Logo image of UMG.AS

UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis

AMS:UMG - Euronext Amsterdam - NL0015000IY2 - Common Stock - Currency: EUR

27.61  +1.63 (+6.27%)

Fundamental Rating

4

Taking everything into account, UMG scores 4 out of 10 in our fundamental rating. UMG was compared to 46 industry peers in the Entertainment industry. While UMG is still in line with the averages on profitability rating, there are concerns on its financial health. UMG is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

6

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.
In the past 5 years UMG always reported a positive cash flow from operatings.
UMG.AS Yearly Net Income VS EBIT VS OCF VS FCFUMG.AS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

1.2 Ratios

With an excellent Return On Assets value of 8.30%, UMG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
The Return On Equity of UMG (36.72%) is better than 95.65% of its industry peers.
With an excellent Return On Invested Capital value of 14.25%, UMG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
Industry RankSector Rank
ROA 8.3%
ROE 36.72%
ROIC 14.25%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
UMG.AS Yearly ROA, ROE, ROICUMG.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 20 40 60 80

1.3 Margins

UMG's Profit Margin of 11.33% is amongst the best of the industry. UMG outperforms 80.43% of its industry peers.
In the last couple of years the Profit Margin of UMG has declined.
UMG has a Operating Margin of 12.77%. This is amongst the best in the industry. UMG outperforms 80.43% of its industry peers.
In the last couple of years the Operating Margin of UMG has declined.
UMG's Gross Margin of 44.11% is in line compared to the rest of the industry. UMG outperforms 41.30% of its industry peers.
In the last couple of years the Gross Margin of UMG has declined.
Industry RankSector Rank
OM 12.77%
PM (TTM) 11.33%
GM 44.11%
OM growth 3Y-8.78%
OM growth 5Y-2.01%
PM growth 3Y-14.88%
PM growth 5Y-5.31%
GM growth 3Y-2.3%
GM growth 5Y-1.82%
UMG.AS Yearly Profit, Operating, Gross MarginsUMG.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 10 20 30 40

More info and screens

3

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.
UMG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
UMG.AS Yearly Shares OutstandingUMG.AS Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 500M 1B 1.5B
UMG.AS Yearly Total Debt VS Total AssetsUMG.AS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

UMG has an Altman-Z score of 0.63. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.63, UMG is in line with its industry, outperforming 50.00% of the companies in the same industry.
UMG has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as UMG would need 2.29 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.29, UMG is doing good in the industry, outperforming 78.26% of the companies in the same industry.
UMG has a Debt/Equity ratio of 0.68. This is a neutral value indicating UMG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, UMG is in line with its industry, outperforming 52.17% of the companies in the same 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 RankSector Rank
Debt/Equity 0.68
Debt/FCF 2.29
Altman-Z 0.63
ROIC/WACC1.98
WACC7.2%
UMG.AS Yearly LT Debt VS Equity VS FCFUMG.AS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

UMG has a Current Ratio of 0.58. This is a bad value and indicates that UMG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of UMG (0.58) is worse than 69.57% of its industry peers.
A Quick Ratio of 0.55 indicates that UMG may have some problems paying its short term obligations.
UMG has a worse Quick ratio (0.55) than 69.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.58
Quick Ratio 0.55
UMG.AS Yearly Current Assets VS Current LiabilitesUMG.AS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2B 4B 6B

More info and screens

5

3. Growth

3.1 Past

UMG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.95%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.88% on average over the past years.
UMG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.43%.
The Revenue has been growing by 13.02% on average over the past years. This is quite good.
EPS 1Y (TTM)58.95%
EPS 3Y-3.05%
EPS 5Y6.88%
EPS Q2Q%7.32%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y14.33%
Revenue growth 5Y13.02%
Sales Q2Q%7.34%

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 10.66% on average per year.
Based on estimates for the next years, UMG will show a small growth in Revenue. The Revenue will grow by 7.24% on average per year.
EPS Next Y8.35%
EPS Next 2Y10.06%
EPS Next 3Y11.27%
EPS Next 5Y10.66%
Revenue Next Year6.9%
Revenue Next 2Y7.41%
Revenue Next 3Y7.59%
Revenue Next 5Y7.24%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.
UMG.AS Yearly Revenue VS EstimatesUMG.AS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
UMG.AS Yearly EPS VS EstimatesUMG.AS Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 40.60 indicates a quite expensive 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 71.74% of the companies listed in the same industry.
UMG is valuated rather expensively when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.91, which means the current valuation is very expensive for UMG.
Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of UMG to the average of the S&P500 Index (22.10), we can say UMG is valued slightly more expensively.
Industry RankSector Rank
PE 40.6
Fwd PE 26.91
UMG.AS Price Earnings VS Forward Price EarningsUMG.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as UMG.
UMG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UMG is cheaper than 67.39% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.09
EV/EBITDA 29.78
UMG.AS Per share dataUMG.AS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

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 decent profitability rating of UMG may justify a higher PE ratio.
PEG (NY)4.87
PEG (5Y)5.9
EPS Next 2Y10.06%
EPS Next 3Y11.27%

More info and screens

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.96%, 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 2.62. UMG pays more dividend than 93.48% of the companies in the same industry.
UMG's Dividend Yield is comparable with the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 1.96%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years3
UMG.AS Yearly Dividends per shareUMG.AS Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

UMG pays out 73.95% of its income as dividend. This is not a sustainable payout ratio.
DP73.95%
EPS Next 2Y10.06%
EPS Next 3Y11.27%
UMG.AS Yearly Income VS Free CF VS DividendUMG.AS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2018 2019 2020 2021 2022 2023 500M 1B 1.5B
UMG.AS Dividend Payout.UMG.AS Dividend Payout, showing the Payout Ratio.UMG.AS Dividend Payout.PayoutRetained Earnings

More info and screens

UNIVERSAL MUSIC GROUP NV

AMS:UMG (3/7/2025, 7:00:00 PM)

27.61

+1.63 (+6.27%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)03-06 2025-03-06/amc
Earnings (Next)04-30 2025-04-30
Inst Owners28.41%
Inst Owner ChangeN/A
Ins Owners17.88%
Ins Owner ChangeN/A
Market Cap50.51B
Analysts72.31
Price Target27.68 (0.25%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.96%
Yearly Dividend0.44
Dividend Growth(5Y)N/A
DP73.95%
Div Incr Years2
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)3.19%
PT rev (3m)2.35%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.32%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.15%
Valuation
Industry RankSector Rank
PE 40.6
Fwd PE 26.91
P/S 4.55
P/FCF 32.09
P/OCF 31.04
P/B 14.73
P/tB N/A
EV/EBITDA 29.78
EPS(TTM)0.68
EY2.46%
EPS(NY)1.03
Fwd EY3.72%
FCF(TTM)0.86
FCFY3.12%
OCF(TTM)0.89
OCFY3.22%
SpS6.07
BVpS1.87
TBVpS-1.86
PEG (NY)4.87
PEG (5Y)5.9
Profitability
Industry RankSector Rank
ROA 8.3%
ROE 36.72%
ROCE 17.8%
ROIC 14.25%
ROICexc 15.12%
ROICexgc 162.44%
OM 12.77%
PM (TTM) 11.33%
GM 44.11%
FCFM 14.17%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-8.78%
OM growth 5Y-2.01%
PM growth 3Y-14.88%
PM growth 5Y-5.31%
GM growth 3Y-2.3%
GM growth 5Y-1.82%
F-Score5
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 2.29
Debt/EBITDA 1.29
Cap/Depr 13.87%
Cap/Sales 0.48%
Interest Coverage 83.41
Cash Conversion 90.39%
Profit Quality 125.02%
Current Ratio 0.58
Quick Ratio 0.55
Altman-Z 0.63
F-Score5
WACC7.2%
ROIC/WACC1.98
Cap/Depr(3y)8.58%
Cap/Depr(5y)15.03%
Cap/Sales(3y)0.3%
Cap/Sales(5y)0.47%
Profit Quality(3y)163.48%
Profit Quality(5y)123.78%
High Growth Momentum
Growth
EPS 1Y (TTM)58.95%
EPS 3Y-3.05%
EPS 5Y6.88%
EPS Q2Q%7.32%
EPS Next Y8.35%
EPS Next 2Y10.06%
EPS Next 3Y11.27%
EPS Next 5Y10.66%
Revenue 1Y (TTM)7.43%
Revenue growth 3Y14.33%
Revenue growth 5Y13.02%
Sales Q2Q%7.34%
Revenue Next Year6.9%
Revenue Next 2Y7.41%
Revenue Next 3Y7.59%
Revenue Next 5Y7.24%
EBIT growth 1Y-11.37%
EBIT growth 3Y4.29%
EBIT growth 5Y10.75%
EBIT Next Year52.71%
EBIT Next 3Y23.89%
EBIT Next 5Y17.3%
FCF growth 1Y26.63%
FCF growth 3Y27.01%
FCF growth 5Y23.61%
OCF growth 1Y28.92%
OCF growth 3Y26.74%
OCF growth 5Y20.34%