UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
22.08 EUR
+0.05 (+0.23%)
We assign a fundamental rating of 5 out of 10 to UMG. UMG was compared to 44 industry peers in the Entertainment industry. UMG has an excellent profitability rating, but there are concerns on its financial health. UMG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year UMG was profitable.
UMG had a positive operating cash flow in the past year.
In the past 5 years UMG has always been profitable.
Each year in the past 5 years UMG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.40%, UMG belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
UMG has a better Return On Equity (42.77%) than 95.45% of its industry peers.
UMG has a Return On Invested Capital of 11.64%. This is amongst the best in the industry. UMG outperforms 86.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UMG is significantly above the industry average of 10.01%.
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 86.36% of its industry peers.
UMG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.00%, UMG belongs to the best of the industry, outperforming 84.09% 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 42.99%, UMG is doing worse than 65.91% of the companies in the same industry.
UMG's Gross Margin has declined in the last couple of years.
| 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.
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.
The debt/assets ratio for UMG has been reduced compared to a year ago.
2.2 Solvency
UMG has an Altman-Z score of 0.42. 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 of 0.42. This is in the lower half of the industry: UMG underperforms 65.91% 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.
UMG's Debt to FCF ratio of 2.22 is fine compared to the rest of the industry. UMG outperforms 72.73% 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 of 0.54. This is comparable to the rest of the industry: UMG outperforms 56.82% of 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 | 0.42 |
ROIC/WACC1.67
WACC6.98%
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 has a Current ratio of 0.63. This is in the lower half of the industry: UMG underperforms 65.91% 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 65.91% 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 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.
Looking at the last year, UMG shows a small growth in Revenue. The Revenue has grown by 6.54% in the last year.
The Revenue has been growing by 10.57% on average over the past years. This is quite good.
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
Based on estimates for the next years, UMG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.57% on average per year.
UMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y10.68%
EPS Next 2Y10.16%
EPS Next 3Y10.21%
EPS Next 5Y10.57%
Revenue Next Year5.5%
Revenue Next 2Y6.09%
Revenue Next 3Y6.47%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.54, which indicates a rather expensive current valuation of UMG.
Based on the Price/Earnings ratio, UMG is valued a bit cheaper than the industry average as 79.55% of the companies are valued more expensively.
UMG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.86, UMG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
UMG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 19.86 |
4.2 Price Multiples
UMG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 61.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.05 | ||
| EV/EBITDA | 19.95 |
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)1.83
PEG (5Y)1.23
EPS Next 2Y10.16%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.34, UMG pays a better dividend. On top of this UMG pays more dividend than 90.91% of the companies listed in the same industry.
UMG's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
44.87% of the earnings are spent on dividend by UMG. This is a bit on the high side, but may be sustainable.
DP44.87%
EPS Next 2Y10.16%
EPS Next 3Y10.21%
AMS:UMG (11/28/2025, 10:06:17 AM)
22.08
+0.05 (+0.23%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners34.96%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap40.50B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.85
Price Target29.09 (31.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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)-0.86%
PT rev (3m)-0.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 19.86 | ||
| P/S | 3.42 | ||
| P/FCF | 24.05 | ||
| P/OCF | 22.88 | ||
| P/B | 8.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.95 |
EPS(TTM)1.13
EY5.12%
EPS(NY)1.11
Fwd EY5.03%
FCF(TTM)0.92
FCFY4.16%
OCF(TTM)0.97
OCFY4.37%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.83
PEG (5Y)1.23
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 | 0.42 |
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 Y10.68%
EPS Next 2Y10.16%
EPS Next 3Y10.21%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
Revenue Next Year5.5%
Revenue Next 2Y6.09%
Revenue Next 3Y6.47%
Revenue Next 5Y6.28%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.89%
EBIT Next 3Y20.25%
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 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 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 10.68% in the next year.