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

AMS:UMG - Euronext Amsterdam - NL0015000IY2 - Common Stock - Currency: EUR

25.86  +0.01 (+0.04%)

Fundamental Rating

5

Taking everything into account, UMG scores 5 out of 10 in our fundamental rating. UMG was compared to 43 industry peers in the Entertainment industry. While UMG has a great profitability rating, there are quite some concerns on its financial health. While showing a medium growth rate, UMG is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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8

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.
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.
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

UMG has a better Return On Assets (12.04%) than 93.02% of its industry peers.
Looking at the Return On Equity, with a value of 46.09%, UMG belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.38%, UMG belongs to the top of the industry, outperforming 83.72% 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 9.53%.
Industry RankSector Rank
ROA 12.04%
ROE 46.09%
ROIC 13.38%
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

Looking at the Profit Margin, with a value of 17.63%, UMG belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
In the last couple of years the Profit Margin of UMG has grown nicely.
With an excellent Operating Margin value of 15.00%, UMG belongs to the best of the industry, outperforming 83.72% 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.
With a Gross Margin value of 42.99%, UMG is not doing good in the industry: 60.47% of the companies in the same industry are doing better.
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

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
The number of shares outstanding for UMG has been increased compared to 5 years ago.
The debt/assets ratio for UMG has been reduced compared to a year ago.
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

Based on the Altman-Z score of 0.70, we must say that UMG is in the distress zone and has some risk of bankruptcy.
UMG has a Altman-Z score (0.70) which is comparable to the rest of the industry.
The Debt to FCF ratio of UMG is 1.92, which is an excellent value as it means it would take UMG, only 1.92 years of fcf income to pay off all of its debts.
UMG has a Debt to FCF ratio of 1.92. This is in the better half of the industry: UMG outperforms 74.42% of its industry peers.
UMG has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
UMG has a Debt to Equity ratio (0.50) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.92
Altman-Z 0.7
ROIC/WACC1.86
WACC7.18%
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

A Current Ratio of 0.60 indicates that UMG may have some problems paying its short term obligations.
UMG has a Current ratio of 0.60. This is in the lower half of the industry: UMG underperforms 67.44% of its industry peers.
UMG has a Quick Ratio of 0.60. 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 Quick ratio of 0.57. This is in the lower half of the industry: UMG underperforms 67.44% of its industry peers.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.57
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.
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%.
The Revenue has been growing by 10.57% on average over the past years. This is quite good.
EPS 1Y (TTM)66.18%
EPS 3Y32.12%
EPS 5Y15.91%
EPS Q2Q%11.35%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%5.84%

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.
UMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.42% yearly.
EPS Next Y11.11%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
EPS Next 5Y10.57%
Revenue Next Year7.36%
Revenue Next 2Y8.09%
Revenue Next 3Y7.89%
Revenue Next 5Y6.42%

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.
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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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.88, which indicates a rather expensive current valuation of UMG.
Based on the Price/Earnings ratio, UMG is valued a bit cheaper than the industry average as 72.09% of the companies are valued more expensively.
UMG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.22.
The Price/Forward Earnings ratio is 25.41, which means the current valuation is very expensive for UMG.
62.79% 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 20.86, UMG is valued a bit more expensive.
Industry RankSector Rank
PE 22.88
Fwd PE 25.41
UMG.AS Price Earnings VS Forward Price EarningsUMG.AS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

UMG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. UMG is more expensive than 60.47% of the companies in the same industry.
UMG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 28.5
EV/EBITDA 22.88
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

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of UMG may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)1.44
EPS Next 2Y12.83%
EPS Next 3Y10.32%

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4

5. Dividend

5.1 Amount

UMG has a Yearly Dividend Yield of 2.05%.
UMG's Dividend Yield is rather good when compared to the industry average which is at 1.90. UMG pays more dividend than 95.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, UMG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.05%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years3
UMG.AS Yearly Dividends per shareUMG.AS Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

44.73% of the earnings are spent on dividend by UMG. This is a bit on the high side, but may be sustainable.
DP44.73%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
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 (5/2/2025, 7:00:00 PM)

25.86

+0.01 (+0.04%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)03-06 2025-03-06/amc
Earnings (Next)04-29 2025-04-29
Inst Owners28.41%
Inst Owner ChangeN/A
Ins Owners17.88%
Ins Owner ChangeN/A
Market Cap47.42B
Analysts73.08
Price Target28.99 (12.1%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.05%
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP44.73%
Div Incr Years2
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)4.73%
PT rev (3m)9.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-1.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-0.11%
Valuation
Industry RankSector Rank
PE 22.88
Fwd PE 25.41
P/S 4.01
P/FCF 28.5
P/OCF 27.02
P/B 10.48
P/tB N/A
EV/EBITDA 22.88
EPS(TTM)1.13
EY4.37%
EPS(NY)1.02
Fwd EY3.94%
FCF(TTM)0.91
FCFY3.51%
OCF(TTM)0.96
OCFY3.7%
SpS6.45
BVpS2.47
TBVpS-1.68
PEG (NY)2.06
PEG (5Y)1.44
Profitability
Industry RankSector Rank
ROA 12.04%
ROE 46.09%
ROCE 18.31%
ROIC 13.38%
ROICexc 14.23%
ROICexgc 85.47%
OM 15%
PM (TTM) 17.63%
GM 42.99%
FCFM 14.06%
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-Score4
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.92
Debt/EBITDA 1.04
Cap/Depr 22.25%
Cap/Sales 0.77%
Interest Coverage 84.52
Cash Conversion 80.36%
Profit Quality 79.77%
Current Ratio 0.6
Quick Ratio 0.57
Altman-Z 0.7
F-Score4
WACC7.18%
ROIC/WACC1.86
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%11.35%
EPS Next Y11.11%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
EPS Next 5Y10.57%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%5.84%
Revenue Next Year7.36%
Revenue Next 2Y8.09%
Revenue Next 3Y7.89%
Revenue Next 5Y6.42%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year48.03%
EBIT Next 3Y22.4%
EBIT Next 5Y15.54%
FCF growth 1Y-9.47%
FCF growth 3Y13.87%
FCF growth 5Y22.23%
OCF growth 1Y-6.9%
OCF growth 3Y15.47%
OCF growth 5Y20.7%