Universal Music Group N.V. (UMG.AS) stock analysis

In our weekly check, Universal Music Group N.V. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1.

About Universal Music Group N.V.

Universal Music Group N.V. is a Communication Services company (Entertainment) based in the Netherlands, listed on AMS as UMG.AS.

What our checks show for UMG.AS

Red flags

• The gross margin fell by 6.9 points, to 38.9%: costs are rising faster than prices.

Warning signs

• Net debt is 1.3x a year of EBITDA (debt/equity 1.53). That limits room in a downturn and raises refinancing risk.
• The price swings a lot: 46.8% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 52% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Operating profit covers interest 10.3 times over.
• The net margin rose by 1.8 points over 5 years, to 12.3%.
• Analysts expect earnings per share to grow about 12.1% a year over the next years.
• Earnings per share grew 25% a year over the last 3 years.
• Net profit grew 25.2% a year over the last 3 years.
• Free cash flow is 12.9% of revenue: cash for dividends, buybacks or growth.

Similar companies

FOXA · FWONK · ROKU · LYV · WMG · TKO

Questions

What grade does Universal Music Group N.V. (UMG.AS) have?

In our weekly check, Universal Music Group N.V. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 4, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of UMG.AS stock?

This week's biggest flags for Universal Music Group N.V.: Gross margin falling, High debt, Very volatile. In total 5 of 25 checks show a warning or a red flag.

What does Universal Music Group N.V. do?

Universal Music Group N.V. is a Communication Services company (Entertainment) based in the Netherlands, listed on AMS as UMG.AS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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