Morningstar Rating
Stock XAMS Rating as of
€27.43 −0.35(1.26%)
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Company Report
Company Report
Universal Music's Size Gives It an Edge Over Most Competition
Matthew Dolgin
Spun out of Vivendi in September 2021, Universal Music is the largest of the three major global record labels, with Sony Music second and Warner Music third. Like its peers, the majority of Universal’s revenue comes from streaming, which generated 69% of total recording segment revenue in 2022, up from 54% in fiscal 2018. This percentage actually understates the overall impact of streaming, as Universal does not break out the streaming portion of publishing revenue separately.
Price vs Fair Value
Price vs Fair Value
UMG is trading at a 167% premium.
Price
€27.78
Fair Value
€66.00
Uncertainty
High
- 1-Star Price
- €11.38
- 5-Star Price
- €79.80
- Economic Moat
- Dcnsw
- Capital Allocation
- Tjycyyvwt
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Music streaming services like Spotify still have a long runway for subscriber growth and price increases, bringing more revenue into the music ecosystem for labels and artists alike.
Bears
Universal Music is overly dependent on streaming services that are diversifying their revenue streams into areas like podcasts. The streaming platforms will demand lower royalty rates in the future as their power grows.
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News
News
- Universal Music Group N.V. to Announce Financial Results for the Second Quarter and First Half Ended June 30, 2024
- Universal Music Renews Focus on Sustainability With New Team
- Universal Music Group N.V. Announces Results of its 2024 Annual General Meeting of Shareholders
- Universal Music Revenue Beats Forecasts Amid Strong Subscriptions and Streaming Growth — Update
- Universal Music Revenue Beats Forecasts Amid Strong Subscriptions and Streaming Growth
- Universal Music Group N.V. Reports Financial Results for the First Quarter Ended March 31, 2024
- Universal Music artists coming back to TikTok after licensing deal
- TikTok to Welcome Back Universal Music Artists After New Licensing Agreement — 2nd Update
Trading Information
Trading Information
- Previous Close Price
- €27.78
- Day Range
€27.41–27.88
- 52-Week Range
€20.27–29.49
- Bid/Ask
- €27.25/€27.65
- Market Cap
- €49.96 Bil
- Volume/Avg
- 958,325/1.1 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 31.90
- Price/Sales
- 4.61
- Dividend Yield (Trailing)
- 1.84%
- Dividend Yield (Forward)
- 1.94%
- Total Yield
- 1.84%
Company Profile
Company Profile
Universal Music Group is the largest of the three major global record labels, with Sony Music second and Warner Music third. Universal’s largest segment, recorded music, consists of iconic labels like Interscope, Capitol Music, Decca, EMI, and Motown and popular artists such as Drake, Taylor Swift, J Balvin, and Luke Bryan. Universal Music Publishing Group owns and administers almost 4 million compositions and is the second-largest music publisher behind Sony. Universal Music was spun out of Vivendi in September 2021, with 60% distributed to Vivendi shareholders, 20% to Tencent, 10% to Pershing Square Capital, and 10% remaining at Vivendi.
- Sector
- Communication Services
- Industry
- Entertainment
- Stock Style Box
- Large Growth
- Total Number of Employees
- 10,290
- Website
- https://www.universalmusic.com
Competitors
Competitors
- Sony Group Corp 6758
- Spotify Technology SA SPOT
- Warner Music Group Corp Ordinary Shares - Class A WMG
Valuation
Valuation
| Metric | UMG | 6758 | SPOT |
|---|---|---|---|
Price/Earnings (Normalized) | 31.90 | 18.83 | 233.60 |
Price/Book Value | 17.08 | 2.21 | 17.48 |
Price/Sales | 4.61 | 1.30 | 4.12 |
Price/Cash Flow | 31.39 | 8.77 | 109.70 |
Price/Earnings
UMG
6758
SPOT
Financial Strength
Financial Strength
| Metric | UMG | 6758 | SPOT |
|---|---|---|---|
Quick Ratio | 0.43 | 0.44 | 1.38 |
Current Ratio | 0.62 | 0.66 | 1.42 |
Interest Coverage | 16.96 | 31.03 | −4.75 |
Quick Ratio
UMG
6758
SPOT
Profitability
Profitability
| Metric | UMG | 6758 | SPOT |
|---|---|---|---|
Return on Assets (Normalized) | 12.87% | 2.86% | 4.57% |
Return on Equity (Normalized) | 60.80% | 13.24% | 14.73% |
Return on Invested Capital (Normalized) | 30.80% | 8.27% | 6.53% |
Return on Assets
UMG
6758
SPOT
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Entertainment Industry Comparables
Entertainment Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| Netflix Inc NFLX | Jmmywxgps | Lpwhbl | $290.8 Bil | |||
| The Walt Disney Co DIS | Bbjmyzqds | Cpm | $181.0 Bil | |||
| Live Nation Entertainment Inc LYV | Kftvgdcz | Gmrzyjq | $21.7 Bil | |||
| Warner Bros. Discovery Inc Ordinary Shares - Class A WBD | Frnnymjkp | Rzgmn | $18.2 Bil | |||
| Warner Music Group Corp Ordinary Shares - Class A WMG | Zvbkxjjtys | Kdqgty | $15.9 Bil | |||
| News Corp Class A NWSA | Hlymwgzyn | Spsf | $15.8 Bil | |||
| News Corp Class B NWS | Nmbhmbvd | Lvgyt | $15.8 Bil | |||
| Fox Corp Class A FOXA | Wttyvrp | Jcg | $15.5 Bil | |||
| Fox Corp Class B FOX | Plbjjsss | Wzzk | $15.5 Bil | |||
| Sirius XM Holdings Inc SIRI | Cpsggsbmnj | Vwbck | $10.9 Bil |
