UMG—60

Universal Music Group NV

Entertainment ProductionVerified

Score breakdown

Profitability+35Sentiment+30Risk penalty-3Missing signals-3

Quality breakdown

Key fields100Profile38Conclusion97AI synthesis40Observations23

Universal Music Group NV maintains a capital structure with a debt-to-equity ratio of 0.75, indicating a moderate reliance on debt financing [doc:HA-latest]. The company's liquidity position is characterized as medium, with cash and equivalents amounting to EUR 451 million, which is significantly lower than its long-term debt of EUR 3.4 billion [doc:HA-latest]. The company's return on equity of 33.74% and return on assets of 8.78% suggest strong profitability relative to its equity and asset base [doc:HA-latest]. In terms of profitability, Universal Music Group NV's operating income of EUR 1.998 billion and net income of EUR 1.533 billion reflect a healthy margin performance. The company's gross profit of EUR 5.311 billion indicates a strong ability to control production and distribution costs [doc:HA-latest]. These figures are expected to be benchmarked against the Entertainment Production industry's preferred metrics, which typically emphasize revenue growth and margin stability. The company's geographic exposure is not explicitly detailed in the provided data, but its global catalog of artists and recordings suggests a broad international presence. Revenue concentration data is not available, but the company's operations span multiple regions, which may mitigate regional economic risks [doc:HA-latest]. Looking ahead, the company is projected to maintain a stable growth trajectory, with current fiscal year (FY) and next FY outlooks indicating continued revenue and profit expansion. The company's free cash flow of EUR 963 million and operating cash flow of EUR 1.739 billion support its ability to fund operations and invest in growth opportunities [doc:HA-latest]. Risk factors for Universal Music Group NV include liquidity constraints, as net cash is negative after subtracting total debt. The company's dilution potential is assessed as low, with no significant dilution expected in the near term [doc:HA-latest]. The company's capital expenditure of EUR -70 million suggests a focus on optimizing existing assets rather than large-scale new investments [doc:HA-latest]. Recent events, including analyst estimates and recommendations, indicate a generally positive outlook for the company. The mean price target of EUR 24.41 and median price target of EUR 24.00 suggest a consensus for moderate growth, with a range from EUR 15.00 to EUR 31.00 [doc:HA-latest]. The mean recommendation of 2.24, with 5 strong-buy and 8 buy ratings, further supports this positive sentiment [doc:HA-latest].

Profile

CompanyUniversal Music Group NV

TickerUMG.AS

SectorConsumer Cyclicals

BusinessCyclical Consumer Services

Industry groupCyclical Consumer Services

IndustryEntertainment Production

AI analysis

Business. Universal Music Group NV is engaged in the discovery and development of artists and songwriters, and the marketing, promotion, distribution, sales, and licensing of audio and audio-visual content, with a catalog of over three million recordings [doc:HA-latest].

Classification. Universal Music Group NV is classified under the Entertainment Production industry within the Consumer Cyclicals economic sector, with a confidence level of 0.92 [doc:verified market data].

Key takeaways

Universal Music Group NV has a strong profitability profile with a return on equity of 33.74% and a return on assets of 8.78%.
The company's liquidity position is moderate, with cash and equivalents significantly lower than its long-term debt.
Analysts have a generally positive outlook, with a mean price target of EUR 24.41 and a mean recommendation of 2.24.
The company's capital expenditure is negative, indicating a focus on asset optimization.
The company's dilution potential is low, with no significant dilution expected in the near term.
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Financial snapshot

PeriodHA-latest

CurrencyEUR

Revenue$12.51B

Gross profit$5.31B

Operating income$2.00B

Net income$1.53B

R&D—

SG&A—

D&A—

SBC—

Operating cash flow$1.74B

CapEx-$70.0M

Free cash flow$963.0M

Total assets$17.46B

Total liabilities$12.91B

Total equity$4.54B

Cash & equivalents$451.0M

Long-term debt$3.41B

Annual history (last 5)

PeriodRevenueOp IncomeNet IncomeFCF

FY0$12.51B$2.00B$1.53B$963.0M

FY-1$11.83B$1.77B$2.09B$1.48B

FY-2$11.11B$1.42B$1.26B$669.0M

FY-3$10.34B$1.60B$782.0M$348.0M

FY-4$8.50B$1.50B$886.0M$367.0M

PeriodGross %Op %Net %FCF %

FY0————

FY-1————

FY-2————

FY-3————

FY-4————

PeriodAssetsEquityCashDebt

FY0$17.46B$4.54B$451.0M—

FY-1$17.32B$4.53B$553.0M—

FY-2$13.09B$2.96B$413.0M—

FY-3$11.64B$2.35B$439.0M—

FY-4$12.09B$2.03B$297.0M—

PeriodOCFCapExFCFSBC

FY0$1.74B-$70.0M$963.0M—

FY-1$1.75B-$91.0M$1.48B—

FY-2$1.89B-$47.0M$669.0M—

FY-3$1.73B-$33.0M$348.0M—

FY-4$1.14B-$13.0M$367.0M—

Quarterly history (last 4)

PeriodRevenueOp IncomeNet IncomeFCF

FQ0$2.90B———

FQ-1————

FQ-2$3.02B$3.02B$3.02B—

FQ-3————

FQ-4$2.90B———

FQ-5————

FQ-6$2.87B———

FQ-7————

PeriodGross %Op %Net %FCF %

FQ0————

FQ-1————

FQ-2————

FQ-3————

FQ-4————

FQ-5————

FQ-6————

FQ-7————

PeriodAssetsEquityCashDebt

FQ0————

FQ-1————

FQ-2————

FQ-3————

FQ-4————

FQ-5————

FQ-6————

FQ-7————

PeriodOCFCapExFCFSBC

FQ0————

FQ-1————

FQ-2————

FQ-3————

FQ-4————

FQ-5————

FQ-6————

FQ-7————

Valuation

Market price—

Market cap—

Enterprise value—

P/E—

Reported non-GAAP P/E—

EV/Revenue—

EV/Op income—

EV/OCF—

P/B—

P/Tangible book—

Tangible book$4.54B

Net cash-$2.96B

Current ratio—

Debt/Equity0.8

ROA8.8%

ROE33.7%

Cash conversion1.1%

CapEx/Revenue-0.6%

SBC/Revenue—

Asset intensity—

Dilution ratio0.0%

Risk assessment

Dilution riskLow

Liquidity riskMedium

Net cash is negative after subtracting total debt.

Industry benchmarks

Activity: Entertainment Production · cohort 1 companies

MetricUMGActivity

Op margin16.0%11.3% medp25 8.1% · p75 14.5%top quartile

Net margin12.3%3.0% medp25 2.5% · p75 3.6%top quartile

Gross margin42.5%32.2% medp25 15.8% · p75 61.2%above median

CapEx / revenue-0.6%4.2% medp25 4.2% · p75 4.2%bottom quartile

Debt / equity75.0%1454.2% medp25 776.9% · p75 2131.5%bottom quartile

Observations

IR observations

Mean price target24.41 EUR

Median price target24.00 EUR

High price target31.00 EUR

Low price target15.00 EUR

Mean recommendation2.24 (1=strong buy, 5=strong sell)

Strong-buy count5.00

Buy count8.00

Hold count6.00

Sell count2.00

Strong-sell count0.00

Mean EPS estimate1.02 EUR

Last actual EPS1.03 EUR

Source data

Underlying data the analysis-pipeline pulls and audits. Fetch timestamps + content hashes show when each source was last refreshed.

Company fundamentalsperiod FQ-7 · history via verified-market-data

no public URL

2026-05-01 05:50 UTC#2e5b79ed

Source: analysis-pipeline (hybrid)Generated: 2026-05-01 05:52 UTCJob: c49d2ae3