Universal Music Group NVCHIX:UMGA +1.74%75 Altman Z-Score is 0.25 as of Jul. 02, 2026, which is 54% below its 10-year median of 0.54. GuruFocus rates CHIX:UMGA with a GF Score™ of 75/100 and a GF Value™ of €27.66 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,013 Media - Diversified companies, Universal Music Group NV ranks worse than 79.07% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 0.21 is in distress zone. This implies bankruptcy possibility in the next two years.
Universal Music Group NV has a Altman Z-Score of 0.25, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Universal Music Group NV's Altman Z-Score or its related term are showing as below:
CHIX:UMGa'
s Altman Z-Score Range Over the Past 10 Years
Min: -0.2 Med: 0.54 Max: 0.84
Current: 0.21
During the past 9 years, Universal Music Group NV's highest Altman Z-Score was 0.84. The lowest was -0.20. And the median was 0.54.
Universal Music Group NV (CHIX:UMGa) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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: Altman Z-Score Comparison
For the Entertainment subindustry, Universal Music Group NV's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Universal Music Group NV's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Universal Music Group NV's Altman Z-Score falls into.
Universal Music Group NV Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Universal Music Group NV (CHIX:UMGA) has a Altman Z-Score of 0.25 as of Jul. 02, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Universal Music Group NV and its competitors. This is 54% below median its historical median of 0.54. According to the industry distribution chart, Universal Music Group NV ranks #801 out of 1013 companies in the Media - Diversified industry, placing it in the top 79.1%.
Is Universal Music Group NV's Altman Z-Score too high?
Universal Music Group NV's current Altman Z-Score of 0.25 is 54% below median its 10-year median of 0.54. The Media - Diversified industry median Altman Z-Score is 1.96. Universal Music Group NV's value of 0.25 is 87.2% below this industry median. Based on the distribution chart, Universal Music Group NV ranks #801 out of 1013 companies in the Media - Diversified industry, which is in the bottom quartile 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 Altman Z-Score compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Universal Music Group NV ranks #801 out of 1013 companies for Altman Z-Score. This places Universal Music Group NV in the lower half of its industry. The industry median Altman Z-Score is 1.96. Universal Music Group NV's value of 0.25 is 87.2% below this benchmark. While the company's 10-year median is 0.54 vs. the industry median of 1.96, Universal Music Group NV has consistently been below 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 Altman Z-Score for a Media - Diversified company?
The median Altman Z-Score among Media - Diversified companies is 1.96, based on 1,013 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Music Group NV's current Altman Z-Score of 0.25 is 87.2% below 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Universal Music Group NV and its competitors. For the Media - Diversified industry, the median Altman Z-Score is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Music Group NV's current Altman Z-Score is 0.25, which is 54% below median its own 10-year median of 0.54. 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 €27.66, compared to a current price of €18.72 — trading 32.3% below its estimated fair value. The current Altman Z-Score is 0.25, which is 54% below median its 10-year median of 0.54 and 87.2% below the Media - Diversified industry median of 1.96. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Universal Music Group NV (CHIX:UMGA), the current Altman Z-Score is 0.25 as of Jul. 02, 2026. 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 €18.72 is trading 32.3% below its estimated GF Value™ of €27.66.
GuruFocus considers Universal Music Group NV to be Possible Value Trap.
Key valuation signals for CHIX:UMGA:
Altman Z-Score: 0.25 (54% below median its 10-year median of 0.54)
GF Value™: €27.66 vs. price of €18.72 (32.3% below fair value)
Industry Position: 87.2% below the Media - Diversified median (#801 of 1013)
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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