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

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

27.855  -0.02 (-0.09%)

Fundamental Rating

5

Overall UMG gets a fundamental rating of 5 out of 10. We evaluated UMG against 49 industry peers in the Entertainment industry. UMG scores excellent on profitability, but there are concerns on its financial health. UMG has a correct valuation and a medium growth rate.


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.
In the past 5 years UMG has always been profitable.
UMG had a positive operating cash flow in each of the past 5 years.
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 93.88% 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 93.88% of the companies in the same industry.
The Return On Invested Capital of UMG (13.38%) is better than 87.76% 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 9.64%.
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 87.76% of the companies in the same industry.
In the last couple of years the Profit Margin of UMG has grown nicely.
UMG has a better Operating Margin (15.00%) than 87.76% of its industry peers.
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 61.22% 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
UMG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UMG has an improved debt to assets ratio.
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 0.88, we must say that UMG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of UMG (0.88) 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's Debt to FCF ratio of 1.92 is fine compared to the rest of the industry. UMG outperforms 79.59% 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's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. UMG outperforms 57.14% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.92
Altman-Z 0.88
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

UMG has a Current 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.
Looking at the Current ratio, with a value of 0.60, UMG is doing worse than 69.39% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that UMG may have some problems paying its short term obligations.
With a Quick ratio value of 0.57, UMG is not doing good in the industry: 69.39% 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

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.
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 6.54% in the past year.
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 Year6.84%
Revenue Next 2Y7.77%
Revenue Next 3Y7.42%
Revenue Next 5Y6.42%

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.
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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4

4. Valuation

4.1 Price/Earnings Ratio

UMG is valuated rather expensively with a Price/Earnings ratio of 24.65.
71.43% 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 25.91. UMG is around the same levels.
The Price/Forward Earnings ratio is 27.37, which means the current valuation is very expensive for UMG.
UMG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. UMG is cheaper than 63.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UMG to the average of the S&P500 Index (21.85), we can say UMG is valued slightly more expensively.
Industry RankSector Rank
PE 24.65
Fwd PE 27.37
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

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UMG is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of UMG indicates a somewhat cheap valuation: UMG is cheaper than 63.27% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 30.7
EV/EBITDA 24.59
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)2.22
PEG (5Y)1.55
EPS Next 2Y12.83%
EPS Next 3Y10.32%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.90%, UMG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.36, UMG pays a better dividend. On top of this UMG pays more dividend than 93.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, UMG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.9%

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 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 (5/23/2025, 4:18:38 PM)

27.855

-0.02 (-0.09%)

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 Owners28.41%
Inst Owner ChangeN/A
Ins Owners17.88%
Ins Owner ChangeN/A
Market Cap51.08B
Analysts73.08
Price Target29.18 (4.76%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.9%
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)-0.1%
PT rev (3m)8.81%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-0.59%
Valuation
Industry RankSector Rank
PE 24.65
Fwd PE 27.37
P/S 4.32
P/FCF 30.7
P/OCF 29.1
P/B 11.29
P/tB N/A
EV/EBITDA 24.59
EPS(TTM)1.13
EY4.06%
EPS(NY)1.02
Fwd EY3.65%
FCF(TTM)0.91
FCFY3.26%
OCF(TTM)0.96
OCFY3.44%
SpS6.45
BVpS2.47
TBVpS-1.68
PEG (NY)2.22
PEG (5Y)1.55
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 0.88
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 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%