UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
AMS:UMG - Euronext Amsterdam - NL0015000IY2 - Common Stock - Currency: EUR
UMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 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 is valied quite expensively at the moment, while it does show a decent growth rate.
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.
UMG had positive earnings in each of the past 5 years.
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 12.04%, UMG belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
UMG has a better Return On Equity (46.09%) than 95.92% of its industry peers.
With an excellent Return On Invested Capital value of 13.38%, UMG belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UMG is significantly above the industry average of 9.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 46.09% | ||
| ROIC | 13.38% |
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 87.76% of its industry peers.
UMG's Profit Margin has improved in the last couple of years.
UMG has a Operating Margin of 15.00%. This is amongst the best in the industry. UMG outperforms 87.76% of its industry peers.
In the last couple of years the Operating Margin of UMG has remained more or less at the same level.
UMG's Gross Margin of 42.99% is on the low side compared to the rest of the industry. UMG is outperformed by 63.27% 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
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
UMG has more shares outstanding than it did 5 years ago.
UMG has a better debt/assets ratio than last year.
2.2 Solvency
UMG has an Altman-Z score of 0.80. 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 0.80 is in line compared to the rest of the industry. UMG outperforms 44.90% of its industry peers.
UMG has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.92, UMG is doing good in the industry, outperforming 75.51% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that UMG is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.50, UMG perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 0.8 |
ROIC/WACC1.9
WACC7.06%
2.3 Liquidity
UMG has a Current Ratio of 0.60. This is a bad value and indicates that UMG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.60, UMG is not doing good in the industry: 73.47% of the companies in the same industry are doing better.
A Quick Ratio of 0.57 indicates that UMG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, UMG is doing worse than 73.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.18% over the past year.
UMG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.91% yearly.
The Revenue has been growing slightly by 6.54% in the past year.
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%11.35%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%5.84%
3.2 Future
The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
UMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.02% yearly.
EPS Next Y11.11%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
EPS Next 5Y10.57%
Revenue Next Year6.84%
Revenue Next 2Y7.77%
Revenue Next 3Y7.42%
Revenue Next 5Y7.02%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.59, the valuation of UMG can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of UMG indicates a rather cheap valuation: UMG is cheaper than 81.63% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of UMG to the average of the S&P500 Index (27.30), we can say UMG is valued inline with the index average.
A Price/Forward Earnings ratio of 26.20 indicates a quite expensive valuation of UMG.
Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than 67.35% of the companies in the same industry.
UMG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 26.2 |
4.2 Price Multiples
UMG's Enterprise Value to EBITDA ratio is in line with the industry average.
UMG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.39 | ||
| EV/EBITDA | 23.79 |
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)2.12
PEG (5Y)1.48
EPS Next 2Y12.83%
EPS Next 3Y10.32%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 1.93%. 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 2.18. UMG pays more dividend than 93.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, UMG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
UMG pays out 44.73% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.73%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
AMS:UMG (7/9/2025, 12:54:03 PM)
26.66
-0.26 (-0.97%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners29.46%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap48.90B
Analysts73.33
Price Target29.42 (10.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP44.73%
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)0.83%
PT rev (3m)0.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.59 | ||
| Fwd PE | 26.2 | ||
| P/S | 4.13 | ||
| P/FCF | 29.39 | ||
| P/OCF | 27.86 | ||
| P/B | 10.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.79 |
EPS(TTM)1.13
EY4.24%
EPS(NY)1.02
Fwd EY3.82%
FCF(TTM)0.91
FCFY3.4%
OCF(TTM)0.96
OCFY3.59%
SpS6.45
BVpS2.47
TBVpS-1.68
PEG (NY)2.12
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.04% | ||
| ROE | 46.09% | ||
| ROCE | 18.31% | ||
| ROIC | 13.38% | ||
| ROICexc | 14.23% | ||
| ROICexgc | 85.47% | ||
| OM | 15% | ||
| PM (TTM) | 17.63% | ||
| GM | 42.99% | ||
| FCFM | 14.06% |
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%
ROICexcg growth 3Y-73.19%
ROICexcg 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-Score4
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 22.25% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 84.52 | ||
| Cash Conversion | 80.36% | ||
| Profit Quality | 79.77% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.8 |
F-Score4
WACC7.06%
ROIC/WACC1.9
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%11.35%
EPS Next Y11.11%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%5.84%
Revenue Next Year6.84%
Revenue Next 2Y7.77%
Revenue Next 3Y7.42%
Revenue Next 5Y7.02%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year45.53%
EBIT Next 3Y21.62%
EBIT Next 5Y14.88%
FCF growth 1Y-9.47%
FCF growth 3Y13.87%
FCF growth 5Y22.23%
OCF growth 1Y-6.9%
OCF growth 3Y15.47%
OCF growth 5Y20.7%