Universal Music Group NVCHIX:UMGA 75 ROA % is 1.13% as of Dec. 2025, which is 89% below its 10-year median of 10.55. GuruFocus rates CHIX:UMGA with a GF Score™ of 75/100 and a GF Value™ of €27.36 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,035 Media - Diversified companies, Universal Music Group NV ranks better than 88.5% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Universal Music Group NV's annualizedNet Income for the quarter that ended in Dec. 2025 was €202 Mil.
Universal Music Group NV's average Total Assets over the quarter that ended in Dec. 2025 was €17,879 Mil. Therefore, Universal Music Group NV's annualized ROA % for the quarter that ended in Dec. 2025 was 1.13%.
The historical rank and industry rank for Universal Music Group NV's ROA % or its related term are showing as below:
CHIX:UMGa'
s ROA % Range Over the Past 10 Years
Min: 6.59 Med: 10.55 Max: 13.72
Current: 8.66
During the past 9 years, Universal Music Group NV's highest ROA % was 13.72%. The lowest was 6.59%. And the median was 10.55%.
CHIX:UMGa's ROA % is ranked better than 88.5% of 1035
companies
in the Media - Diversified industry
Industry Median: 0.65
vs CHIX:UMGa: 8.66
Universal Music Group NV (CHIX:UMGa) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Entertainment subindustry, Universal Music Group NV's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's ROA % distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Universal Music Group NV (CHIX:UMGA) has a ROA % of 1.13% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Universal Music Group NV and its competitors. This is 89% below median its historical median of 10.55. Over the past decade, Universal Music Group NV's ROA % has ranged from 6.59 to 13.72. According to the industry distribution chart, Universal Music Group NV ranks #119 out of 1035 companies in the Media - Diversified industry, placing it in the top 11.5%.
Is Universal Music Group NV's ROA % too high?
Universal Music Group NV's current ROA % of 1.13% is 89% below median its 10-year median of 10.55. Over the past 10 years, this metric has ranged from a low of 6.59 to a high of 13.72. The Media - Diversified industry median ROA % is 0.65. Universal Music Group NV's value of 1.13% is 73.8% above this industry median. Based on the distribution chart, Universal Music Group NV ranks #119 out of 1035 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 ROA % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #119 out of 1035 companies for ROA %. This places Universal Music Group NV in the top 12% of its industry — outperforming the majority of peers. The industry median ROA % is 0.65. Universal Music Group NV's value of 1.13% is 73.8% above this benchmark. Historically, Universal Music Group NV's own ROA % has ranged from 6.59 to 13.72 over the past decade. While the company's 10-year median is 10.55 vs. the industry median of 0.65, 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 ROA % for a Media - Diversified company?
The median ROA % among Media - Diversified companies is 0.65, based on 1,035 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current ROA % of 1.13% is 73.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Universal Music Group NV and its competitors. For the Media - Diversified industry, the median ROA % is 0.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current ROA % is 1.13%, which is 89% below median its own 10-year median of 10.55. 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 €27.36, compared to a current price of €18.11 — trading 33.8% below its estimated fair value. The current ROA % is 1.13%, which is 89% below median its 10-year median of 10.55 and 73.8% above the Media - Diversified industry median of 0.65. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current ROA % is 1.13% 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 33.8% below its estimated GF Value™ of €27.36.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
ROA %: 1.13% (89% below median its 10-year median of 10.55)
GF Value™: €27.36 vs. price of €18.11 (33.8% below fair value)
Industry Position: 73.8% above the Media - Diversified median (#119 of 1035)
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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