Universal Music's third-quarter earnings were not stellar, but margins and subscription streaming sales growth rose sharply after last quarter's weakness prompted a dramatic stock selloff and fear about Universal's positioning.
Talent will always be at the core of music industry sales. Record labels are critical for artists to maximize success, and Universal is best positioned.
If AI-created music gains traction with consumers, it will diminish the share of listening that real talent provides. Favorable near-term AI agreements for record labels cannot negate the long-term impact of fewer human artists.
|
Metric
|
UMG
|
WMG
|
6758
|
|---|---|---|---|
Price/Earnings (Normalized) | 24.80 | 16.89 | 21.34 |
Price/Book Value | 8.39 | 19.07 | 2.78 |
Price/Sales | 2.43 | 2.23 | 1.87 |
Price/Cash Flow | 18.67 | 14.56 | 10.64 |
|
Metric
|
UMG
|
WMG
|
6758
|
|---|---|---|---|
Quick Ratio | 0.41 | 0.50 | 0.82 |
Current Ratio | 0.61 | 0.73 | 1.25 |
Interest Coverage | 3.83 | 5.90 | 36.37 |
|
Metric
|
UMG
|
WMG
|
6758
|
|---|---|---|---|
Return on Assets (Normalized) | 10.46% | 8.63% | 5.03% |
Return on Equity (Normalized) | 43.42% | 123.99% | 14.71% |
Return on Invested Capital (Normalized) | 23.03% | 18.04% | 11.68% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Netflix Inc
NFLX
| LOCK|^%FMhNLS | LOCK|k>zs | $264B | |||
| The Walt Disney Co
DIS
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LYV
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SKYD
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| Fox Corp Class A
FOXA
| LOCK|xZJY<zY | LOCK|rB | $27B | |||
| Fox Corp Class B
FOX
| LOCK|n<J@&^<n | LOCK|$WL | $27B | |||
| Roku Inc Class A
ROKU
| LOCK|&gll>nhj | LOCK|TKG | $24B | |||
| News Corp Class A
NWSA
| LOCK|$?<<sv! | LOCK|<P | $16B | |||
| News Corp Class B
NWS
| LOCK|$$y#>t | LOCK|^k! | $16B | |||
| Warner Music Group Corp Ordinary Shares - Class A
WMG
| LOCK|&mvsyq | LOCK|?J>^p | $16B |
United States