UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - AMS:UMG - NL0015000IY2 - Common Stock
23.8 EUR
+0.03 (+0.13%)
Overall UMG gets a fundamental rating of 5 out of 10. We evaluated UMG 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. While showing a medium growth rate, UMG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year UMG was profitable.
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
Looking at the Return On Assets, with a value of 14.23%, UMG belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
UMG has a better Return On Equity (53.39%) than 97.78% of its industry peers.
The Return On Invested Capital of UMG (12.89%) is better than 86.67% of its industry peers.
UMG had an Average Return On Invested Capital over the past 3 years of 17.13%. This is significantly above the industry average of 10.27%.
The last Return On Invested Capital (12.89%) 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 | 14.23% | ||
| ROE | 53.39% | ||
| ROIC | 12.89% |
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
With an excellent Profit Margin value of 21.36%, UMG belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
UMG's Profit Margin has improved in the last couple of years.
UMG has a better Operating Margin (16.13%) than 88.89% of its industry peers.
UMG's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 42.78%, UMG is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
UMG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.13% | ||
| PM (TTM) | 21.36% | ||
| GM | 42.78% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), UMG is creating value.
Compared to 1 year ago, UMG has more shares outstanding
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
UMG has an Altman-Z score of 0.61. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.61, UMG is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
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.
UMG has a Debt/Equity ratio of 0.54. This is a neutral value indicating UMG is somewhat dependend on debt financing.
UMG has a Debt to Equity ratio (0.54) which is in line with 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 0.61 |
ROIC/WACC1.82
WACC7.09%
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 68.89% 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 68.89% 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 10.25%, which is quite good.
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 6.12%.
The Revenue has been growing by 10.57% on average over the past years. This is quite good.
EPS 1Y (TTM)10.25%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%9.09%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%6.42%
3.2 Future
The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.09% on average over the next years.
EPS Next Y11.24%
EPS Next 2Y11.15%
EPS Next 3Y10.62%
EPS Next 5Y10.57%
Revenue Next Year5.25%
Revenue Next 2Y6.56%
Revenue Next 3Y6.69%
Revenue Next 5Y6.09%
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
With a Price/Earnings ratio of 23.80, UMG is valued on the expensive side.
UMG's Price/Earnings ratio is a bit cheaper when compared to the industry. UMG is cheaper than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.83, UMG is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.03, the valuation of UMG can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 73.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.82, UMG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 21.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UMG indicates a slightly more expensive valuation: UMG is more expensive than 60.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as UMG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.92 | ||
| EV/EBITDA | 19.68 |
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)2.12
PEG (5Y)1.5
EPS Next 2Y11.15%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.20%.
Compared to an average industry Dividend Yield of 2.84, UMG pays a better dividend. On top of this UMG pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, UMG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
35.94% of the earnings are spent on dividend by UMG. This is a low number and sustainable payout ratio.
DP35.94%
EPS Next 2Y11.15%
EPS Next 3Y10.62%
AMS:UMG (10/24/2025, 3:41:09 PM)
23.8
+0.03 (+0.13%)
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 Cap43.65B
Revenue(TTM)12.19B
Net Income(TTM)2.60B
Analysts72.31
Price Target29.34 (23.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP35.94%
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%
PT rev (3m)-0.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.43%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 21.03 | ||
| P/S | 3.58 | ||
| P/FCF | 25.92 | ||
| P/OCF | 24.66 | ||
| P/B | 8.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.68 |
EPS(TTM)1
EY4.2%
EPS(NY)1.13
Fwd EY4.75%
FCF(TTM)0.92
FCFY3.86%
OCF(TTM)0.97
OCFY4.05%
SpS6.65
BVpS2.66
TBVpS-1.16
PEG (NY)2.12
PEG (5Y)1.5
Graham Number7.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 53.39% | ||
| ROCE | 17.67% | ||
| ROIC | 12.89% | ||
| ROICexc | 13.53% | ||
| ROICexgc | 39.64% | ||
| OM | 16.13% | ||
| PM (TTM) | 21.36% | ||
| GM | 42.78% | ||
| FCFM | 13.82% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 21.03% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 89.36 | ||
| Cash Conversion | 74.53% | ||
| Profit Quality | 64.67% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.61 |
F-Score5
WACC7.09%
ROIC/WACC1.82
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)10.25%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%9.09%
EPS Next Y11.24%
EPS Next 2Y11.15%
EPS Next 3Y10.62%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%6.42%
Revenue Next Year5.25%
Revenue Next 2Y6.56%
Revenue Next 3Y6.69%
Revenue Next 5Y6.09%
EBIT growth 1Y24.19%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.89%
EBIT Next 3Y20.25%
EBIT Next 5Y13.76%
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 3 / 10 to UNIVERSAL MUSIC GROUP NV (UMG.AS). This can be considered as Overvalued.
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 11.24% in the next year.