UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
22.03 EUR
+0.13 (+0.59%)
We assign a fundamental rating of 5 out of 10 to UMG. UMG was compared to 44 industry peers in the Entertainment industry. UMG scores excellent on profitability, 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.
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
UMG's Return On Assets of 11.40% is amongst the best of the industry. UMG outperforms 94.12% of its industry peers.
UMG has a Return On Equity of 42.77%. This is amongst the best in the industry. UMG outperforms 94.12% of its industry peers.
The Return On Invested Capital of UMG (11.64%) is better than 86.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UMG is significantly above the industry average of 9.87%.
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
With an excellent Profit Margin value of 17.63%, UMG belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
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 82.35% of the companies in the same industry.
In the last couple of years the Operating Margin of UMG has remained more or less at the same level.
UMG has a worse Gross Margin (42.99%) than 68.63% 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
Compared to 5 years ago, UMG has more shares outstanding
Compared to 1 year ago, UMG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.42, we must say that UMG is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.42, UMG is not doing good in the industry: 72.55% 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.
The Debt to FCF ratio of UMG (2.22) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that UMG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, UMG is in line with its industry, outperforming 52.94% of the companies in the same industry.
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's Current ratio of 0.63 is on the low side compared to the rest of the industry. UMG is outperformed by 72.55% of its industry peers.
UMG has a Quick 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 Quick ratio (0.60) than 72.55% 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.
The Earnings Per Share has been growing by 15.91% on average over the past years. This is quite good.
UMG shows a small growth in Revenue. In the last year, the Revenue has grown by 6.54%.
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 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 5Y6.28%
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 19.50, which indicates a rather expensive current valuation of UMG.
Based on the Price/Earnings ratio, UMG is valued a bit cheaper than 78.43% of the companies in the same industry.
UMG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.91 indicates a rather expensive valuation of UMG.
72.55% of the companies in the same industry are more expensive than UMG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UMG to the average of the S&P500 Index (23.46), we can say UMG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
UMG's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as UMG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.99 | ||
| 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)1.99
PEG (5Y)1.23
EPS Next 2Y9.92%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, UMG has a reasonable but not impressive dividend return.
UMG's Dividend Yield is rather good when compared to the industry average which is at 0.98. UMG pays more dividend than 92.16% of the companies in the same industry.
UMG's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| 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
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 2Y9.92%
EPS Next 3Y9.96%
AMS:UMG (12/24/2025, 7:00:00 PM)
22.03
+0.13 (+0.59%)
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 Cap40.41B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.85
Price Target28.77 (30.59%)
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)-1.11%
PT rev (3m)-1.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.78%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 19.91 | ||
| P/S | 3.41 | ||
| P/FCF | 23.99 | ||
| P/OCF | 22.83 | ||
| P/B | 8.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.95 |
EPS(TTM)1.13
EY5.13%
EPS(NY)1.11
Fwd EY5.02%
FCF(TTM)0.92
FCFY4.17%
OCF(TTM)0.97
OCFY4.38%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.99
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 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 5Y6.28%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.22%
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.