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 51 industry peers in the Entertainment industry. UMG scores excellent on profitability, but there are concerns on its financial health. UMG has a correct valuation and a medium 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.
UMG had positive earnings in each of the past 5 years.
UMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UMG has a better Return On Assets (11.40%) than 94.12% of its industry peers.
Looking at the Return On Equity, with a value of 42.77%, UMG belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.64%, UMG belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for UMG is significantly above the industry average of 9.50%.
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 better Profit Margin (17.63%) than 88.24% of its industry peers.
In the last couple of years the Profit Margin of UMG has grown nicely.
Looking at the Operating Margin, with a value of 15.00%, UMG belongs to the top 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.
The Gross Margin of UMG (42.99%) is worse than 68.63% 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
UMG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for UMG has been increased compared to 1 year ago.
Compared to 5 years ago, UMG has more shares outstanding
UMG has a better debt/assets ratio than last year.
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.
UMG has a Altman-Z score of 0.42. This is in the lower half of the industry: UMG underperforms 72.55% of its industry peers.
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.
UMG has a better Debt to FCF ratio (2.22) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that UMG is somewhat dependend on debt financing.
UMG has a Debt to Equity ratio (0.54) which is in line with its industry peers.
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 | 0.42 |
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.
The Current ratio of UMG (0.63) is worse than 72.55% of its industry peers.
A Quick Ratio of 0.60 indicates that UMG may have some problems paying its short term obligations.
The Quick ratio of UMG (0.60) is worse than 72.55% of its industry peers.
| 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.
Measured over the past years, UMG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.91% on average per year.
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 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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.50 indicates a rather expensive valuation of UMG.
UMG's Price/Earnings ratio is a bit cheaper when compared to the industry. UMG is cheaper than 78.43% of the companies in the same industry.
UMG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.93, UMG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, UMG is valued a bit cheaper than 72.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UMG to the average of the S&P500 Index (24.04), we can say UMG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.5 | ||
| Fwd PE | 19.93 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UMG is on the same level as its industry peers.
| 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 UMG does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of UMG may justify a higher PE ratio.
PEG (NY)1.99
PEG (5Y)1.23
EPS Next 2Y9.87%
EPS Next 3Y9.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, 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 0.85. UMG pays more dividend than 92.16% of the companies in the same industry.
UMG's Dividend Yield is a higher than the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 (12/24/2025, 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 | 2.35% |
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)-1.42%
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)-1.7%
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 | 19.5 | ||
| Fwd PE | 19.93 | ||
| 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 2Y9.87%
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.