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

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

26.82  -0.75 (-2.72%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to UMG. UMG was compared to 44 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

In the past year UMG was profitable.
In the past year UMG had a positive cash flow from operations.
Each year in the past 5 years UMG has been profitable.
In the past 5 years UMG always reported a positive cash flow from operatings.
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 Return On Assets of 12.04%. This is amongst the best in the industry. UMG outperforms 95.45% 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 93.18% of the companies in the same industry.
The Return On Invested Capital of UMG (13.38%) is better than 88.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UMG is significantly above the industry average of 8.11%.
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

UMG has a Profit Margin of 17.63%. This is amongst the best in the industry. UMG outperforms 86.36% 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 88.64% of the companies in the same industry.
UMG's Operating Margin has been stable in the last couple of years.
UMG has a worse Gross Margin (42.99%) than 63.64% 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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), UMG 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.
UMG has a better debt/assets ratio than last year.
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 0.85. This is a bad value and indicates that UMG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of UMG (0.85) 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 better Debt to FCF ratio (1.92) than 77.27% 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 of 0.50. This is comparable to the rest of the industry: UMG outperforms 54.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.92
Altman-Z 0.85
ROIC/WACC1.86
WACC7.2%
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 worse Current ratio (0.60) than 70.45% 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.
With a Quick ratio value of 0.57, UMG is not doing good in the industry: 70.45% of the companies in the same industry are doing better.
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

The Earnings Per Share has grown by an impressive 66.18% 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.
Looking at the last year, UMG shows a small growth in Revenue. The Revenue has grown by 6.54% in the last 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%11.35%
Revenue 1Y (TTM)6.54%
Revenue growth 3Y11.64%
Revenue growth 5Y10.57%
Sales Q2Q%5.84%

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.
UMG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.40% yearly.
EPS Next Y11.11%
EPS Next 2Y12.83%
EPS Next 3Y10.32%
EPS Next 5Y10.57%
Revenue Next Year6.84%
Revenue Next 2Y7.77%
Revenue Next 3Y7.42%
Revenue Next 5Y7.4%

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.
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

Based on the Price/Earnings ratio of 23.73, the valuation of UMG can be described as rather expensive.
Based on the Price/Earnings ratio, UMG is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. UMG is around the same levels.
With a Price/Forward Earnings ratio of 26.35, UMG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 61.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, UMG is valued at the same level.
Industry RankSector Rank
PE 23.73
Fwd PE 26.35
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 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, UMG is valued a bit more expensive than 61.36% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UMG is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 29.56
EV/EBITDA 24.33
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 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)1.49
EPS Next 2Y12.83%
EPS Next 3Y10.32%

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3

5. Dividend

5.1 Amount

UMG has a Yearly Dividend Yield of 1.87%.
UMG's Dividend Yield is rather good when compared to the industry average which is at 2.44. UMG pays more dividend than 93.18% of the companies in the same industry.
UMG's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
Industry RankSector Rank
Dividend Yield 1.87%

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 44.73% of its income as dividend. 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 (6/17/2025, 5:36:15 PM)

26.82

-0.75 (-2.72%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)04-29 2025-04-29
Earnings (Next)07-22 2025-07-22
Inst Owners29.46%
Inst Owner ChangeN/A
Ins Owners18.52%
Ins Owner ChangeN/A
Market Cap49.19B
Analysts73.08
Price Target29.19 (8.84%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.87%
Yearly Dividend0.51
Dividend Growth(5Y)N/A
DP44.73%
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)0.02%
PT rev (3m)5.47%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1%
Valuation
Industry RankSector Rank
PE 23.73
Fwd PE 26.35
P/S 4.16
P/FCF 29.56
P/OCF 28.03
P/B 10.87
P/tB N/A
EV/EBITDA 24.33
EPS(TTM)1.13
EY4.21%
EPS(NY)1.02
Fwd EY3.79%
FCF(TTM)0.91
FCFY3.38%
OCF(TTM)0.96
OCFY3.57%
SpS6.45
BVpS2.47
TBVpS-1.68
PEG (NY)2.14
PEG (5Y)1.49
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 0.85
F-Score4
WACC7.2%
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 Year6.84%
Revenue Next 2Y7.77%
Revenue Next 3Y7.42%
Revenue Next 5Y7.4%
EBIT growth 1Y25.18%
EBIT growth 3Y8.39%
EBIT growth 5Y10.76%
EBIT Next Year45.53%
EBIT Next 3Y21.62%
EBIT Next 5Y15.29%
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%