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

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

26.68  -0.06 (-0.22%)

Fundamental Rating

5

UMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 industry peers in the Entertainment industry. While UMG has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, UMG is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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8

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.
In the past 5 years UMG has always been profitable.
Each year in the past 5 years UMG had a positive operating cash flow.
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 2024 500M 1B 1.5B 2B

1.2 Ratios

With an excellent Return On Assets value of 12.04%, UMG belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
UMG has a Return On Equity of 46.09%. This is amongst the best in the industry. UMG outperforms 95.92% of its industry peers.
UMG's Return On Invested Capital of 13.38% is amongst the best of the industry. UMG outperforms 85.71% of its industry peers.
UMG had an Average Return On Invested Capital over the past 3 years of 17.13%. This is significantly above the industry average of 9.22%.
Industry RankSector Rank
ROA 12.04%
ROE 46.09%
ROIC 13.38%
ROA(3y)9.46%
ROA(5y)9.51%
ROE(3y)40.62%
ROE(5y)49.82%
ROIC(3y)17.13%
ROIC(5y)16.12%
UMG.AS Yearly ROA, ROE, ROICUMG.AS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

1.3 Margins

UMG's Profit Margin of 17.63% is amongst the best of the industry. UMG outperforms 87.76% of its industry peers.
In the last couple of years the Profit Margin of UMG has grown nicely.
With an excellent Operating Margin value of 15.00%, UMG belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
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: 63.27% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of UMG has declined.
Industry RankSector 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%
UMG.AS Yearly Profit, Operating, Gross MarginsUMG.AS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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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.
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.
UMG.AS Yearly Shares OutstandingUMG.AS Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 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 2023 2024 5B 10B 15B

2.2 Solvency

Based on the Altman-Z score of 0.78, we must say that UMG is in the distress zone and has some risk of bankruptcy.
UMG has a Altman-Z score (0.78) which is in line with its industry peers.
UMG has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.92, UMG is doing good in the industry, outperforming 75.51% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that UMG is not too dependend on debt financing.
The Debt to Equity ratio of UMG (0.50) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.92
Altman-Z 0.78
ROIC/WACC1.9
WACC7.06%
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 2024 1B 2B 3B 4B

2.3 Liquidity

UMG has a Current Ratio of 0.60. 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 0.60 is on the low side compared to the rest of the industry. UMG is outperformed by 73.47% of its industry peers.
UMG has a Quick Ratio of 0.60. 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 Quick ratio of 0.57 is on the low side compared to the rest of the industry. UMG is outperformed by 73.47% of its industry peers.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.57
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 2023 2024 2B 4B 6B

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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 66.18%, which is quite impressive.
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.
UMG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.57% yearly.
EPS 1Y (TTM)66.18%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%11.35%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%5.84%

3.2 Future

The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.02% on average over the next years.
EPS Next Y11.11%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
EPS Next 5Y10.57%
Revenue Next Year6.84%
Revenue Next 2Y7.77%
Revenue Next 3Y7.42%
Revenue Next 5Y7.02%

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.
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 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.61, which indicates a rather expensive current valuation of UMG.
Based on the Price/Earnings ratio, UMG is valued cheaper than 81.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of UMG to the average of the S&P500 Index (27.30), we can say UMG is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.22, the valuation of UMG can be described as expensive.
Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than 67.35% of the companies in the same industry.
UMG's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.76.
Industry RankSector Rank
PE 23.61
Fwd PE 26.22
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

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UMG is on the same level as its industry peers.
UMG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 29.41
EV/EBITDA 23.64
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 UMG does not grow enough to justify the current Price/Earnings ratio.
UMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.13
PEG (5Y)1.48
EPS Next 2Y12.83%
EPS Next 3Y10.32%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.93%, 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 2.18. UMG pays more dividend than 93.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, UMG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.93%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
UMG.AS Yearly Dividends per shareUMG.AS Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

UMG pays out 44.73% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.73%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
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 2024 500M 1B 1.5B 2B
UMG.AS Dividend Payout.UMG.AS Dividend Payout, showing the Payout Ratio.UMG.AS Dividend Payout.PayoutRetained Earnings

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UNIVERSAL MUSIC GROUP NV

AMS:UMG (7/11/2025, 7:00:00 PM)

26.68

-0.06 (-0.22%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)04-29 2025-04-29
Earnings (Next)07-31 2025-07-31
Inst Owners29.46%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap48.93B
Analysts73.33
Price Target29.42 (10.27%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.93%
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP44.73%
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)0.83%
PT rev (3m)0.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
Industry RankSector Rank
PE 23.61
Fwd PE 26.22
P/S 4.14
P/FCF 29.41
P/OCF 27.88
P/B 10.81
P/tB N/A
EV/EBITDA 23.64
EPS(TTM)1.13
EY4.24%
EPS(NY)1.02
Fwd EY3.81%
FCF(TTM)0.91
FCFY3.4%
OCF(TTM)0.96
OCFY3.59%
SpS6.45
BVpS2.47
TBVpS-1.68
PEG (NY)2.13
PEG (5Y)1.48
Profitability
Industry RankSector Rank
ROA 12.04%
ROE 46.09%
ROCE 18.31%
ROIC 13.38%
ROICexc 14.23%
ROICexgc 85.47%
OM 15%
PM (TTM) 17.63%
GM 42.99%
FCFM 14.06%
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%
ROICexcg growth 3Y-73.19%
ROICexcg 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-Score4
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.92
Debt/EBITDA 1.04
Cap/Depr 22.25%
Cap/Sales 0.77%
Interest Coverage 84.52
Cash Conversion 80.36%
Profit Quality 79.77%
Current Ratio 0.6
Quick Ratio 0.57
Altman-Z 0.78
F-Score4
WACC7.06%
ROIC/WACC1.9
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%11.35%
EPS Next Y11.11%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%5.84%
Revenue Next Year6.84%
Revenue Next 2Y7.77%
Revenue Next 3Y7.42%
Revenue Next 5Y7.02%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year45.53%
EBIT Next 3Y21.62%
EBIT Next 5Y14.88%
FCF growth 1Y-9.47%
FCF growth 3Y13.87%
FCF growth 5Y22.23%
OCF growth 1Y-6.9%
OCF growth 3Y15.47%
OCF growth 5Y20.7%