(UMG) Universal Music - Overview
Sector: Communication Services | Industry: Entertainment | Exchange: AS (Netherlands) | Market Cap: 35.762m EUR | Total Return: -32.1% in 12m
Avg Turnover: 51.0M
EPS Trend: 28.3%
Qual. Beats: -1
Rev. Trend: 91.9%
Qual. Beats: 0
Warnings
Altman Z'' -3.81 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Universal Music Group N.V. (UMG) is a Netherlands-based global music corporation operating through three primary segments: Recorded Music, Music Publishing, and Merchandising. The company manages the full lifecycle of intellectual property, from artist and songwriter development to the distribution and licensing of musical compositions across digital platforms, live events, and film media.
The business model relies heavily on recurring royalty streams generated from music streaming services and copyright administration. In the global music industry, major labels benefit from high barriers to entry due to the extensive capital required to acquire and maintain vast catalogs of evergreen intellectual property.
For a detailed breakdown of the companys valuation metrics, consider exploring the data on ValueRay. This integrated approach allows UMG to monetize artist brands through diverse channels, including retail fashion, concert touring, and brand rights management.
- Streaming royalty rate increases and subscriber growth drive recorded music revenue
- Market share concentration of top-tier artists dictates annual streaming payout volumes
- Music publishing valuation escalates through catalog acquisitions and synchronization licensing deals
- Platform monetization shifts and social media licensing disputes impact digital royalties
- Global consumer discretionary spending levels influence physical sales and merchandising margins
| Net Income: 3.29b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.22 > 0.02 and ΔFCF/TA 8.03 > 1.0 |
| NWC/Revenue: -11.98% < 20% (prev -17.35%; Δ 5.37% < -1%) |
| CFO/TA 0.24 > 3% & CFO 4.11b > Net Income 3.29b |
| Net Debt (3.89b) to EBITDA (6.10b): 0.64 < 3 |
| Current Ratio: 0.63 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.83b) vs 12m ago -1.73% < -2% |
| Gross Margin: 39.45% > 18% (prev 42.19%; Δ -2.74% > 0.5%) |
| Asset Turnover: 134.7% > 50% (prev 113.6%; Δ 21.08% > 0%) |
| Interest Coverage Ratio: 22.92 > 6 (EBIT TTM 5.34b / Interest Expense TTM 233.0m) |
| A: -0.15 (Total Current Assets 4.58b - Total Current Liabilities 7.21b) / Total Assets 17.5b |
| B: -1.65 (Retained Earnings -28.9b / Total Assets 17.5b) |
| C: 0.33 (EBIT TTM 5.34b / Avg Total Assets 16.3b) |
| D: 0.35 (Book Value of Equity 4.54b / Total Liabilities 12.9b) |
| Altman-Z'' = -3.81 = D |
| DSRI: 0.89 (Receivables 2.61b/2.31b, Revenue 22.0b/17.2b) |
| GMI: 1.07 (GM 42.19% / 39.45%) |
| AQI: 1.03 (AQ_t 0.70 / AQ_t-1 0.68) |
| SGI: 1.28 (Revenue 22.0b / 17.2b) |
| TATA: -0.05 (NI 3.29b - CFO 4.11b) / TA 17.5b) |
| Beneish M = -2.85 (Cap -4..+1) = A |
As of June 06, 2026, the stock is trading at EUR 18.15 with a total of 3,388,981 shares traded.
Over the past week, the price has changed by -6.92%,
over one month by -0.56%,
over three months by -4.98% and
over the past year by -32.08%.
Universal Music has no consensus analysts rating.
P/E Trailing = 23.494
P/E Forward = 17.8891
P/S = 2.8594
P/B = 7.872
P/EG = 2.7106
Revenue TTM = 22.0b EUR
EBIT TTM = 5.34b EUR
EBITDA TTM = 6.10b EUR
Long Term Debt = 2.30b EUR (from longTermDebt, last quarter)
Short Term Debt = 630.0m EUR (from shortTermDebt, last quarter)
Debt = 3.97b EUR (from shortLongTermDebtTotal, last quarter) + Leases 561.0m
Net Debt = 3.89b EUR (calculated: Debt 3.97b - CCE 82.0m)
Enterprise Value = 39.6b EUR (35.8b + Debt 3.97b - CCE 82.0m)
Interest Coverage Ratio = 22.92 (Ebit TTM 5.34b / Interest Expense TTM 233.0m)
EV/FCF = 10.41x (Enterprise Value 39.6b / FCF TTM 3.81b)
FCF Yield = 9.61% (FCF TTM 3.81b / Enterprise Value 39.6b)
FCF Margin = 17.34% (FCF TTM 3.81b / Revenue TTM 22.0b)
Net Margin = 14.98% (Net Income TTM 3.29b / Revenue TTM 22.0b)
Gross Margin = 39.45% ((Revenue TTM 22.0b - Cost of Revenue TTM 13.3b) / Revenue TTM)
Gross Margin QoQ = 38.41% (prev 39.45%)
Tobins Q-Ratio = 2.27 (Enterprise Value 39.6b / Total Assets 17.5b)
Interest Expense / Debt = 5.87% (Interest Expense 233.0m / Debt 3.97b)
Taxrate = 26.58% (1.20b / 4.50b)
NOPAT = 3.92b (EBIT 5.34b * (1 - 26.58%))
Current Ratio = 0.63 (Total Current Assets 4.58b / Total Current Liabilities 7.21b)
Debt / Equity = 0.87 (Debt 3.97b / totalStockholderEquity, last quarter 4.54b)
Debt / EBITDA = 0.64 (Net Debt 3.89b / EBITDA 6.10b)
Debt / FCF = 1.02 (Net Debt 3.89b / FCF TTM 3.81b)
Total Stockholder Equity = 4.62b (last 4 quarters mean from totalStockholderEquity)
RoA = 20.18% (Net Income 3.29b / Total Assets 17.5b)
RoE = 71.26% (Net Income TTM 3.29b / Total Stockholder Equity 4.62b)
RoCE = 77.22% (EBIT 5.34b / Capital Employed (Equity 4.62b + L.T.Debt 2.30b))
RoIC = 36.31% (NOPAT 3.92b / Invested Capital 10.8b)
WACC = 5.98% (E(35.8b)/V(39.7b) * Re(6.16%) + D(3.97b)/V(39.7b) * Rd(5.87%) * (1-Tc(0.27)))
Discount Rate = 6.16% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -4.49 | Cagr: 0.39%
[DCF] Terminal Value 77.97% ; FCFF base≈3.12b ; Y1≈3.58b ; Y5≈5.27b
[DCF] Fair Price = 41.09 (EV 79.2b - Net Debt 3.89b = Equity 75.4b / Shares 1.83b; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 28.30 | EPS CAGR: 7.65% | SUE: -2.55 | # QB: -1
Revenue Correlation: 91.88 | Revenue CAGR: 12.77% | SUE: 0.08 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.24 | Chg30d=+4.35% | Revisions=+20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.24 | Chg30d=+4.35% | Revisions=+20% | Analysts=1
EPS current Year (2026-12-31): EPS=1.05 | Chg30d=-1.18% | Revisions=+0% | GrowthEPS=+2.3% | GrowthRev=+8.2%
EPS next Year (2027-12-31): EPS=1.14 | Chg30d=-3.27% | Revisions=-17% | GrowthEPS=+8.3% | GrowthRev=+7.7%
[Analyst] Revisions Ratio: +20%