UNIVERSAL MUSIC GROUP (UMG-AE)

Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

Last Close Avg Daily Vol 52-Week High Trailing PE Annual Div ROE LTG Forecast 1-Mo Return
19.35 (EUR) 2.4M 24.13 45.0 0.51 35.7% 10.4% 1.3%
2023 June 22
Market Cap 52-Week Low Forward PE Dividend Yield Annual Rev Inst Own 3-Mo Return
EURONEXT AMSTERDAM
Exchange 35.2B 16.65 23.5 2.6% 10.3B 29.7% -12.9%

AVERAGE SCORE
NEGATIVE OUTLOOK: UMG's current score of Score Averages
3 places it among the bottom quartile of stocks Media & Publishing Group: 5.0 Large Market Cap: 6.9
scored. Cyclical Consumer Services Sector: 5.7 AEX Index: 6.7

Average Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive AJAX 4 6 7 8 8
FLE 6 6 8 8 8
Neutral BFIT 2 7 5 6 7
BRILL 3 8 3 3 4
Negative
UMG 4 5 3 4 3
2020-06 2021-06 2022-06 2023-06

HIGHLIGHTS I/B/E/S MEAN

- During the past three months, the score category for Universal
Music Group dropped from Neutral to Negative. Buy Mean recommendation from all analysts covering
20 Analysts the company on a standardized 5-point scale.
- The recent change in the Average Score was primarily due to a
decline in the Price Momentum component score.
Strong Strong
Sell Hold Buy
Sell Buy

PRICE AND VOLUME CHARTS

1-Year Return: 4.6% 5-Year Return: --

BUSINESS SUMMARY
Universal Music Group NV is a company based in the Netherlands which is mainly engaged in music entertainment. The Company is focused on the
discovery and development of artists and songwriters and the marketing, promotion, distribution, sales and licensing of audio and audio-visual content.
Universal Music Group N.V. includes music publishing companies Universal Music Publishing Group. Its recorded music catalog consists more than
three million recordings includes a wide array of performers such as ABBA, Louis Armstrong, The Beatles, The Beach Boys, The Bee Gees, Ariana
Grande, Imagine Dragons, Lady Gaga, James Brown, Bon Jovi, Neil Diamond, Marvin Gaye, Drake, Billie Eilish, Eminem, Selena Gomez Guns N'
Roses, Elton John, Bob Marley, Paul McCartney, Nirvana, Luciano Pavarotti, Queen, The Rolling Stones, Frank Sinatra, U2, Amy Winehouse and
Stevie Wonde,r among others.

Page 1 of 11
© 2023 Refinitiv. All rights reserved.
UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

INDICATOR COMPONENTS
The AVERAGE SCORE combines the quantitative analysis of five widely-used investment decision making tools: Earnings,
Fundamental, Relative Valuation, Risk, and Price Momentum. A simple average of the underlying component ratings is normally
distributed to rank stocks on a 1-10 scale (10 being awarded to the most favorable). These factors may be evaluated differently using
alternative methodologies and the importance of individual factors varies across industries, market capitalization and investment styles.
Additional criteria should always by used to evaluate a stock.

Earnings Fundamental Relative Valuation Risk Price Momentum

PEER ANALYSIS Currency in EUR

PRICE MOMENTUM VALUATION FUNDAMENTAL ANALYSTS

Average Price 1-Mo 3-Mo 1-Yr Market Trailing Forward Dividend Net LTG I/B/E/S # of
Score Ticker (2023-06-22) Return Return Return Cap PE PE Yield Margin Forecast Mean Analysts
3 UMG 19.35 1.3% -12.9% 4.6% 35.2B 45.0 23.5 2.6% 7.6% 10.4% Buy 20

8 FLE 9.05 -1.6% 0.56% -17.7% 3.7B -- 12.6 4.0% -2.5% -- Hold 5

7 BFIT 34.36 -9.1% -5.2% -5.2% 2.3B -- 42.5 -- -0.5% -- Buy 10

8 AJAX 11.50 4.1% 4.5% -3.0% 211M -- -- -- 25.7% -- Buy 1

4 SNOW 10.50 0.00% -3.7% -13.2% 41M -- -- -- -73.6% -- -- --

4 BRILL 19.80 -2.0% -6.6% -16.1% 37M -- 12.5 -- -7.2% -- Strong Buy 1

NR TBIRD 0.06 7.1% 41.2% 11.8% 2M -- -- -- -- -- -- --

5.7 Average 14.95 -0.03% 2.6% -5.5% 5.9B 45.0 22.8 3.3% -8.4% 10.4% Buy 7.4

PEER COMPANIES
AJAX AFC Ajax FLE FL Entertainment
BFIT Basic Fit SNOW SnowWorld
BRILL Koninklijke Brill TBIRD Thunderbird Resorts Inc

Page 2 of 11
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UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

EARNINGS Currency in EUR

NEUTRAL OUTLOOK: Mixed earnings Earnings Score Averages

expectations and performance. Media & Publishing Group: 5.0 Large Market Cap: 6.2
Cyclical Consumer Services Sector: 5.7 AEX Index: 6.7

Earnings Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive BFIT 8 10 4 3 7
BRILL 4 7 2 2 6
Neutral UMG NR 5 3 4 4
AJAX NR NR NR NR NR
Negative
FLE NR NR NR NR NR
2020-06 2021-06 2022-06 2023-06

EARNINGS INDICATORS
Earnings Surprises Estimate Revisions Recommendation Changes
(33.3% weight) (33.3% weight) (33.3% weight)

BFIT
UMG

AJAX
BRILL
BRILL BFIT
FLE
UMG

BFIT UMG

AJAX AJAX
FLE BRILL
FLE

Last 4 Years Last 4 Weeks Last 120 Days

# Positive Surprises (>2%) 2 # Up Revisions 1 # Broker Upgrades 0
# Negative Surprises (<-2%) 0 # Down Revisions 1 # Broker Downgrades 1
# In-Line Surprises (within 2%) 0 Avg Up Revisions 5.0%
Avg Surprise 4.3% Avg Down Revisions -5.0%

HIGHLIGHTS PRICE TARGET

- Universal Music Group currently has an Earnings Rating of 4, with two The chart indicates where analysts predict the stock price will be within
of three components rated as a bearish 4 or less. The average the next 12 months, as compared to the current price.
Earnings Rating for its Entertainment Production industry is 4.0 and
the AMSTERDAM EXCHANGE index average is 6.7. 33.00 12-Month Price Target
HIGH Mean (EUR) 24.80
30.00
High 31.00
27.00
Low 18.10
MEAN
24.00 Target vs. Current 28.2%
21.00 19.35 # of Analysts 18
18.00 LOW
Current Price Price Target
(EUR)

Page 3 of 11
© 2023 Refinitiv. All rights reserved.
UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

EARNINGS PER SHARE

Actuals Estimates

Earnings per share (EPS) is calculated Quarterly -- --

by dividing a company's earnings by the Mean -- --
number of shares outstanding. Analysts Quarterly data is not available
tend to interpret a pattern of increasing High -- --
earnings as a sign of strength and flat Low -- --
or falling earnings as a sign of
# of Analysts -- --
weakness.

The charts provide a comparison NA NA NA NA

between a company's actual and
estimated EPS, including the high and Actuals Estimates
low forecasts. 1.400

1.200 Annual 2023 2024

HIGH Mean 0.828 0.938
1.000
0.800 MEAN High 1.010 1.080
0.800 0.700 LOW
Low 0.500 0.800
0.600 # of Analysts 18 18

0.400
2021 2022 2023 2024

MEAN ESTIMATE TREND ANALYST RECOMMENDATIONS

Q Q Y Y Price I/B/E/S Mean: Buy (20 Analysts)
-- -- 2023 2024 Target
Strong Buy 5
Current -- -- 0.828 0.938 24.80
30 Days Ago -- -- 0.827 0.944 25.40 Buy 10
90 Days Ago -- -- 0.820 1.058 26.00 Hold 2
% Change (90 Days) -- -- 1.0% -11.3% -4.6%
Sell 3
Current Fiscal Year End: 23-12
Strong Sell 0
Next Expected Report Date: 2023-07-27

EARNINGS SURPRISES
Comparing a company's actual earnings to the mean expectation of Surprise Detail (Last 6 Periods)
analysts results in a difference referred to as a 'positive' or 'negative'
surprise. Research has shown that when a company reports a Surprise Announce Period End Actual Mean Surprise
surprise, it is often followed by more of the same surprise type. Type Date Date EPS EPS (%)
Surprise Summary (Last 6 Years) Positive 2023-03-02 2022-12-31 0.800 0.784 2.0%
Positive 2022-03-03 2021-12-31 0.700 0.657 6.5%
Surprise Type Amount Percent
Positive Years (> 2%) 2 100.0%
Negative Years (< -2%) 0 --
In-Line Years (within 2%) 0 --

ANNUAL REVENUE
A pattern of increasing sales in Actuals Estimates
conjunction with a rising EPS may
influence a buy recommendation, while 13B
2023 2024
flat or falling sales and faltering 12B
HIGH
earnings may explain a sell MEAN Mean 10.9B 11.7B
recommendation. A rising EPS with flat LOW
11B 10.3B High 11.3B 12.2B
or falling sales may result from
increased cost efficiency and margins, 10B
Low 10.5B 11.3B
rather than market expansion. This Forecasted Growth 5.0% 13.3%
chart shows the sales forecast trend of 9B 8.5B
# of Analysts 19 19
all analysts and the highest and lowest
projections for the current and next 8B
2021 2022 2023 2024
fiscal year.

Page 4 of 11
© 2023 Refinitiv. All rights reserved.
UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

FUNDAMENTAL
NEUTRAL OUTLOOK: Fundamentals relatively Fundamental Score Averages
in-line with the market. Media & Publishing Group: 5.3 Large Market Cap: 6.3
Cyclical Consumer Services Sector: 5.0 AEX Index: 5.9

Q2 Q3 Q4 Q1
Fundamental Score Trend Peers 2022 2022 2022 2023 Current 3Y Trend
FLE NR NR NR NR 8
Positive
BFIT 1 1 1 NR 7
Neutral UMG NR NR NR NR 7

Negative AJAX NR NR NR NR 6

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 BRILL NR NR NR NR 1
2020 2021 2022

FUNDAMENTAL INDICATORS
Profitability Debt Earnings Quality Dividend
(25% weight) (25% weight) (25% weight) (25% weight)

FLE
AJAX
BFIT FLE
BFIT
UMG

UMG UMG AJAX

FLE AJAX BRILL

BFIT UMG
BRILL BRILL AJAX
FLE BRILL

BFIT

Revenue Growth 21.6% Current Ratio 0.6 Oper. Cash Yield 116.2% Dividend Growth 27.5%
For year over year For interim period For latest 12 months For year over year
ending 2022-12 ending 2022-12 ending -- ending 2022-12
Gross Margin 40.6% Debt-to-Capital 38.3% Accruals -8.5% Dividend Payout 81.9%
For latest 12 months For annual period For latest 12 months For latest 12 months
ending 2022-12 ending 2022-12 ending 2022-12 ending 2021-12
Return On Equity 35.7% Interest Funding 2.5% Days Sales In Inv. 8.3 Dividend Coverage 2.0
For interim period For interim period For annual period For annual period
ending 2022-12 ending 2022-12 ending 2022-12 ending 2022-12
Net Margin 7.6% Interest Coverage 18.2 Days Sales In Rec. 67.5 Current Div. Yield 2.6%
For latest 12 months For interim period For annual period For latest 12 months
ending 2022-12 ending 2022-12 ending 2022-12 ending 2023-06

HIGHLIGHTS
- Universal Music Group currently has a Fundamental Rating of 7. The - UMG's current accruals ratio is substantially below its five-year
average Fundamental Rating for its Media & Publishing industry group average of 11.7%.
is 5.3 and the AMSTERDAM EXCHANGE index average is 5.9. - Of the 3 firms within the Media & Publishing industry group, Universal
- UMG's current net margin of 7.6% is substantially below its five-year Music Group is among 2 companies that pay a dividend. The stock's
average of 13.0%. dividend yield is currently 2.6%.
- UMG's current ratio of 0.6 is below its five-year average of 0.7.

Page 5 of 11
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UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

RELATIVE VALUATION
NEGATIVE OUTLOOK: Multiples significantly Relative Valuation Score Averages
above the market or the stock's historic norms. Media & Publishing Group: 5.7 Large Market Cap: 4.8
Cyclical Consumer Services Sector: 5.6 AEX Index: 4.9

Relative Valuation Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive AJAX 5 8 8 7 8
BRILL 5 7 8 8 8
Neutral FLE 7 8 7 7 7
BFIT 3 3 3 3 3
Negative
UMG 2 2 2 2 2
2020-06 2021-06 2022-06 2023-06

RELATIVE VALUATION INDICATORS

Price to Sales Trailing PE Forward PE
(33.3% weight) (33.3% weight) (33.3% weight)

BRILL

AJAX
FLE BRILL
BFIT FLE
UMG

BFIT
UMG
UMG

AJAX AJAX
BFIT
BRILL
FLE

Price to Sales 3.6 Trailing PE 45.0 Forward PE 23.5

5-Yr Average 4.6 5-Yr Average 41.7 5-Yr Average 29.0
Rel. to 5-Yr Avg. 22% Discount Rel. to 5-Yr Avg. 8% Premium Rel. to 5-Yr Avg. 19% Discount
AEX Index 1.5 AEX Index 12.0 AEX Index 15.7
Rel. to AEX >100% Premium Rel. to AEX >100% Premium Rel. to AEX 50% Premium

HIGHLIGHTS
- Universal Music Group currently has a Relative Valuation Rating of 2 - UMG's Trailing P/E of 45.0 represents a 8% Premium to its 5-year
which is significantly below the AMSTERDAM EXCHANGE index average of 41.7.
average rating of 4.9. - UMG's Forward P/E of 23.5 represents a 19% Discount to its 5-year
- UMG is currently valued at a premium to the AMSTERDAM average of 29.0.
EXCHANGE index based on Price to Sales ratio, Trailing P/E, and
Forward P/E.
- UMG's Price to Sales ratio of 3.6 represents a 22% Discount to its 5-
year average of 4.6.

Page 6 of 11
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UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

PRICE TO SALES TRAILING PE

The most recent week's close price divided by the revenue per share. The most recent week's close price divided by the sum of the four most
recently reported quarterly earnings.
Price to Sales: 3.6 Trailing PE: 45.0
5-Year Average: 4.6 5-Year Average: 41.7
AEX Index Average: 1.5 AEX Index Average: 12.0
Media & Publishing Group Average: 2.8 Media & Publishing Group Average: 56.3
6.3 >50
6.0 45
5-Yr Average
5.7 40
5.4 35
5.1 30
4.8 25
5-Yr Average
4.5 20
4.2 15
3.9 10
3.6 5
3.3 0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

FORWARD PE FORWARD PEG

The most recent week's close price divided by the sum of the four The Forward P/E divided by the five-year forecasted growth rate.
upcoming quarterly consensus estimates.
Forward PE: 23.5 Forward PEG: 2.3
5-Year Average: 29.0 5-Year Average: 2.0
AEX Index Average: 15.7 AEX Index Average: 1.4
Media & Publishing Group Average: 21.7 Media & Publishing Group Average: 2.1
50 3.0
45 2.8
40 2.6
35 2.4
30 5-Yr Average 2.2
25 2.0 5-Yr Average
20 1.8
15 1.6
10 1.4
5 1.2
0 1.0
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022

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UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

RISK
NEUTRAL OUTLOOK: Moderate risk (medium Risk Score Averages
volatility). Media & Publishing Group: 6.7 Large Market Cap: 7.6
Cyclical Consumer Services Sector: 6.2 AEX Index: 7.3

Risk Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive FLE 9 10 8 8 8
AJAX 8 5 7 7 7
Neutral BRILL 5 7 6 6 6
UMG 6 9 7 6 6
Negative
BFIT 1 3 3 3 5
2020-06 2021-06 2022-06 2023-06

RISK INDICATORS
Magnitude of Returns Volatility Beta (1-year) Correlation
(25% weight) (25% weight) (25% weight) (25% weight)

AJAX
FLE
FLE FLE BFIT
BRILL
UMG

AJAX
BFIT BFIT UMG
AJAX
BRILL UMG BRILL
BRILL

UMG AJAX
BFIT FLE

Daily Returns (Last 90 Days) Standard Deviation Beta vs. AEX 0.95 Correlation vs. AEX
Best 2.5% Last 90 Days 1.67 Positive Days Only 1.30 Last 90 Days 23%
Worst -6.6% Last 60 Months 8.86 Negative Days Only 0.60 Last 60 Months 65%
Monthly Returns (Last 60 Months) Intra-Day Swing (Last 90 Days) Beta vs. Group 1.00 Correlation vs. Group
Best 17.5% Average 2.0% Positive Days Only 1.11 Last 90 Days 73%
Worst -12.5% Largest 6.9% Negative Days Only 0.82 Last 60 Months 84%

HIGHLIGHTS RISK ANALYSIS

- Universal Music Group currently has a Risk Rating of 6 while Last 90 Days Last 60 Months
the AMSTERDAM EXCHANGE index has an average rating of Best Worst # # Largest Best Worst
7.3. Daily Daily Days Days Intra-Day Monthly Monthly
- On days when the market is up, UMG tends to outperform the Peers Return Return Up Down Swing Return Return
AMSTERDAM EXCHANGE index. However, on days when the UMG 2.5% -6.6% 30 30 6.9% 17.5% -12.5%
market is down, the shares generally decrease by less than the
index. AJAX 3.2% -3.9% 26 26 4.8% 15.3% -17.8%
- In the short term, UMG has shown average correlation (>= 0.2 BFIT 2.7% -4.1% 30 32 5.6% 46.6% -49.9%
and < 0.4) with the AMSTERDAM EXCHANGE index. The
stock has, however, shown high correlation (>= 0.4) with the BRILL 6.1% -7.3% 19 18 10.8% 23.6% -27.0%
market in the long term.
FLE 3.5% -4.0% 20 20 6.3% 11.5% -16.5%
- Over the last 90 days, the daily price fluctuations of UMG have
been in-line with the AMSTERDAM EXCHANGE index firms. AEX 1.7% -1.9% 35 27 2.2% 13.5% -10.4%

Page 8 of 11
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UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

PRICE MOMENTUM Currency in EUR

NEGATIVE OUTLOOK: Weak recent price Price Momentum Score Averages

performance or entering historically poor Media & Publishing Group: 3.0 Large Market Cap: 6.9
seasonal period. Cyclical Consumer Services Sector: 5.7 AEX Index: 6.7

Price Momentum Score Trend (4-Week Moving Avg) Peers -6M -3M -1M -1W Current 1Y Trend

Positive BFIT 3 8 10 10 9
AJAX 2 4 4 7 8
Neutral FLE 2 1 8 6 5
BRILL 1 7 4 4 3
Negative
UMG 6 5 3 2 1
2020-06 2021-06 2022-06 2023-06

PRICE MOMENTUM INDICATORS

Relative Strength Seasonality
(50% weight) (50% weight)

AJAX
BFIT

BFIT
BRILL
FLE
AJAX

UMG BRILL

FLE
UMG

Relative Strength Indicator (Scale from 1 to 100) Average Monthly Return (Last 10 Years)
UMG Industry Avg Jun Jul Aug
Last 10 Days 48 53 Company Avg -8.4% 13.2% -10.2%
Last 50 Days 45 48 Industry Avg -- -- --
Last 200 Days 48 48 Industry Rank -- -- --

PRICE PERFORMANCE
Daily close prices are used to calculate the UMG UMG AEX
performance of the stock as compared to a
AEX Close Price (2023-06-22) 19.35 757
relevant index over five time periods.
52-Week High 24.13 773
-3.9%
1-Week 52-Week Low 16.65 631
-2.1%

1-Month
1.3% - The Price Momentum Rating of 1 for Universal Music Group is
-1.2% its lowest value for the past year.
- On 2023-06-22, UMG closed at 19.35, 19.8% below its 52-
-12.9% week high and 16.2% above its 52-week low.
3-Month
1.8%
- UMG shares are currently trading 0.70% below their 50-day
-14% moving average of 19.48, and 8.3% below their 200-day
YTD moving average of 21.10.
9.8%

4.6%
1-Year
19%

Page 9 of 11
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UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

DETAILED STOCK REPORT TIPS Mean Estimate Trend

The mean estimates show how the consensus has changed over the past 30 days
and 90 days for the upcoming two quarters (when available) and two years. The
The Stock Report from Refinitiv is a comprehensive, company-specific analysis that percentage change is calculated for the company as a means for comparison by
includes a proprietary Stock Rating along with underlying component indicators and measuring the difference between the current consensus estimate and that of 90
supportive data elements. The report is updated daily, although some of the data days ago.
elements and the ratings are updated weekly.
Analyst Recommendations
Average Score The I/B/E/S Mean is the average recommendation of all analysts covering the stock,
The Stock Reports Plus Average Score combines a quantitative analysis of five as provided by I/B/E/S, the Institutional Brokers Estimate System, from Refinitiv.
widely-used investment decision making tools - Earnings, Fundamental, Relative The recommendations are presented on a five-point standardized scale: strong buy,
Valuation, Risk, and Price Momentum. First, a simple average of the five underlying buy, hold, sell, and strong sell.
component ratings is calculated. Then, a normal distribution is used to rank each
stock across the market on a scale of 1 to 10, with 10 being most favorable. A Earnings Surprises
score of 8 to 10 is considered positive, 4 to 7 is neutral, and 1 to 3 is negative. ● The surprise summary includes the total number of time periods (and
These five factors may be evaluated differently using alternative methodologies, percentage) in the last 12 quarters (quarterly) or last 4 years (annual) in which
and the importance of individual factors varies across industry groups, market earnings surprises were positive, negative, or in-line. In order to be recognized
capitalization and investment styles. Additional criteria should always be used to as a positive or negative surprise, the percent must be greater than 2% above or
evaluate a stock. 2% below the consensus, respectively.
● The surprise detail section includes a listing of the company's quarterly earnings
A company must have sufficient data available for at least three of the five reported for the most recent 6 periods (quarters or years). The consensus
component indicators in order to receive an overall Average Score. Approximately analyst estimate is provided to determine if the actual earnings report
85% of the stocks within the coverage universe meet the criteria to generate a represented a positive surprise, negative surprise, or in-line result.
score.
Fundamental
Indicator Components The Fundamental Rating is based on a combination of four fundamental component
The five indicators that comprise the stock rating are displayed. Like the stock factors: profitability, debt, earnings quality, and dividend. Companies that do not
rating, the component rating scale is 1 to 10, with 10 being best. A company will pay a dividend are not penalized. Each factor is equally weighted. Then, equal
receive an ‘NR’ for No Rating if the required data elements or criteria are not met. A deciles are used to rank each stock across the market on a scale of 1 to 10, with 10
detailed section for each component is included in the report. being most favorable. A stock needs to have at least two of the four fundamental
factors present in order to receive a score.
Indicator Trends
Within each component section, historical score trends are displayed, typically using ● Profitability is comprised of four data elements.
a 4-week moving average over a timeframe of the past three years. The dotted - Revenue Growth: (Net Sales – Previous Net Sales) / Previous Net Sales
orange line indicates the average of the scores over those three years. The most - Gross Margin: Gross Profit / Net Sales
recent occurrences of the best and worst scores are also displayed on the chart in - Return on Equity: Net Income / Total Equity
grey boxes to put the current score into historical context. - Net Margin: Net Profit / Net Sales
● Debt is comprised of four data elements.
Next to the trend chart for the company, current score averages are included, along - Current Ratio: Current Assets / Current Liabilities
with peer company comparisons of values from 6 months ago, 3 months ago, 1 - Debt-to-Capital: Total Debt / Total Capital
month ago, the most recent value from 1 week ago, and the current score. The four - Interest Funding: (Interest Expense on Debt + Preferred Cash Dividends) /
closest industry peers are presented based on similar market capitalization. Funds from Operations
- Interest Coverage: Earnings before Interest and Taxes / (Interest Expense on
Peer Analysis Debt + Preferred Cash Dividends)
● The Refinitiv Business Classification (TRBC) schema is used for industry ● Earnings Quality is comprised of four data elements.
comparisons. It is designed to track and display the primary business of a - Operating Cash Yield: (Operating Cash Flow – Net Income) / Net Income
corporation by grouping together correlated companies that offer products and - Accruals: (Net Income – Operating Cash Flow – Investing Cash Flow) /
services into similar end markets. The system includes 10 Economic Sectors, 28 Average Net Operating Assets
Business Sectors, 54 Industry Groups, and 136 Industries. - Days Sales in Inventory: 365 / (Cost of Goods Sold / Inventory)
● The Peer Analysis section of the report compares the company to its ten closest - Days Sales in Receivables: 365 / (Net Sales / Receivables)
peers. The peers are selected from the industry based on similar market ● Dividend is comprised of four data elements. The company must have a current
capitalization. The peer listing may have fewer than ten companies if there are dividend yield.
fewer than ten companies within that industry classification. - Dividend Growth Rate: (Dividends per Share – Previous Dividends per Share)
/ Previous Dividends per Share
Highlights - Dividend Payout: Dividends per Share / Earnings per Share
The automated text-generation system from Refinitiv creates highlights - Dividend Coverage: Funds from Operations / Cash Dividends
summarizing the most noteworthy data. The bullets will vary by company and will - Dividend Yield: Annual Dividends per Share / Current Market Price per Share
change from week to week as different criteria are met.
Indicator Trend
Earnings The fundamental indicator trend displays either quarterly scores over the past three
The Earnings Rating is based on a combination of three factors: earnings surprise, years or annual scores over the past six years, depending on the reporting periods
estimate revision, and recommendation changes. Each factor is equally weighted. for the country. The best and worst scores can be easily determined from the
Then, equal deciles are used to rank each stock across the market on a scale of 1 values shown on the chart for each quarter or year.
to 10, with 10 being most favorable. A stock needs to have at least two of the three
earnings factors in order to receive a score. Relative Valuation
The Relative Valuation Rating is based on a combination of three component
● Earnings Surprises - The number of positive and negative surprises within the factors: Price to Sales, Trailing P/E, and Forward P/E. Each factor is equally
last 4 periods (quarters or years). weighted. Equal deciles are then used to rank each stock across the market on a
● Estimate Revisions - The number of up and down revisions and the average scale of 1 to 10, with 10 being most favorable. These common valuation metrics are
percentage change of those revisions within a 4 week period. evaluated against the overall market, the index, and the company's own historic 5-
● Recommendation Changes - The number of broker upgrades and downgrades in year averages. A stock needs to have at least one of the three relative valuation
the last 120 days. factors in order to receive a score.

Price Target ● Price to Sales: Close Price / (Sales for 4 Quarters or 1 Year / Shares
The price target is based on the predictions of analysts covering the stock and Outstanding)
shows the high, low and mean price expected within the next 12 months. ● Trailing P/E: Close Price / Most Recent 4 Quarters or 1 Year of Earnings
● Forward P/E: Close Price / Upcoming 4 Quarters or 1 Year of Earnings
Earnings Per Share
The quarterly and annual earnings per share are presented when available, along Valuation Averages
with the mean, high and low. Quarterly data is displayed for the past 4 quarters Negative values are excluded when calculating the averages. A maximum value of
(actual) and the next 2 quarters (estimated). Annual data is displayed for the past 2 100 is placed on Trailing P/E and Forward P/E, a maximum value of 5 is placed on
years (actual) and the next 2 years (estimated). Forward PEG, and a maximum value of 20 is placed on Price to Sales when

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UNIVERSAL MUSIC GROUP (UMG-AE)
Cyclical Consumer Services / Media & Publishing / Entertainment Production DETAILED STOCK REPORT
Report Date: 2023-Jun-25

calculating the averages. Higher values are rounded down to the maximum for the
averages.

Valuation Multiples
The valuation multiples provide the Trailing P/E, Forward P/E, Forward PEG, and
Price to Sales for the company and the S&P 500 index average. In addition, a
comparison of the current company’s values to its 5-year average and an industry
average are presented. A discount occurs when the company’s ratio is valued
more favorably (lower) than that to which it is compared.

Risk
The Risk Rating displays stocks on a scale of 1 to 10 with 10 being awarded to the
least risky stocks. It is derived by looking at a series of long-term (5-year) and
short-term (90-day) stock performance measures including volatility, magnitude of
returns, beta, and correlation. Each factor is equally weighted. Then, equal deciles
are used to rank each stock across the market. A stock needs to have at least two
of the four risk factors in order to receive a score.

● Magnitude of Returns – The best / worst daily returns in the past 90 days and the
best / worst monthly returns in the past 60 months.
● Volatility – The standard deviation of the stock price over the last 90 days and
last 60 months, along with the average and largest intra-day stock swing.
● Beta – Measures the tendency of a security’s returns to respond to swings in the
market, based on the beta of the company versus the relevant index.
● Correlation – Determines how closely the returns of the stock and the relevant
index move together, measured over the last 90 days and last 60 months.

Risk Analysis
Price analysis for the company and the relevant index is provided over two time
periods. Daily analysis is provided for the last 90 days, whereas monthly statistics
are used for the last 60 months.

Price Momentum
The Price Momentum Rating is based on a combination of two technical
performance factors: relative strength and seasonality. The factors are equally
weighted. Equal deciles are then used to rank each stock across the market on a
scale of 1 to 10, with 10 being most favorable. A stock needs to have data for the
relative strength factor in order to receive a score.

● Relative Strength – The relative strength of the company for the last 10 days, 50
days, and 200 days on a scale of 1 to 100.
● Seasonality – The average monthly return (price performance) for the current
month and next 2 months for the company and industry, over the past 10 years.
A lower industry rank indicates a higher return.

Price Performance
Daily close prices are used to calculate the price performance of the stock. The
performance of the relevant index is also displayed as a means of comparison.

DISCLAIMER

© 2023 Refinitiv. Republication or redistribution of Refinitiv content, including by

framing or similar means, is prohibited without the prior written consent of Refinitiv.
All information in this report is assumed to be accurate to the best of our ability.
Refinitiv is not liable for any errors or delays in Refinitiv content, or for any actions
taken in reliance on such content.

Any forward-looking statements included in the Refinitiv content are based on

certain assumptions and are subject to a number of risks and uncertainties that
could cause actual results to differ materially from current expectations. There is no
assurance that any forward-looking statements will materialize.

The content in this Refinitiv report does not constitute investment advice or a
recommendation to buy or sell securities of any kind. Past performance is not a
guarantee of future results. Investors should consider this report as only a single
factor when making an investment decision.

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