UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
21.88 EUR
-0.07 (-0.32%)
Taking everything into account, UMG scores 5 out of 10 in our fundamental rating. UMG was compared to 48 industry peers in the Entertainment industry. UMG scores excellent on profitability, 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.
- 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 11.40%, UMG belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
- The Return On Equity of UMG (42.77%) is better than 95.83% of its industry peers.
- UMG has a better Return On Invested Capital (11.64%) than 87.50% 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
- UMG has a better Profit Margin (17.63%) than 91.67% of its industry peers.
- UMG's Profit Margin has improved in the last couple of years.
- UMG has a better Operating Margin (15.00%) than 89.58% of its industry peers.
- UMG's Operating Margin has been stable in the last couple of years.
- UMG has a worse Gross Margin (42.99%) than 60.42% 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
- 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
- UMG has more shares outstanding than it did 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.
- With a Altman-Z score value of 0.40, UMG is not doing good in the industry: 70.83% 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.
- UMG has a better Debt to FCF ratio (2.22) than 75.00% of its industry peers.
- A Debt/Equity ratio of 0.54 indicates that UMG is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.54, UMG is doing good in the industry, outperforming 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 0.4 |
ROIC/WACC1.67
WACC6.98%
2.3 Liquidity
- A Current Ratio of 0.63 indicates that UMG may have some problems paying its short term obligations.
- UMG has a Current ratio of 0.63. This is in the lower half of the industry: UMG underperforms 64.58% 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 Quick ratio of 0.60. This is in the lower half of the industry: UMG underperforms 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 66.18% over the past year.
- 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.
- The Revenue has been growing slightly by 6.54% in the past year.
- 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
- The Earnings Per Share is expected to grow by 10.57% 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 5.97% on average per year.
EPS Next Y9.81%
EPS Next 2Y9.92%
EPS Next 3Y9.96%
EPS Next 5Y10.57%
Revenue Next Year5.59%
Revenue Next 2Y6.38%
Revenue Next 3Y6.65%
Revenue Next 5Y5.97%
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.
- 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
- The Price/Earnings ratio is 19.36, which indicates a rather expensive current valuation of UMG.
- Based on the Price/Earnings ratio, UMG is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- UMG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.54.
- The Price/Forward Earnings ratio is 19.77, which indicates a rather expensive current valuation of UMG.
- Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than 75.00% of the companies in the same industry.
- UMG's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.36 | ||
| Fwd PE | 19.77 |
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 60.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.83 | ||
| EV/EBITDA | 19.82 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- UMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.97
PEG (5Y)1.22
EPS Next 2Y9.92%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
- UMG has a Yearly Dividend Yield of 2.45%. 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 0.93. UMG pays more dividend than 89.58% of the companies in the same industry.
- UMG's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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 2Y9.92%
EPS Next 3Y9.96%
AMS:UMG (1/15/2026, 7:00:00 PM)
21.88
-0.07 (-0.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-30 2025-10-30
Earnings (Next)03-04 2026-03-04/amc
Inst Owners35.41%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap40.13B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.08
Price Target28.77 (31.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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)-1.11%
PT rev (3m)-1.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.36 | ||
| Fwd PE | 19.77 | ||
| P/S | 3.39 | ||
| P/FCF | 23.83 | ||
| P/OCF | 22.67 | ||
| P/B | 8.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.82 |
EPS(TTM)1.13
EY5.16%
EPS(NY)1.11
Fwd EY5.06%
FCF(TTM)0.92
FCFY4.2%
OCF(TTM)0.97
OCFY4.41%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.97
PEG (5Y)1.22
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 Y9.81%
EPS Next 2Y9.92%
EPS Next 3Y9.96%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
Revenue Next Year5.59%
Revenue Next 2Y6.38%
Revenue Next 3Y6.65%
Revenue Next 5Y5.97%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.22%
EBIT Next 3Y19.93%
EBIT Next 5Y13.59%
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.
What is the valuation status of UNIVERSAL MUSIC GROUP NV (UMG.AS) stock?
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.
Can you provide the PE and PB ratios for UMG stock?
The Price/Earnings (PE) ratio for UNIVERSAL MUSIC GROUP NV (UMG.AS) is 19.36 and the Price/Book (PB) ratio is 8.23.
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 44.87%.