UNIVERSAL MUSIC GROUP NV (UMG.AS) Stock Fundamental Analysis
AMS:UMG - NL0015000IY2 - Common Stock
24.81 EUR
+0.09 (+0.36%)
UMG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 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.
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.
In the past 5 years UMG has always been profitable.
Each year in the past 5 years UMG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of UMG (14.23%) is better than 95.35% of its industry peers.
UMG has a better Return On Equity (53.39%) than 97.67% of its industry peers.
UMG has a better Return On Invested Capital (12.89%) than 88.37% of its industry peers.
UMG had an Average Return On Invested Capital over the past 3 years of 17.13%. This is significantly above the industry average of 10.50%.
The last Return On Invested Capital (12.89%) 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 | 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 has a better Profit Margin (21.36%) than 95.35% of its industry peers.
UMG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 16.13%, UMG belongs to the best of the industry, outperforming 90.70% 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 62.79% of its industry peers.
In the last couple of years the Gross Margin of UMG has declined.
| 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
UMG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, UMG has more shares outstanding
Compared to 5 years ago, UMG has more shares outstanding
The debt/assets ratio for UMG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that UMG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of UMG (0.69) is comparable to the rest of the 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 has a better Debt to FCF ratio (2.22) than 69.77% 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 53.49% 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 | 0.69 |
ROIC/WACC1.84
WACC6.99%
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 65.12% of its industry peers.
A Quick Ratio of 0.60 indicates that UMG may have some problems paying 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 65.12% 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.
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)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.
Based on estimates for the next years, UMG will show a small growth in Revenue. The Revenue will grow by 6.16% on average per year.
EPS Next Y11.11%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
EPS Next 5Y10.57%
Revenue Next Year6.64%
Revenue Next 2Y7.5%
Revenue Next 3Y7.25%
Revenue Next 5Y6.16%
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.
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
With a Price/Earnings ratio of 24.81, UMG is valued on the expensive side.
81.40% of the companies in the same industry are more expensive than UMG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.24. UMG is around the same levels.
With a Price/Forward Earnings ratio of 21.28, UMG is valued on the expensive side.
67.44% 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 35.82, UMG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.81 | ||
| Fwd PE | 21.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as UMG.
UMG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.02 | ||
| EV/EBITDA | 20.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
UMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.23
PEG (5Y)1.56
EPS Next 2Y12.83%
EPS Next 3Y10.32%
5. Dividend
5.1 Amount
UMG has a Yearly Dividend Yield of 2.13%.
Compared to an average industry Dividend Yield of 1.98, UMG pays a better dividend. On top of this UMG pays more dividend than 93.02% of the companies listed in the same industry.
UMG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 2Y12.83%
EPS Next 3Y10.32%
AMS:UMG (8/22/2025, 7:00:00 PM)
24.81
+0.09 (+0.36%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners29.46%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap45.50B
Analysts73.33
Price Target29.21 (17.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)-0.73%
PT rev (3m)0.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.81 | ||
| Fwd PE | 21.28 | ||
| P/S | 3.73 | ||
| P/FCF | 27.02 | ||
| P/OCF | 25.71 | ||
| P/B | 9.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.42 |
EPS(TTM)1
EY4.03%
EPS(NY)1.17
Fwd EY4.7%
FCF(TTM)0.92
FCFY3.7%
OCF(TTM)0.97
OCFY3.89%
SpS6.65
BVpS2.66
TBVpS-1.16
PEG (NY)2.23
PEG (5Y)1.56
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 | 0.69 |
F-Score5
WACC6.99%
ROIC/WACC1.84
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 Y11.11%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.12%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%6.42%
Revenue Next Year6.64%
Revenue Next 2Y7.5%
Revenue Next 3Y7.25%
Revenue Next 5Y6.16%
EBIT growth 1Y24.19%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year45.53%
EBIT Next 3Y21.62%
EBIT Next 5Y13.84%
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%