UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
Europe - AMS:UMG - NL0015000IY2 - Common Stock
22.53 EUR
+0.03 (+0.13%)
Overall UMG gets a fundamental rating of 5 out of 10. We evaluated UMG against 43 industry peers in the Entertainment industry. While UMG belongs to the best of the industry regarding profitability, 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.
UMG had a positive operating cash flow in the past year.
In the past 5 years UMG has always been profitable.
UMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of UMG (11.40%) is better than 93.02% of its industry peers.
UMG's Return On Equity of 42.77% is amongst the best of the industry. UMG outperforms 95.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.64%, UMG belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UMG is significantly above the industry average of 10.60%.
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
With an excellent Profit Margin value of 17.63%, UMG belongs to the best of the industry, outperforming 88.37% of the companies in the same industry.
UMG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.00%, UMG belongs to the best of the industry, outperforming 81.40% 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.
UMG has a worse Gross Margin (42.99%) than 69.77% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
UMG has a better debt/assets ratio than last year.
2.2 Solvency
UMG has an Altman-Z score of 0.45. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
UMG's Altman-Z score of 0.45 is on the low side compared to the rest of the industry. UMG is outperformed by 62.79% 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.
With a decent Debt to FCF ratio value of 2.22, UMG is doing good in the industry, outperforming 69.77% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that UMG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, UMG is in line with its industry, outperforming 55.81% of the companies in the same industry.
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 | 0.45 |
ROIC/WACC1.65
WACC7.07%
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 67.44% 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.
UMG's Quick ratio of 0.60 is on the low side compared to the rest of the industry. UMG is outperformed by 67.44% 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.
The Earnings Per Share has been growing by 15.91% on average over the past years. This is quite good.
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
UMG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.57% yearly.
The Revenue is expected to grow by 6.09% on average over the next years.
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.
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 19.94 indicates a rather expensive valuation of UMG.
Compared to the rest of the industry, the Price/Earnings ratio of UMG indicates a rather cheap valuation: UMG is cheaper than 81.40% of the companies listed in the same industry.
UMG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
A Price/Forward Earnings ratio of 19.91 indicates a rather expensive valuation of UMG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 74.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. UMG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.94 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
UMG's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, UMG is valued a bit cheaper than 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.54 | ||
| EV/EBITDA | 20.34 |
4.3 Compensation for Growth
UMG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of UMG may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)1.25
EPS Next 2Y11.15%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.32, UMG pays a better dividend. On top of this UMG pays more dividend than 90.70% of the companies listed in the same industry.
UMG's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
44.87% of the earnings are spent on dividend by UMG. This is a bit on the high side, but may be sustainable.
DP44.87%
EPS Next 2Y11.15%
EPS Next 3Y10.62%
AMS:UMG (11/5/2025, 12:18:55 PM)
22.53
+0.03 (+0.13%)
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 Cap41.32B
Revenue(TTM)11.83B
Net Income(TTM)2.09B
Analysts72.31
Price Target29.18 (29.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-0.55%
PT rev (3m)-2.07%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.94 | ||
| Fwd PE | 19.91 | ||
| P/S | 3.49 | ||
| P/FCF | 24.54 | ||
| P/OCF | 23.35 | ||
| P/B | 8.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.34 |
EPS(TTM)1.13
EY5.02%
EPS(NY)1.13
Fwd EY5.02%
FCF(TTM)0.92
FCFY4.08%
OCF(TTM)0.97
OCFY4.28%
SpS6.45
BVpS2.66
TBVpS-1.16
PEG (NY)1.77
PEG (5Y)1.25
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 | 0.45 |
F-Score5
WACC7.07%
ROIC/WACC1.65
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 Y11.24%
EPS Next 2Y11.15%
EPS Next 3Y10.62%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%N/A
Revenue Next Year5.25%
Revenue Next 2Y6.56%
Revenue Next 3Y6.69%
Revenue Next 5Y6.09%
EBIT growth 1Y25.18%
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%
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 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.
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 11.24% in the next year.