Universal Music Group NV () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Universal Music Group NV

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Why is Universal Music Group NV ?

The company is Net-Debt Free

The company is Net-Debt Free

High Debt company with Weak Long Term Fundamental Strength

Flat results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,510
ROCE(HY) Lowest at 33.81%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

With ROE of 27.32%, it has a Very Expensive valuation with a 6.48 Price to Book Value

Over the past year, while the stock has generated a return of -33.43%, its profits have risen by 36% ; the PEG ratio of the company is 0.7

Below par performance in long term as well as near term

Along with generating -33.43% returns in the last 1 year, the stock has also underperformed Netherlands AEX in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Universal Music Group NV for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Universal Music Group NV

-33.24%

-1.07

33.14%

Netherlands AEX

13.29%

0.95

14.04%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.60%

EBIT Growth (5y)

12.81%

EBIT to Interest (avg)

20.57

Debt to EBITDA (avg)

1.17

Net Debt to Equity (avg)

0.47

Sales to Capital Employed (avg)

1.77

Tax Ratio

27.14%

Dividend Payout Ratio

62.18%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

32.68%

ROE (avg)

48.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.48

EV to EBIT

17.68

EV to EBITDA

14.61

EV to Capital Employed

4.47

EV to Sales

2.91

PEG Ratio

0.68

Dividend Yield

ROCE (Latest)

25.30%

ROE (Latest)

27.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET SALES(Q)

Highest at EUR 6,626 MM

OPERATING PROFIT(Q)

Highest at EUR 1,359 MM

PRE-TAX PROFIT(Q)

Highest at EUR 1,046 MM

NET PROFIT(Q)

Highest at EUR 776.7 MM

-10What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,510

ROCE(HY)

Lowest at 33.81%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.81 times

DIVIDEND PER SHARE(HY)

Lowest at EUR 4.81

INTEREST(Q)

Highest at EUR 90 MM

EPS(Q)

Lowest at EUR 0.05

Here's what is working for Universal Music Group NV

Net Sales

Highest at EUR 6,626 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (EUR MM)

Operating Profit

Highest at EUR 1,359 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (EUR MM)

Pre-Tax Profit

Highest at EUR 1,046 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (EUR MM)

Net Profit

Highest at EUR 776.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (EUR MM)

Depreciation

Highest at EUR 229 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (EUR MM)

Here's what is not working for Universal Music Group NV

Interest Coverage Ratio

Lowest at 1,510 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at EUR 90 MM

in the last five periods and Increased by 15.38% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

EPS

Lowest at EUR 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Debtors Turnover Ratio

Lowest at 4.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at EUR 4.81

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (EUR)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)