UNIVERSAL MUSIC GROUP NV (UMG.AS) Fundamental Analysis & Valuation

AMS:UMG • NL0015000IY2

Current stock price

15.55 EUR
-0.02 (-0.16%)
Last:

This UMG.AS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. UMG.AS Profitability Analysis

1.1 Basic Checks

  • In the past year UMG was profitable.
  • UMG had a positive operating cash flow in the past year.
  • Each year in the past 5 years UMG has been profitable.
  • In the past 5 years UMG always reported a positive cash flow from operatings.
UMG.AS Yearly Net Income VS EBIT VS OCF VS FCFUMG.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 8.38%, UMG belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
  • With an excellent Return On Equity value of 31.43%, UMG belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
  • The Return On Invested Capital of UMG (13.14%) is better than 84.44% of its industry peers.
Industry RankSector Rank
ROA 8.38%
ROE 31.43%
ROIC 13.14%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
UMG.AS Yearly ROA, ROE, ROICUMG.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

1.3 Margins

  • Looking at the Profit Margin, with a value of 12.26%, UMG is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
  • In the last couple of years the Profit Margin of UMG has declined.
  • Looking at the Operating Margin, with a value of 15.98%, UMG belongs to the top of the industry, outperforming 88.89% 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 42.46% is in line compared to the rest of the industry. UMG outperforms 42.22% of its industry peers.
  • UMG's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 15.98%
PM (TTM) 12.26%
GM 42.46%
OM growth 3Y1.07%
OM growth 5Y-1.02%
PM growth 3Y17.46%
PM growth 5Y-7.78%
GM growth 3Y-1.45%
GM growth 5Y-2.13%
UMG.AS Yearly Profit, Operating, Gross MarginsUMG.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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4

2. UMG.AS Health Analysis

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
UMG.AS Yearly Shares OutstandingUMG.AS Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
UMG.AS Yearly Total Debt VS Total AssetsUMG.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

  • UMG has an Altman-Z score of -0.04. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of -0.04, UMG is doing worse than 68.89% of the companies in the same industry.
  • The Debt to FCF ratio of UMG is 2.24, which is a good value as it means it would take UMG, 2.24 years of fcf income to pay off all of its debts.
  • UMG's Debt to FCF ratio of 2.24 is amongst the best of the industry. UMG outperforms 82.22% of its industry peers.
  • 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's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.54
Debt/FCF 2.24
Altman-Z -0.04
ROIC/WACC1.85
WACC7.09%
UMG.AS Yearly LT Debt VS Equity VS FCFUMG.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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 60.00% of its industry peers.
  • A Quick Ratio of 0.60 indicates that UMG may have some problems paying its short term obligations.
  • UMG has a worse Quick ratio (0.60) than 60.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.63
Quick Ratio 0.6
UMG.AS Yearly Current Assets VS Current LiabilitesUMG.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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5

3. UMG.AS Growth Analysis

3.1 Past

  • UMG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.29%.
  • UMG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.05% yearly.
  • The Revenue has been growing slightly by 5.69% in the past year.
  • UMG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.97% yearly.
EPS 1Y (TTM)7.29%
EPS 3Y24.51%
EPS 5Y2.05%
EPS Q2Q%5.77%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y6.55%
Revenue growth 5Y10.97%
Sales Q2Q%5.04%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
  • Based on estimates for the next years, UMG will show a small growth in Revenue. The Revenue will grow by 6.65% on average per year.
EPS Next Y7.28%
EPS Next 2Y8.92%
EPS Next 3Y6.3%
EPS Next 5Y9.47%
Revenue Next Year7.35%
Revenue Next 2Y7.19%
Revenue Next 3Y6.84%
Revenue Next 5Y6.65%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.
UMG.AS Yearly Revenue VS EstimatesUMG.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
UMG.AS Yearly EPS VS EstimatesUMG.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

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5

4. UMG.AS Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 15.10, the valuation of UMG can be described as correct.
  • Based on the Price/Earnings ratio, UMG is valued cheaper than 88.89% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, UMG is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 14.11, UMG is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 80.00% of the companies listed in the same industry.
  • UMG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.1
Fwd PE 14.11
UMG.AS Price Earnings VS Forward Price EarningsUMG.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, UMG is valued a bit cheaper than 75.56% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.09
EV/EBITDA N/A
UMG.AS Per share dataUMG.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)7.37
EPS Next 2Y8.92%
EPS Next 3Y6.3%

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4

5. UMG.AS Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.21%, UMG has a reasonable but not impressive dividend return.
  • In the last 3 months the price of UMG has falen by -29.30%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 1.06, 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 1.90, UMG pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.21%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
UMG.AS Yearly Dividends per shareUMG.AS Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • 62.17% of the earnings are spent on dividend by UMG. This is not a sustainable payout ratio.
DP62.17%
EPS Next 2Y8.92%
EPS Next 3Y6.3%
UMG.AS Yearly Income VS Free CF VS DividendUMG.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
UMG.AS Dividend Payout.UMG.AS Dividend Payout, showing the Payout Ratio.UMG.AS Dividend Payout.PayoutRetained Earnings

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UMG.AS Fundamentals: All Metrics, Ratios and Statistics

UNIVERSAL MUSIC GROUP NV

AMS:UMG (3/27/2026, 10:47:19 AM)

15.55

-0.02 (-0.16%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)03-05
Earnings (Next)04-27
Inst Owners37.86%
Inst Owner ChangeN/A
Ins Owners18.51%
Ins Owner ChangeN/A
Market Cap28.52B
Revenue(TTM)12.51B
Net Income(TTM)1.53B
Analysts76.3
Price Target28.28 (81.86%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.21%
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP62.17%
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)-0.89%
PT rev (3m)-1.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.05%
Valuation
Industry RankSector Rank
PE 15.1
Fwd PE 14.11
P/S 2.28
P/FCF 17.09
P/OCF 16.4
P/B 5.85
P/tB N/A
EV/EBITDA N/A
EPS(TTM)1.03
EY6.62%
EPS(NY)1.1
Fwd EY7.09%
FCF(TTM)0.91
FCFY5.85%
OCF(TTM)0.95
OCFY6.1%
SpS6.82
BVpS2.66
TBVpS-1.16
PEG (NY)2.07
PEG (5Y)7.37
Graham Number7.85
Profitability
Industry RankSector Rank
ROA 8.38%
ROE 31.43%
ROCE 17.96%
ROIC 13.14%
ROICexc 13.79%
ROICexgc 40.4%
OM 15.98%
PM (TTM) 12.26%
GM 42.46%
FCFM 13.34%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.07%
OM growth 5Y-1.02%
PM growth 3Y17.46%
PM growth 5Y-7.78%
GM growth 3Y-1.45%
GM growth 5Y-2.13%
F-Score5
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 2.24
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 0.56%
Interest Coverage 95.14
Cash Conversion N/A
Profit Quality 108.87%
Current Ratio 0.63
Quick Ratio 0.6
Altman-Z -0.04
F-Score5
WACC7.09%
ROIC/WACC1.85
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.58%
Cap/Sales(5y)0.44%
Profit Quality(3y)111.54%
Profit Quality(5y)135.82%
High Growth Momentum
Growth
EPS 1Y (TTM)7.29%
EPS 3Y24.51%
EPS 5Y2.05%
EPS Q2Q%5.77%
EPS Next Y7.28%
EPS Next 2Y8.92%
EPS Next 3Y6.3%
EPS Next 5Y9.47%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y6.55%
Revenue growth 5Y10.97%
Sales Q2Q%5.04%
Revenue Next Year7.35%
Revenue Next 2Y7.19%
Revenue Next 3Y6.84%
Revenue Next 5Y6.65%
EBIT growth 1Y12.56%
EBIT growth 3Y7.69%
EBIT growth 5Y9.83%
EBIT Next Year39.63%
EBIT Next 3Y18.83%
EBIT Next 5Y15.03%
FCF growth 1Y0.3%
FCF growth 3Y-0.59%
FCF growth 5Y13.22%
OCF growth 1Y-0.91%
OCF growth 3Y0.13%
OCF growth 5Y13.43%

UNIVERSAL MUSIC GROUP NV / UMG.AS Fundamental Analysis 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 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 6 / 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 15.1 and the Price/Book (PB) ratio is 5.85.


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 62.17%.