UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
22.08 EUR
+0.24 (+1.1%)
We assign a fundamental rating of 5 out of 10 to UMG. UMG was compared to 44 industry peers in the Entertainment industry. UMG has an excellent profitability rating, but there are concerns on its financial health. UMG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year UMG was profitable.
UMG had a positive operating cash flow in the past year.
In the past 5 years UMG has always 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 95.45% of the companies in the same industry.
UMG's Return On Equity of 42.77% is amongst the best of the industry. UMG outperforms 97.73% of its industry peers.
With an excellent Return On Invested Capital value of 11.64%, UMG belongs to the best of the industry, outperforming 88.64% 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 10.01%.
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 has a Profit Margin of 17.63%. This is amongst the best in the industry. UMG outperforms 88.64% 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 86.36% of its industry peers.
UMG's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 42.99%, UMG is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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
UMG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, UMG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.40, we must say that UMG is in the distress zone and has some risk of bankruptcy.
UMG has a Altman-Z score of 0.40. This is in the lower half of the industry: UMG underperforms 65.91% 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.
Looking at the Debt to FCF ratio, with a value of 2.22, UMG is in the better half of the industry, outperforming 75.00% 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 in line with its industry peers.
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 | 0.4 |
ROIC/WACC1.67
WACC6.98%
2.3 Liquidity
UMG has a Current 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 worse Current ratio (0.63) than 63.64% 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 worse Quick ratio (0.60) than 63.64% 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.
UMG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.54%.
UMG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.57% yearly.
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
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 6.28% on average over the next years.
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
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
Based on the Price/Earnings ratio of 19.54, the valuation of UMG can be described as rather expensive.
Based on the Price/Earnings ratio, UMG is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of UMG to the average of the S&P500 Index (25.98), we can say UMG is valued slightly cheaper.
A Price/Forward Earnings ratio of 19.86 indicates a rather expensive valuation of UMG.
Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than the industry average as 79.55% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of UMG to the average of the S&P500 Index (35.79), we can say UMG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 19.86 |
4.2 Price Multiples
UMG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.05 | ||
| EV/EBITDA | 19.79 |
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.
UMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)1.23
EPS Next 2Y10.16%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.34%.
UMG's Dividend Yield is rather good when compared to the industry average which is at 2.34. UMG pays more dividend than 90.91% of the companies in the same industry.
UMG's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| 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 2Y10.16%
EPS Next 3Y10.21%
AMS:UMG (11/25/2025, 5:36:15 PM)
22.08
+0.24 (+1.1%)
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 Cap40.50B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.85
Price Target29.09 (31.75%)
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)-0.86%
PT rev (3m)-0.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 19.86 | ||
| P/S | 3.42 | ||
| P/FCF | 24.05 | ||
| P/OCF | 22.88 | ||
| P/B | 8.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.79 |
EPS(TTM)1.13
EY5.12%
EPS(NY)1.11
Fwd EY5.03%
FCF(TTM)0.92
FCFY4.16%
OCF(TTM)0.97
OCFY4.37%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.83
PEG (5Y)1.23
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 | 0.4 |
F-Score5
WACC6.98%
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 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 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.
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.