UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:UMG - NL0015000IY2 - Common Stock
21.38 EUR
-0.71 (-3.21%)
Taking everything into account, UMG scores 5 out of 10 in our fundamental rating. UMG was compared to 44 industry peers in the Entertainment industry. UMG has an excellent profitability rating, 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
UMG had positive earnings in the past year.
In the past year UMG had a positive cash flow from operations.
Each year in the past 5 years UMG has been profitable.
UMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
UMG's Return On Assets of 11.40% is amongst the best of the industry. UMG outperforms 95.45% of its industry peers.
The Return On Equity of UMG (42.77%) is better than 95.45% of its industry peers.
UMG has a Return On Invested Capital of 11.64%. This is amongst the best in the industry. UMG outperforms 88.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UMG is significantly above the industry average of 10.17%.
The 3 year average ROIC (17.13%) for UMG is well above the current ROIC(11.64%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 17.63%, UMG belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
In the last couple of years the Profit Margin of UMG has grown nicely.
UMG's Operating Margin of 15.00% is amongst the best of the industry. UMG outperforms 86.36% of its industry peers.
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 68.18% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), UMG is creating value.
UMG has more shares outstanding than it did 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 worse Altman-Z score (0.42) than 70.45% 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.
Looking at the Debt to FCF ratio, with a value of 2.22, UMG is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that UMG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, UMG perfoms like the industry average, outperforming 59.09% 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
A Current Ratio of 0.63 indicates that UMG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.63, UMG is doing worse than 68.18% of the companies in the same industry.
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.
The Quick ratio of UMG (0.60) is worse than 68.18% 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%.
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.
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 Y10.68%
EPS Next 2Y10.16%
EPS Next 3Y10.21%
EPS Next 5Y10.57%
Revenue Next Year5.5%
Revenue Next 2Y6.09%
Revenue Next 3Y6.47%
Revenue Next 5Y6.28%
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.
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 18.92 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 79.55% of the companies in the same industry.
UMG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
UMG is valuated rather expensively with a Price/Forward Earnings ratio of 19.24.
UMG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UMG is cheaper than 79.55% of the companies in the same industry.
UMG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 19.24 |
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.
61.36% of the companies in the same industry are more expensive than UMG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.29 | ||
| EV/EBITDA | 20 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
UMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)1.19
EPS Next 2Y10.16%
EPS Next 3Y10.21%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.36%.
UMG's Dividend Yield is rather good when compared to the industry average which is at 2.36. UMG pays more dividend than 90.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, UMG has a dividend comparable with the average S&P500 company.
| 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
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 2Y10.16%
EPS Next 3Y10.21%
AMS:UMG (12/2/2025, 5:35:30 PM)
21.38
-0.71 (-3.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners34.96%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap39.21B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.85
Price Target29.09 (36.06%)
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)-0.86%
PT rev (3m)-0.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.93%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 19.24 | ||
| P/S | 3.31 | ||
| P/FCF | 23.29 | ||
| P/OCF | 22.16 | ||
| P/B | 8.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20 |
EPS(TTM)1.13
EY5.29%
EPS(NY)1.11
Fwd EY5.2%
FCF(TTM)0.92
FCFY4.29%
OCF(TTM)0.97
OCFY4.51%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.77
PEG (5Y)1.19
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 Y10.68%
EPS Next 2Y10.16%
EPS Next 3Y10.21%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
Revenue Next Year5.5%
Revenue Next 2Y6.09%
Revenue Next 3Y6.47%
Revenue Next 5Y6.28%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.89%
EBIT Next 3Y20.25%
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 10.68% in the next year.