple of years.
UMG has a Gross Margin of 42.99%. This is in the lower half of the industry: UMG underperforms 64.44% 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.
UMG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for UMG has been increased compared to 5 years ago.
The debt/assets ratio for UMG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that UMG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.38, UMG is doing worse than 66.67% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.22, UMG is doing good in the industry, outperforming 73.33% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that UMG is somewhat dependend on debt financing.
UMG has a Debt to Equity ratio (0.54) which 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 | 0.38 |
ROIC/WACC1.67
WACC6.97%
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 64.44% 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 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.6 |
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.
The Earnings Per Share has been growing by 15.91% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.54% in the past year.
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.
The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y9.81%
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 5Y6.28%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.12, UMG is valued on the expensive side.
88.89% 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 26.92.
A Price/Forward Earnings ratio of 19.52 indicates a rather expensive valuation of UMG.
Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.57. UMG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.12 | ||
| Fwd PE | 19.52 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UMG.
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 | 23.53 | ||
| EV/EBITDA | 19.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UMG does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of UMG may justify a higher PE ratio.
PEG (NY)1.95
PEG (5Y)1.2
EPS Next 2Y9.92%
EPS Next 3Y9.96%
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 0.82. UMG pays more dividend than 91.11% of the companies in the same industry.
UMG's Dividend Yield is a higher than the S&P500 average which is at 1.94.
| 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
44.87% of the earnings are spent on dividend by UMG. This is a bit on the high side, but may be sustainable.
DP44.87%
EPS Next 2Y9.92%
EPS Next 3Y9.96%
AMS:UMG (1/7/2026, 7:00:00 PM)
21.6
-0.59 (-2.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners35.41%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap39.62B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.85
Price Target28.77 (33.19%)
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)-1.11%
PT rev (3m)-1.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.12 | ||
| Fwd PE | 19.52 | ||
| P/S | 3.35 | ||
| P/FCF | 23.53 | ||
| P/OCF | 22.38 | ||
| P/B | 8.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.58 |
EPS(TTM)1.13
EY5.23%
EPS(NY)1.11
Fwd EY5.12%
FCF(TTM)0.92
FCFY4.25%
OCF(TTM)0.97
OCFY4.47%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.95
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 | 0.38 |
F-Score5
WACC6.97%
ROIC/WACC1.67
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 Y9.81%
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 5Y6.28%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.22%
EBIT Next 3Y19.93%
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.
What is the valuation status of UNIVERSAL MUSIC GROUP NV (UMG.AS) stock?
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.
Can you provide the PE and PB ratios for UMG stock?
The Price/Earnings (PE) ratio for UNIVERSAL MUSIC GROUP NV (UMG.AS) is 19.12 and the Price/Book (PB) ratio is 8.12.
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%.