UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - AMS:UMG - NL0015000IY2 - Common Stock
24.35 EUR
-0.25 (-1.02%)
Overall UMG gets a fundamental rating of 5 out of 10. We evaluated UMG against 46 industry peers in the Entertainment industry. UMG scores excellent on profitability, but 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
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.
In the past 5 years UMG always reported a positive cash flow from operatings.
1.2 Ratios
UMG has a better Return On Assets (14.23%) than 93.48% of its industry peers.
The Return On Equity of UMG (53.39%) is better than 93.48% of its industry peers.
UMG has a Return On Invested Capital of 12.89%. This is amongst the best in the industry. UMG outperforms 86.96% 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 10.51%.
The last Return On Invested Capital (12.89%) 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 | 14.23% | ||
| ROE | 53.39% | ||
| ROIC | 12.89% |
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
Looking at the Profit Margin, with a value of 21.36%, UMG belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
In the last couple of years the Profit Margin of UMG has grown nicely.
With an excellent Operating Margin value of 16.13%, UMG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
UMG's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 42.78%, UMG is doing worse than 65.22% of the companies in the same industry.
In the last couple of years the Gross Margin of UMG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.13% | ||
| PM (TTM) | 21.36% | ||
| GM | 42.78% |
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.
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
UMG has an Altman-Z score of 0.68. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
UMG has a Altman-Z score (0.68) which is in line with 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 71.74% 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 of 0.54. This is comparable to the rest of the industry: UMG outperforms 52.17% of its industry peers.
Even though the debt/equity ratio score it not favorable for UMG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 0.68 |
ROIC/WACC1.84
WACC6.99%
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's Current ratio of 0.63 is on the low side compared to the rest of the industry. UMG is outperformed by 69.57% 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 69.57% 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 10.25%, which is quite good.
UMG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.91% yearly.
Looking at the last year, UMG shows a small growth in Revenue. The Revenue has grown by 6.12% in the last 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)10.25%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%9.09%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%6.42%
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 6.19% on average over the next years.
EPS Next Y11.71%
EPS Next 2Y11.33%
EPS Next 3Y10.68%
EPS Next 5Y10.57%
Revenue Next Year5.28%
Revenue Next 2Y6.67%
Revenue Next 3Y6.72%
Revenue Next 5Y6.19%
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
Based on the Price/Earnings ratio of 24.35, the valuation of UMG can be described as rather expensive.
78.26% of the companies in the same industry are more expensive than UMG, based on the Price/Earnings ratio.
UMG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.45, the valuation of UMG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than 69.57% 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 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 21.45 |
4.2 Price Multiples
UMG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UMG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.52 | ||
| EV/EBITDA | 20.33 |
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)2.08
PEG (5Y)1.53
EPS Next 2Y11.33%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.11%.
Compared to an average industry Dividend Yield of 1.96, UMG pays a better dividend. On top of this UMG pays more dividend than 93.48% of the companies listed in the same industry.
UMG's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
35.94% of the earnings are spent on dividend by UMG. This is a low number and sustainable payout ratio.
DP35.94%
EPS Next 2Y11.33%
EPS Next 3Y10.68%
AMS:UMG (9/17/2025, 5:36:15 PM)
24.35
-0.25 (-1.02%)
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 Cap44.66B
Analysts72.31
Price Target29.34 (20.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP35.94%
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)0.46%
PT rev (3m)0.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.54%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.27%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.35 | ||
| Fwd PE | 21.45 | ||
| P/S | 3.66 | ||
| P/FCF | 26.52 | ||
| P/OCF | 25.23 | ||
| P/B | 9.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.33 |
EPS(TTM)1
EY4.11%
EPS(NY)1.14
Fwd EY4.66%
FCF(TTM)0.92
FCFY3.77%
OCF(TTM)0.97
OCFY3.96%
SpS6.65
BVpS2.66
TBVpS-1.16
PEG (NY)2.08
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 53.39% | ||
| ROCE | 17.67% | ||
| ROIC | 12.89% | ||
| ROICexc | 13.53% | ||
| ROICexgc | 39.64% | ||
| OM | 16.13% | ||
| PM (TTM) | 21.36% | ||
| GM | 42.78% | ||
| FCFM | 13.82% |
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-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 21.03% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 89.36 | ||
| Cash Conversion | 74.53% | ||
| Profit Quality | 64.67% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.68 |
F-Score5
WACC6.99%
ROIC/WACC1.84
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)10.25%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%9.09%
EPS Next Y11.71%
EPS Next 2Y11.33%
EPS Next 3Y10.68%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%6.42%
Revenue Next Year5.28%
Revenue Next 2Y6.67%
Revenue Next 3Y6.72%
Revenue Next 5Y6.19%
EBIT growth 1Y24.19%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year45.53%
EBIT Next 3Y21.62%
EBIT Next 5Y13.86%
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%