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

Europe • Euronext Amsterdam • AMS:UMG • NL0015000IY2

19.41 EUR
-0.12 (-0.64%)
Last: Feb 4, 2026, 05:36 PM
Fundamental Rating

5

Overall UMG gets a fundamental rating of 5 out of 10. We evaluated UMG against 48 industry peers in the Entertainment industry. UMG has an excellent profitability rating, but there are concerns on its financial health. UMG has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year UMG was profitable.
  • UMG had a positive operating cash flow in the past year.
  • 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.
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

  • The Return On Assets of UMG (11.40%) is better than 95.83% of its industry peers.
  • UMG has a Return On Equity of 42.77%. This is amongst the best in the industry. UMG outperforms 95.83% of its industry peers.
  • With an excellent Return On Invested Capital value of 11.64%, UMG belongs to the best of the industry, outperforming 87.50% 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 9.36%.
  • 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 RankSector 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%
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

  • The Profit Margin of UMG (17.63%) is better than 91.67% of its industry peers.
  • UMG's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 15.00%, UMG belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
  • UMG's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of UMG (42.99%) is worse than 60.42% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UMG is creating value.
  • The number of shares outstanding for UMG has been increased compared to 1 year ago.
  • The number of shares outstanding for UMG has been increased compared to 5 years ago.
  • Compared to 1 year ago, UMG has an improved debt to assets ratio.
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

  • UMG has an Altman-Z score of 0.21. 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 0.21, UMG is doing worse than 70.83% of the companies in the same industry.
  • 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.
  • UMG has a better Debt to FCF ratio (2.22) than 72.92% 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 of 0.54. This is comparable to the rest of the industry: UMG outperforms 56.25% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.54
Debt/FCF 2.22
Altman-Z 0.21
ROIC/WACC1.68
WACC6.93%
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 0.63. This is a bad value and indicates that UMG is not financially healthy enough and could expect problems in meeting its short term obligations.
  • UMG has a worse Current ratio (0.63) than 62.50% of its industry peers.
  • 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.
  • With a Quick ratio value of 0.60, UMG is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.63
Quick Ratio 0.6
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%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.
  • The Revenue is expected to grow by 5.97% on average over the next years.
EPS Next Y11.55%
EPS Next 2Y9.92%
EPS Next 3Y9.96%
EPS Next 5Y10.57%
Revenue Next Year5.59%
Revenue Next 2Y6.38%
Revenue Next 3Y6.65%
Revenue Next 5Y5.97%

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.
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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5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 17.18 indicates a rather expensive valuation of UMG.
  • Based on the Price/Earnings ratio, UMG is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
  • UMG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
  • The Price/Forward Earnings ratio is 17.54, which indicates a rather expensive current valuation of UMG.
  • UMG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UMG is cheaper than 75.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.51. UMG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.18
Fwd PE 17.54
UMG.AS Price Earnings VS Forward Price EarningsUMG.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as UMG.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 62.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 21.14
EV/EBITDA 17.85
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

  • UMG's 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)1.49
PEG (5Y)1.08
EPS Next 2Y9.92%
EPS Next 3Y9.96%

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4

5. Dividend

5.1 Amount

  • UMG has a Yearly Dividend Yield of 2.51%.
  • UMG's Dividend Yield is rather good when compared to the industry average which is at 1.06. UMG pays more dividend than 89.58% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, UMG pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.51%

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 44.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.87%
EPS Next 2Y9.92%
EPS Next 3Y9.96%
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 (2/4/2026, 5:36:15 PM)

19.41

-0.12 (-0.64%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)10-30
Earnings (Next)02-26
Inst Owners35.41%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap35.60B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts73.08
Price Target28.82 (48.48%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.51%
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)0.19%
PT rev (3m)-1.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.58%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 17.18
Fwd PE 17.54
P/S 3.01
P/FCF 21.14
P/OCF 20.11
P/B 7.3
P/tB N/A
EV/EBITDA 17.85
EPS(TTM)1.13
EY5.82%
EPS(NY)1.11
Fwd EY5.7%
FCF(TTM)0.92
FCFY4.73%
OCF(TTM)0.97
OCFY4.97%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.49
PEG (5Y)1.08
Graham Number8.22
Profitability
Industry RankSector 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 RankSector 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 0.21
F-Score5
WACC6.93%
ROIC/WACC1.68
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 Y11.55%
EPS Next 2Y9.92%
EPS Next 3Y9.96%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
Revenue Next Year5.59%
Revenue Next 2Y6.38%
Revenue Next 3Y6.65%
Revenue Next 5Y5.97%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.22%
EBIT Next 3Y19.93%
EBIT Next 5Y13.59%
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.


What is the valuation status of UNIVERSAL MUSIC GROUP NV (UMG.AS) stock?

ChartMill assigns a valuation rating of 5 / 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.


Can you provide the PE and PB ratios for UMG stock?

The Price/Earnings (PE) ratio for UNIVERSAL MUSIC GROUP NV (UMG.AS) is 17.18 and the Price/Book (PB) ratio is 7.3.


Is the dividend of UNIVERSAL MUSIC GROUP NV sustainable?

The dividend rating of UNIVERSAL MUSIC GROUP NV (UMG.AS) is 4 / 10 and the dividend payout ratio is 44.87%.