UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
21.72 EUR
-0.01 (-0.05%)
We assign a fundamental rating of 5 out of 10 to UMG. UMG was compared to 49 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.
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
UMG has a better Return On Assets (11.40%) than 95.92% of its industry peers.
Looking at the Return On Equity, with a value of 42.77%, UMG belongs to the top of the industry, outperforming 95.92% of the companies in the same industry.
UMG has a Return On Invested Capital of 11.64%. This is amongst the best in the industry. UMG outperforms 87.76% 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 9.36%.
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
The Profit Margin of UMG (17.63%) is better than 91.84% of its industry peers.
In the last couple of years the Profit Margin of UMG has grown nicely.
UMG has a better Operating Margin (15.00%) than 85.71% of its industry peers.
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 65.31% 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.
The number of shares outstanding for UMG has been increased compared to 1 year ago.
The number of shares outstanding for UMG has been increased compared to 5 years ago.
UMG has a better debt/assets ratio than last year.
2.2 Solvency
UMG has an Altman-Z score of 0.39. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
UMG has a worse Altman-Z score (0.39) than 71.43% 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.
The Debt to FCF ratio of UMG (2.22) is better than 73.47% 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 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 | 0.39 |
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.
The Current ratio of UMG (0.63) is worse than 69.39% of its industry peers.
A Quick Ratio of 0.60 indicates that UMG may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, UMG is not doing good in the industry: 69.39% of the companies in the same industry are doing better.
| 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.
Measured over the past years, UMG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.91% on average per year.
UMG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.54%.
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.
The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y9.81%
EPS Next 2Y9.87%
EPS Next 3Y9.97%
EPS Next 5Y10.57%
Revenue Next Year5.61%
Revenue Next 2Y6.38%
Revenue Next 3Y6.65%
Revenue Next 5Y6.28%
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
A Price/Earnings ratio of 19.22 indicates a rather expensive valuation of UMG.
79.59% of the companies in the same industry are more expensive than UMG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.43, UMG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.64, UMG is valued on the expensive side.
UMG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UMG is cheaper than 73.47% of the companies in the same industry.
UMG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 19.64 |
4.2 Price Multiples
UMG's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, UMG is valued a bit cheaper than the industry average as 61.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.66 | ||
| EV/EBITDA | 19.69 |
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)1.96
PEG (5Y)1.21
EPS Next 2Y9.87%
EPS Next 3Y9.97%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.37%.
Compared to an average industry Dividend Yield of 0.88, UMG pays a better dividend. On top of this UMG pays more dividend than 89.80% of the companies listed in the same industry.
UMG's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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 2Y9.87%
EPS Next 3Y9.97%
AMS:UMG (12/16/2025, 7:00:00 PM)
21.72
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners35.02%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap39.84B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.85
Price Target29.09 (33.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)-0.31%
PT rev (3m)-0.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.78%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 19.64 | ||
| P/S | 3.37 | ||
| P/FCF | 23.66 | ||
| P/OCF | 22.51 | ||
| P/B | 8.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.69 |
EPS(TTM)1.13
EY5.2%
EPS(NY)1.11
Fwd EY5.09%
FCF(TTM)0.92
FCFY4.23%
OCF(TTM)0.97
OCFY4.44%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.96
PEG (5Y)1.21
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 | 0.39 |
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 2Y9.87%
EPS Next 3Y9.97%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
Revenue Next Year5.61%
Revenue Next 2Y6.38%
Revenue Next 3Y6.65%
Revenue Next 5Y6.28%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.28%
EBIT Next 3Y19.93%
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 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.
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 9.81% in the next year.