-0.33%
10.77%
14.88%
25.65%
-0.52%
17.39%
7.33%
AI Spotlight on UMG
Company Description
Universal Music Group N.V. operates as a music company worldwide.It operates through Recorded Music, Music Publishing, and Merchandising & Other segments.The Recorded Music segment discovers and develops recording artists, as well as markets and promotes their music across various formats and platforms; and engages in the live events, sponsorship, film, and television operations.
The Music Publishing segment discovers and develops songwriters, as well as owns and administers the copyright for musical compositions used in recordings, public performances, and related uses, such as films and advertisements.The Merchandising & Other segment produces and sells artist and other branded products through various sales channels, including fashion retail, concert touring, and internet, as well as offers brand rights management services.The company has approximately 3 million recordings, 4 million owned and administered titles, and 250 artists/brands, as well as owns approximately 50 labels covering various music genres.
The company was incorporated in 2020 and is headquartered in Hilversum, the Netherlands.
Market Data
| Last Price | 26.94 |
| Change Percentage | -0.33% |
| Open | 26.84 |
| Previous Close | 27.03 |
| Market Cap ( Millions) | 49275 |
| Volume | 1791116 |
| Year High | 29.49 |
| Year Low | 19.93 |
| M A 50 | 24.28 |
| M A 200 | 24.98 |
Financial Ratios
| FCF Yield | 4.24% |
| Dividend Yield | 1.89% |
| ROE | 58.36% |
| Debt / Equity | 103.00% |
| Net Debt / EBIDTA | 83.43% |
| Price To Book | 14.65 |
| Price Earnings Ratio | 26.94 |
| Price To FCF | 23.57 |
| Price To sales | 3.41 |
| EV / EBITDA | 14.12 |
News
- Jan -27 - DeepSeek sends tech stocks tumbling, Fed rates: Catalysts
- Jan -27 - Spotify's Universal deal is a key step in streaming innovation
- Jan -26 - Universal Music Group and Spotify strike new agreement
- Jan -17 - Universal Music Group says Pershing requests UMG to move secondary listing to US
- Jan -16 - Universal Plans US Share Sale for Pershing Square Stake
- Jan -15 - Ackman's Pershing Square requests UMG to move secondary listing to US
- Jan -15 - Statement from Universal Music Group N.V.
- Dec -24 - Universal Music Group, Amazon Music announce expanded global relationship
- Dec -23 - UMG and Amazon Just Changed the Streaming Game--Here's What Investors Need to Know
- Dec -16 - Universal Buys Indie Music Specialist Downtown for $775 Million
- Dec -16 - Universal's Virgin Music Group to buy Downtown Music for $775 million
- Dec -16 - Virgin Music Group to Acquire Downtown Music
- Dec -13 - WPP, Universal Music Group partner to deepen brands’ access to music culture
- Dec -12 - Music AI Startups Get Creative to Avoid Copyright Lawsuits
- Dec -05 - Is Universal Music Group N.V.'s (AMS:UMG) Recent Stock Performance Influenced By Its Financials In Any Way?
- Dec -04 - Drake's Legal Fight Involving Kendrick Lamar Takes Center Stage – And So Do Their Mega-Mansions
- Nov -26 - Drake makes another legal move against Universal over Kendrick Lamar diss track 'Not Like Us'
- Nov -26 - Drake vs. Kendrick Lamar ‘Beef’ Escalates With Court Filings in New York and Texas
- Nov -26 - Drake alleges Universal falsely inflated popularity of Kendrick Lamar diss track 'Not Like Us'
- Nov -20 - Universal Music’s Jody Gerson says that women can learn a lot from Taylor Swift and her ‘unapologetic’ ambition
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Recorded Music
Expected Growth : 6.5 %
What the company do ?
Recorded Music from Universal Music Group N.V. refers to the production and distribution of physical and digital music content, including albums, singles, and music videos, by the world's leading music company.
Why we expect these perspectives ?
Universal Music Group N.V.'s recorded music segment growth of 6.5% is driven by increasing streaming revenue, fueled by the rise of platforms like Spotify and Apple Music. Additionally, the company's strong artist roster, strategic acquisitions, and growing demand for music in emerging markets contribute to its growth.
Segment n°2 -> Music Publishing
Expected Growth : 5.5 %
What the company do ?
Universal Music Publishing Group is a leading global music publisher, administering copyrights and managing rights for songwriters and publishers.
Why we expect these perspectives ?
Universal Music Group N.V.'s 5.5% growth in Music Publishing is driven by increasing demand for licensed music in streaming services, rising popularity of karaoke and video games, and strategic acquisitions expanding their catalog. Additionally, growth in emerging markets, such as Asia and Latin America, and the shift towards digital music consumption also contribute to this growth.
Segment n°3 -> Merchandising and Other
Expected Growth : 4.5 %
What the company do ?
Merchandising and Other from Universal Music Group N.V. refers to revenue generated from the sale of merchandise, licensing, and other non-music related activities.
Why we expect these perspectives ?
Universal Music Group N.V.'s 4.5% growth in Merchandising and Other is driven by increasing demand for artist-branded merchandise, expansion into new markets, and strategic partnerships with e-commerce platforms. Additionally, the rise of experiential events and festivals contributes to the growth, as well as the company's ability to leverage its vast music catalog and iconic brands.
Universal Music Group N.V. Products
| Product Range | What is it ? |
|---|---|
| Recorded Music | Universal Music Group N.V. is one of the largest recorded music companies in the world, with a vast catalog of music from popular artists across various genres. |
| Music Publishing | Universal Music Publishing Group is one of the largest music publishers in the world, representing a vast catalog of songs from popular artists and songwriters. |
| Merchandise | Universal Music Group N.V. offers a range of merchandise products such as T-shirts, posters, and other items featuring popular artists and bands. |
| Live Events | Universal Music Group N.V. produces and promotes live events such as concerts, festivals, and tours featuring popular artists and bands. |
| Brand Partnerships | Universal Music Group N.V. partners with brands to create branded content and experiences that connect artists and fans with brands. |
| Artist Services | Universal Music Group N.V. provides a range of services to artists, including marketing, promotion, and distribution. |
Universal Music Group N.V.'s Porter Forces
Threat Of Substitutes
Universal Music Group N.V. faces moderate threat from substitutes, as consumers have alternative options for music consumption, such as streaming services and independent artists.
Bargaining Power Of Customers
Universal Music Group N.V. has a diverse customer base, and individual customers have limited bargaining power, reducing the threat of customer bargaining power.
Bargaining Power Of Suppliers
Universal Music Group N.V. relies on a network of suppliers, including artists, producers, and distributors, which can exert some bargaining power, but the company's size and market position mitigate this threat.
Threat Of New Entrants
The music industry has high barriers to entry, including significant capital requirements and established relationships with artists and distributors, making it difficult for new entrants to compete with Universal Music Group N.V.
Intensity Of Rivalry
The music industry is highly competitive, with several major players, including Sony Music Entertainment, Warner Music Group, and independent labels, which creates a high level of rivalry and competition for Universal Music Group N.V.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 42.51% |
| Debt Cost | 6.12% |
| Equity Weight | 57.49% |
| Equity Cost | 8.50% |
| WACC | 7.49% |
| Leverage | 73.94% |
Universal Music Group N.V. : Quality Control
Universal Music Group N.V. passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| VOD.L | Vodafone Group Public Limited Company engages in telecommunication services in Europe and internationally. The company offers mobile services that enable customers to call, text, and access data; fixed line services, … |
| PUB.PA | Publicis Groupe S.A. provides marketing, communications, and digital business transformation services in North America, Europe, the Asia Pacific, Latin America, Africa, and the Middle East. The company offers advisory services … |
| VIV.PA | Vivendi SE operates as a entertainment, media, and communication company in France, the rest of Europe, the Americas, Asia/Oceania, and Africa. It operates through Canal+ Group, Havas Group, Editis, Prisma … |
| ORA.PA | Orange S.A. provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators in France and internationally. It operates through France; … |
| A3M.MC | Atresmedia Corporación de Medios de Comunicación, S.A., an audiovisual company, engages in the television, digital and multimedia development, advertising, cinema, radio, cinema, and events organization businesses in Spain and internationally. … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Atresmedia
A-Score
1-Year Total Return ->
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Vodafone
A-Score
1-Year Total Return ->
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Publicis Groupe
A-Score
1-Year Total Return ->
4
Orange
A-Score
1-Year Total Return ->
5
Universal Music
A-Score
1-Year Total Return ->
6
