Universal Music Group N.V.
Universal Music Group N.V. Fundamental Analysis
Universal Music Group N.V. (UMGNF) shows strong financial fundamentals with a PE ratio of 13.26, profit margin of 21.36%, and ROE of 55.39%. The company generates $12.0B in annual revenue with moderate year-over-year growth of 6.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze UMGNF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentUMGNF demonstrates superior asset utilization.
Valuation Score
ExcellentUMGNF trades at attractive valuation levels.
Growth Score
ExcellentUMGNF delivers strong and consistent growth momentum.
Financial Health Score
ModerateUMGNF shows balanced financial health with some risks.
Profitability Score
ExcellentUMGNF achieves industry-leading margins.
Key Financial Metrics
Is UMGNF Expensive or Cheap?
P/E Ratio
UMGNF trades at 13.26 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UMGNF's PEG of 0.64 indicates potential undervaluation.
Price to Book
The market values Universal Music Group N.V. at 7.08 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.33 times EBITDA. This signals the market has high growth expectations.
How Well Does UMGNF Make Money?
Net Profit Margin
For every $100 in sales, Universal Music Group N.V. keeps $21.36 as profit after all expenses.
Operating Margin
Core operations generate 16.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $55.39 in profit for every $100 of shareholder equity.
ROA
Universal Music Group N.V. generates $14.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Universal Music Group N.V. produces operating cash flow of $1.75B, showing steady but balanced cash generation.
Free Cash Flow
Universal Music Group N.V. generates strong free cash flow of $1.66B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.91 in free cash annually.
FCF Yield
UMGNF converts 4.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.63
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.55
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How UMGNF Stacks Against Its Sector Peers
| Metric | UMGNF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.26 | 22.05 | Better (Cheaper) |
| ROE | 55.39% | 1173.00% | Weak |
| Net Margin | 21.36% | -64583.00% (disorted) | Strong |
| Debt/Equity | 0.77 | 1.36 | Strong (Low Leverage) |
| Current Ratio | 0.63 | 1.58 | Weak Liquidity |
| ROA | 14.23% | -200331.00% (disorted) | Strong |
UMGNF outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Universal Music Group N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
144.29%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
217.16%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
278.63%
Industry Style: Growth, Technology, Streaming
High Growth