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Universal Music Group NVCHIX:UMGA 75 3-Year ROIIC % is 3.84 as of Dec. 2025, which is 55% below its 10-year median of 8.59. GuruFocus rates CHIX:UMGA with a GF Score™ of 75/100 and a GF Value™ of €27.81 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 947 Media - Diversified companies, Universal Music Group NV ranks better than 54.59% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Universal Music Group NV's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 3.84%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Universal Music Group NV's 3-Year ROIIC % or its related term are showing as below:
CHIX:UMGa's 3-Year ROIIC % is ranked better than 54.59% of 947
companies
in the Media - Diversified industry
Industry Median: 1.36
vs CHIX:UMGa: 3.84
Universal Music Group NV (CHIX:UMGa) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Universal Music Group NV 3-Year ROIIC % Related Terms
Universal Music Group NV 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Entertainment subindustry, Universal Music Group NV's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's 3-Year ROIIC % falls into.
Universal Music Group NV 3-Year ROIIC % Calculation
Universal Music Group NV's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1580.7003 (Dec. 2025) - 1410.3474 (Dec. 2022) )
/
( 14566 (Dec. 2025) - 10130 (Dec. 2022) )
=
170.3529
/
4436
=
3.84%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Universal Music Group NV (CHIX:UMGA) has a 3-Year ROIIC % of 3.84 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Universal Music Group NV and its competitors. This is 55% below median its historical median of 8.59. Over the past decade, Universal Music Group NV's 3-Year ROIIC % has ranged from 3.84 to 13.37. According to the industry distribution chart, Universal Music Group NV ranks #430 out of 947 companies in the Media - Diversified industry, placing it in the top 45.4%.
Is Universal Music Group NV's 3-Year ROIIC % too high?
Universal Music Group NV's current 3-Year ROIIC % of 3.84 is 55% below median its 10-year median of 8.59. Over the past 10 years, this metric has ranged from a low of 3.84 to a high of 13.37. The Media - Diversified industry median 3-Year ROIIC % is 1.36. Universal Music Group NV's value of 3.84 is 182.4% above this industry median. Based on the distribution chart, Universal Music Group NV ranks #430 out of 947 companies in the Media - Diversified industry, which is above the industry midpoint. 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 3-Year ROIIC % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #430 out of 947 companies for 3-Year ROIIC %. This puts Universal Music Group NV in the upper half of its industry. The industry median 3-Year ROIIC % is 1.36. Universal Music Group NV's value of 3.84 is 182.4% above this benchmark. Historically, Universal Music Group NV's own 3-Year ROIIC % has ranged from 3.84 to 13.37 over the past decade. While the company's 10-year median is 8.59 vs. the industry median of 1.36, 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 3-Year ROIIC % for a Media - Diversified company?
The median 3-Year ROIIC % among Media - Diversified companies is 1.36, based on 947 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current 3-Year ROIIC % of 3.84 is 182.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Universal Music Group NV and its competitors. For the Media - Diversified industry, the median 3-Year ROIIC % is 1.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current 3-Year ROIIC % is 3.84, which is 55% below median its own 10-year median of 8.59. 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 €27.81, compared to a current price of €18.17 — trading 34.7% below its estimated fair value. The current 3-Year ROIIC % is 3.84, which is 55% below median its 10-year median of 8.59 and 182.4% above the Media - Diversified industry median of 1.36. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current 3-Year ROIIC % is 3.84 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 €18.17 is trading 34.7% below its estimated GF Value™ of €27.81.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
3-Year ROIIC %: 3.84 (55% below median its 10-year median of 8.59)
GF Value™: €27.81 vs. price of €18.17 (34.7% below fair value)
Industry Position: 182.4% above the Media - Diversified median (#430 of 947)
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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