UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
21.275 EUR
-0.3 (-1.41%)
We assign a fundamental rating of 5 out of 10 to UMG. UMG was compared to 48 industry peers in the Entertainment industry. While UMG has a great profitability rating, there are quite some concerns on its financial health. UMG has a decent growth rate and is not valued too expensively.
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.
- 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.
1.2 Ratios
- With an excellent Return On Assets value of 11.40%, UMG belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 42.77%, UMG belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 11.64%, UMG belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- UMG had an Average Return On Invested Capital over the past 3 years of 17.13%. This is significantly above the industry average of 9.05%.
- 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
- Looking at the Profit Margin, with a value of 17.63%, UMG belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- In the last couple of years the Profit Margin of UMG has grown nicely.
- Looking at the Operating Margin, with a value of 15.00%, UMG belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
- UMG's Operating Margin has been stable in the last couple of years.
- UMG's Gross Margin of 42.99% is on the low side compared to the rest of the industry. UMG is outperformed by 60.42% of its industry peers.
- In the last couple of years the Gross Margin of UMG has declined.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UMG is creating value.
- Compared to 1 year ago, UMG has more shares outstanding
- Compared to 5 years ago, UMG has more shares outstanding
- The debt/assets ratio for UMG has been reduced compared to a year ago.
2.2 Solvency
- UMG has an Altman-Z score of 0.38. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
- UMG has a Altman-Z score of 0.38. This is in the lower half of the industry: UMG underperforms 68.75% 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.
- UMG has a Debt to FCF ratio of 2.22. This is in the better half of the industry: UMG outperforms 75.00% 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.
- With a decent Debt to Equity ratio value of 0.54, UMG is doing good in the industry, outperforming 60.42% of the companies in the same industry.
| 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.
- With a Current ratio value of 0.63, UMG is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
- A Quick Ratio of 0.60 indicates that UMG may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.60, UMG is doing worse than 64.58% of the companies in the same industry.
| 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.
- 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
- UMG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.57% yearly.
- UMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.97% yearly.
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 5Y5.97%
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.
- 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
- A Price/Earnings ratio of 18.83 indicates a rather expensive valuation of UMG.
- 83.33% of the companies in the same industry are more expensive than UMG, based on the Price/Earnings ratio.
- UMG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 19.22, which indicates a rather expensive current valuation of UMG.
- Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than 77.08% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, UMG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 19.22 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as UMG.
- The rest of the industry has a similar Price/Free Cash Flow ratio as UMG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.17 | ||
| EV/EBITDA | 19.57 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of UMG may justify a higher PE ratio.
PEG (NY)1.92
PEG (5Y)1.18
EPS Next 2Y9.92%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
- UMG has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.78, UMG pays a better dividend. On top of this UMG pays more dividend than 91.67% of the companies listed in the same industry.
- UMG's Dividend Yield is a higher than the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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 2Y9.92%
EPS Next 3Y9.96%
AMS:UMG (1/19/2026, 12:53:03 PM)
21.275
-0.3 (-1.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-30 2025-10-30
Earnings (Next)03-04 2026-03-04/amc
Inst Owners35.41%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap39.02B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.08
Price Target28.82 (35.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)-0.92%
PT rev (3m)-1.77%
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 | 18.83 | ||
| Fwd PE | 19.22 | ||
| P/S | 3.3 | ||
| P/FCF | 23.17 | ||
| P/OCF | 22.05 | ||
| P/B | 8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.57 |
EPS(TTM)1.13
EY5.31%
EPS(NY)1.11
Fwd EY5.2%
FCF(TTM)0.92
FCFY4.32%
OCF(TTM)0.97
OCFY4.54%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.92
PEG (5Y)1.18
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 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 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 18.83 and the Price/Book (PB) ratio is 8.
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%.