UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - AMS:UMG - NL0015000IY2 - Common Stock
24.01 EUR
-0.62 (-2.52%)
UMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Entertainment industry. UMG has an excellent profitability rating, but there are concerns on its financial health. UMG is quite expensive at the moment. It does show 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.
UMG had positive earnings in each of the past 5 years.
Each year in the past 5 years UMG had a positive operating cash flow.
1.2 Ratios
UMG has a better Return On Assets (14.23%) than 93.75% of its industry peers.
UMG has a better Return On Equity (53.39%) than 95.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.89%, UMG belongs to the top of the industry, outperforming 83.33% 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 10.73%.
The 3 year average ROIC (17.13%) for UMG is well above the current ROIC(12.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 53.39% | ||
| ROIC | 12.89% |
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's Profit Margin of 21.36% is amongst the best of the industry. UMG outperforms 91.67% 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 16.13%, UMG belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
UMG's Operating Margin has been stable in the last couple of years.
UMG's Gross Margin of 42.78% is on the low side compared to the rest of the industry. UMG is outperformed by 66.67% of its industry peers.
UMG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.13% | ||
| PM (TTM) | 21.36% | ||
| GM | 42.78% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so UMG is creating value.
UMG has more shares outstanding than it did 1 year ago.
UMG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UMG has an improved debt to assets ratio.
2.2 Solvency
UMG has an Altman-Z score of 0.68. 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 0.68, UMG is doing worse than 60.42% of the companies in the same industry.
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's Debt to FCF ratio of 2.22 is fine compared to the rest of the industry. UMG outperforms 68.75% of its industry peers.
UMG has a Debt/Equity ratio of 0.54. This is a neutral value indicating 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 52.08% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 0.68 |
ROIC/WACC1.81
WACC7.11%
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.
Looking at the Current ratio, with a value of 0.63, UMG is doing worse than 68.75% 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.
UMG's Quick ratio of 0.60 is on the low side compared to the rest of the industry. UMG is outperformed by 70.83% 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 nice 10.25% over the past year.
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 6.12% 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)10.25%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%9.09%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%6.42%
3.2 Future
The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
UMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.09% yearly.
EPS Next Y11.24%
EPS Next 2Y11.15%
EPS Next 3Y10.62%
EPS Next 5Y10.57%
Revenue Next Year5.25%
Revenue Next 2Y6.56%
Revenue Next 3Y6.69%
Revenue Next 5Y6.09%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.01, the valuation of UMG can be described as rather expensive.
Based on the Price/Earnings ratio, UMG is valued a bit cheaper than 79.17% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.90. UMG is around the same levels.
A Price/Forward Earnings ratio of 21.22 indicates a rather expensive valuation of UMG.
72.92% of the companies in the same industry are more expensive than UMG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.36, UMG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 21.22 |
4.2 Price Multiples
UMG's Enterprise Value to EBITDA is on the same level as the industry average.
UMG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.15 | ||
| EV/EBITDA | 20.35 |
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)2.14
PEG (5Y)1.51
EPS Next 2Y11.15%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.06%, 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 1.97. UMG pays more dividend than 91.67% of the companies in the same industry.
UMG's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
UMG pays out 35.94% of its income as dividend. This is a sustainable payout ratio.
DP35.94%
EPS Next 2Y11.15%
EPS Next 3Y10.62%
AMS:UMG (10/7/2025, 5:36:15 PM)
24.01
-0.62 (-2.52%)
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 Cap44.04B
Analysts72.31
Price Target29.34 (22.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP35.94%
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)0.37%
PT rev (3m)-0.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.43%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.01 | ||
| Fwd PE | 21.22 | ||
| P/S | 3.61 | ||
| P/FCF | 26.15 | ||
| P/OCF | 24.88 | ||
| P/B | 9.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.35 |
EPS(TTM)1
EY4.16%
EPS(NY)1.13
Fwd EY4.71%
FCF(TTM)0.92
FCFY3.82%
OCF(TTM)0.97
OCFY4.02%
SpS6.65
BVpS2.66
TBVpS-1.16
PEG (NY)2.14
PEG (5Y)1.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.23% | ||
| ROE | 53.39% | ||
| ROCE | 17.67% | ||
| ROIC | 12.89% | ||
| ROICexc | 13.53% | ||
| ROICexgc | 39.64% | ||
| OM | 16.13% | ||
| PM (TTM) | 21.36% | ||
| GM | 42.78% | ||
| FCFM | 13.82% |
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-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 21.03% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 89.36 | ||
| Cash Conversion | 74.53% | ||
| Profit Quality | 64.67% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.68 |
F-Score5
WACC7.11%
ROIC/WACC1.81
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)10.25%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%9.09%
EPS Next Y11.24%
EPS Next 2Y11.15%
EPS Next 3Y10.62%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%6.42%
Revenue Next Year5.25%
Revenue Next 2Y6.56%
Revenue Next 3Y6.69%
Revenue Next 5Y6.09%
EBIT growth 1Y24.19%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year40.89%
EBIT Next 3Y20.25%
EBIT Next 5Y13.76%
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%