Universal Music Group NVCHIX:UMGA 75 ROE % is 4.29% as of Dec. 2025, which is 90% below its 10-year median of 41.55. 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 951 Media - Diversified companies, Universal Music Group NV ranks better than 93.9% on this metric.
The historical rank and industry rank for Universal Music Group NV's ROE % or its related term are showing as below:
CHIX:UMGa'
s ROE % Range Over the Past 10 Years
Min: 29.54 Med: 41.55 Max: 59.19
Current: 32.98
During the past 9 years, Universal Music Group NV's highest ROE % was 59.19%. The lowest was 29.54%. And the median was 41.55%.
CHIX:UMGa's ROE % is ranked better than 93.9% of 951
companies
in the Media - Diversified industry
Industry Median: 2.47
vs CHIX:UMGa: 32.98
Universal Music Group NV (CHIX:UMGa) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's ROE % distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Universal Music Group NV (CHIX:UMGA) has a ROE % of 4.29% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Universal Music Group NV and its competitors. This is 90% below median its historical median of 41.55. Over the past decade, Universal Music Group NV's ROE % has ranged from 29.54 to 59.19. According to the industry distribution chart, Universal Music Group NV ranks #58 out of 951 companies in the Media - Diversified industry, placing it in the top 6.1%.
Is Universal Music Group NV's ROE % too high?
Universal Music Group NV's current ROE % of 4.29% is 90% below median its 10-year median of 41.55. Over the past 10 years, this metric has ranged from a low of 29.54 to a high of 59.19. The Media - Diversified industry median ROE % is 2.47. Universal Music Group NV's value of 4.29% is 73.7% above this industry median. Based on the distribution chart, Universal Music Group NV ranks #58 out of 951 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 ROE % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #58 out of 951 companies for ROE %. This places Universal Music Group NV in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 2.47. Universal Music Group NV's value of 4.29% is 73.7% above this benchmark. Historically, Universal Music Group NV's own ROE % has ranged from 29.54 to 59.19 over the past decade. While the company's 10-year median is 41.55 vs. the industry median of 2.47, 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 ROE % for a Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.47, based on 951 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current ROE % of 4.29% is 73.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Universal Music Group NV and its competitors. For the Media - Diversified industry, the median ROE % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current ROE % is 4.29%, which is 90% below median its own 10-year median of 41.55. 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 ROE % is 4.29%, which is 90% below median its 10-year median of 41.55 and 73.7% above the Media - Diversified industry median of 2.47. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current ROE % is 4.29% 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:
ROE %: 4.29% (90% below median its 10-year median of 41.55)
GF Value™: €27.36 vs. price of €18.11 (33.8% below fair value)
Industry Position: 73.7% above the Media - Diversified median (#58 of 951)
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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