Universal Music Group NVCHIX:UMGA 75 Net Margin % is 1.52% as of Dec. 2025, which is 88% below its 10-year median of 12.92. GuruFocus rates CHIX:UMGA with a GF Score™ of 75/100 and a GF Value™ of €27.61 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,024 Media - Diversified companies, Universal Music Group NV ranks better than 85.25% on this metric.
The historical rank and industry rank for Universal Music Group NV's Net Margin % or its related term are showing as below:
CHIX:UMGa'
s Net Margin % Range Over the Past 10 Years
Min: 7.56 Med: 12.92 Max: 18.38
Current: 12.26
CHIX:UMGa's Net Margin % is ranked better than 85.25% of 1024
companies
in the Media - Diversified industry
Industry Median: 1.225
vs CHIX:UMGa: 12.26
Universal Music Group NV (CHIX:UMGa) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Universal Music Group NV Net Margin % Related Terms
Universal Music Group NV Net Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CHIX:UMGA vs NFLX, DIS, WBD: Net Margin % Comparison
For the Entertainment subindustry, Universal Music Group NV's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Universal Music Group NV Net Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's Net Margin % distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Universal Music Group NV (CHIX:UMGA) has a Net Margin % of 1.52% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Universal Music Group NV and its competitors. This is 88% below median its historical median of 12.92. Over the past decade, Universal Music Group NV's Net Margin % has ranged from 7.56 to 18.38. According to the industry distribution chart, Universal Music Group NV ranks #151 out of 1024 companies in the Media - Diversified industry, placing it in the top 14.7%.
Is Universal Music Group NV's Net Margin % too high?
Universal Music Group NV's current Net Margin % of 1.52% is 88% below median its 10-year median of 12.92. Over the past 10 years, this metric has ranged from a low of 7.56 to a high of 18.38. The Media - Diversified industry median Net Margin % is 1.23. Universal Music Group NV's value of 1.52% is 24.1% above this industry median. Based on the distribution chart, Universal Music Group NV ranks #151 out of 1024 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Universal Music Group NV has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Universal Music Group NV's Net Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #151 out of 1024 companies for Net Margin %. This places Universal Music Group NV in the top 15% of its industry — outperforming the majority of peers. The industry median Net Margin % is 1.23. Universal Music Group NV's value of 1.52% is 24.1% above this benchmark. Historically, Universal Music Group NV's own Net Margin % has ranged from 7.56 to 18.38 over the past decade. While the company's 10-year median is 12.92 vs. the industry median of 1.23, Universal Music Group NV has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Media - Diversified company?
The median Net Margin % among Media - Diversified companies is 1.23, based on 1,024 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current Net Margin % of 1.52% is 24.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Universal Music Group NV and its competitors. For the Media - Diversified industry, the median Net Margin % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current Net Margin % is 1.52%, which is 88% below median its own 10-year median of 12.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Music Group NV stock overvalued right now?
Based on GuruFocus' analysis, Universal Music Group NV (CHIX:UMGA) is currently considered Possible Value Trap. The stock's GF Value™ is €27.61, compared to a current price of €18.11 — trading 34.4% below its estimated fair value. The current Net Margin % is 1.52%, which is 88% below median its 10-year median of 12.92 and 24.1% above the Media - Diversified industry median of 1.23. Universal Music Group NV's overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current Net Margin % is 1.52% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Universal Music Group NV (CHIX:UMGA) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Music Group NV stock appears to be undervalued.
The current stock price of €18.11 is trading 34.4% below its estimated GF Value™ of €27.61.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
Net Margin %: 1.52% (88% below median its 10-year median of 12.92)
GF Value™: €27.61 vs. price of €18.11 (34.4% below fair value)
Industry Position: 24.1% above the Media - Diversified median (#151 of 1024)
No single metric tells the full story. See the CHIX:UMGA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Music is the largest of the three major record companies. Recorded music accounts for most of the firm's revenue, with the segment housing more than a dozen record labels, including notable names like Interscope, Capital Music, Motown Records, and Def Jam. Some of the most successful current artists signed to record deals with Universal include Taylor Swift, Drake, The Weeknd, and Morgan Wallen. Most of Universal's remaining sales come from its publishing segment, which generates revenue for songwriters and composers, including some of Universal's recording artists as well as songwriters and composers who do not record music themselves or are attached to other labels. Universal's publishing group has nearly 4.5 million owned or administered titles in its catalog.
75GF Score
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