UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
21.465 EUR
+0.04 (+0.16%)
UMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 44 industry peers in the Entertainment industry. UMG has an excellent profitability rating, 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
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.
In the past 5 years UMG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.40%, UMG belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
The Return On Equity of UMG (42.77%) is better than 95.45% of its industry peers.
The Return On Invested Capital of UMG (11.64%) is better than 88.64% 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 10.17%.
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 Profit Margin of 17.63%. This is amongst the best in the industry. UMG outperforms 88.64% of its industry peers.
In the last couple of years the Profit Margin of UMG has grown nicely.
The Operating Margin of UMG (15.00%) is better than 86.36% 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 68.18% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UMG is creating value.
Compared to 1 year ago, UMG has more shares outstanding
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
Based on the Altman-Z score of 0.37, we must say that UMG is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.37, UMG is doing worse than 70.45% of the companies in the same industry.
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.
UMG has a better Debt to FCF ratio (2.22) than 72.73% of its industry peers.
UMG has a Debt/Equity ratio of 0.54. This is a neutral value indicating UMG is somewhat dependend on debt financing.
The Debt to Equity ratio of UMG (0.54) is comparable to the rest of the industry.
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 | 0.37 |
ROIC/WACC1.67
WACC6.97%
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 worse Current ratio (0.63) than 68.18% of its industry peers.
A Quick Ratio of 0.60 indicates that UMG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, UMG is doing worse than 68.18% of the companies in the same industry.
| 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.
UMG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.91% yearly.
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
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.
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 19.00, the valuation of UMG can be described as rather expensive.
UMG's Price/Earnings ratio is a bit cheaper when compared to the industry. UMG is cheaper than 79.55% of the companies in the same industry.
UMG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.31, the valuation of UMG can be described as rather expensive.
UMG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UMG is cheaper than 79.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UMG to the average of the S&P500 Index (36.20), we can say UMG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19 | ||
| Fwd PE | 19.31 |
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 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 | 23.38 | ||
| EV/EBITDA | 19.44 |
4.3 Compensation for Growth
UMG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
UMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)1.19
EPS Next 2Y10.16%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.36%.
Compared to an average industry Dividend Yield of 2.36, UMG pays a better dividend. On top of this UMG pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, UMG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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 2Y10.16%
EPS Next 3Y10.21%
AMS:UMG (12/4/2025, 4:54:16 PM)
21.465
+0.04 (+0.16%)
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 Cap39.37B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.85
Price Target29.09 (35.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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 | ||
| Fwd PE | 19.31 | ||
| P/S | 3.33 | ||
| P/FCF | 23.38 | ||
| P/OCF | 22.24 | ||
| P/B | 8.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.44 |
EPS(TTM)1.13
EY5.26%
EPS(NY)1.11
Fwd EY5.18%
FCF(TTM)0.92
FCFY4.28%
OCF(TTM)0.97
OCFY4.5%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.78
PEG (5Y)1.19
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 | 0.37 |
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 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.