UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
22.13 EUR
+0.46 (+2.12%)
Overall UMG gets a fundamental rating of 5 out of 10. We evaluated UMG against 49 industry peers in the Entertainment industry. While UMG belongs to the best of the industry regarding profitability, 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.
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
UMG has a better Return On Assets (11.40%) than 93.88% of its industry peers.
With an excellent Return On Equity value of 42.77%, UMG belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.64%, UMG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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
The Profit Margin of UMG (17.63%) is better than 89.80% of its industry peers.
In the last couple of years the Profit Margin of UMG has grown nicely.
UMG has a better Operating Margin (15.00%) than 83.67% of its industry peers.
UMG's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 42.99%, UMG is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
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.
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
UMG has an Altman-Z score of 0.39. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
UMG's Altman-Z score of 0.39 is on the low side compared to the rest of the industry. UMG is outperformed by 69.39% of 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 71.43% of the companies in the same industry.
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 | 0.39 |
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.
With a Current ratio value of 0.63, UMG is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.60 indicates that UMG may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, UMG is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| 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.
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
UMG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.57% yearly.
Based on estimates for the next years, UMG will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y9.81%
EPS Next 2Y9.87%
EPS Next 3Y9.97%
EPS Next 5Y10.57%
Revenue Next Year5.61%
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 19.58, which indicates a rather expensive current valuation of UMG.
Compared to the rest of the industry, the Price/Earnings ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 77.55% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.26. UMG is valued slightly cheaper when compared to this.
UMG is valuated rather expensively with a Price/Forward Earnings ratio of 20.02.
71.43% 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 (23.68), we can say UMG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 20.02 |
4.2 Price Multiples
UMG's Enterprise Value to EBITDA ratio is in line with the industry average.
UMG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.1 | ||
| EV/EBITDA | 19.64 |
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
PEG (5Y)1.23
EPS Next 2Y9.87%
EPS Next 3Y9.97%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.37%.
UMG's Dividend Yield is rather good when compared to the industry average which is at 0.88. UMG pays more dividend than 91.84% of the companies in the same industry.
UMG's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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 2Y9.87%
EPS Next 3Y9.97%
AMS:UMG (12/18/2025, 7:00:00 PM)
22.13
+0.46 (+2.12%)
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 Cap40.59B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.85
Price Target29.09 (31.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)-0.31%
PT rev (3m)-0.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.78%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 20.02 | ||
| P/S | 3.43 | ||
| P/FCF | 24.1 | ||
| P/OCF | 22.93 | ||
| P/B | 8.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.64 |
EPS(TTM)1.13
EY5.11%
EPS(NY)1.11
Fwd EY5%
FCF(TTM)0.92
FCFY4.15%
OCF(TTM)0.97
OCFY4.36%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)2
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 | 0.39 |
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 2Y9.87%
EPS Next 3Y9.97%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
Revenue Next Year5.61%
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 Year40.28%
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.