SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SPOT - LU1778762911 - Common Stock
486.5 EUR
+9.45 (+1.98%)
1SPOT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 industry peers in the Entertainment industry. 1SPOT has an excellent financial health rating, but there are some minor concerns on its profitability. 1SPOT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1SPOT was profitable.
In the past year 1SPOT had a positive cash flow from operations.
In the past 5 years 1SPOT reported 4 times negative net income.
1SPOT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1SPOT's Return On Assets of 9.56% is amongst the best of the industry. 1SPOT outperforms 91.84% of its industry peers.
1SPOT has a Return On Equity of 18.06%. This is amongst the best in the industry. 1SPOT outperforms 81.63% of its industry peers.
1SPOT's Return On Invested Capital of 19.82% is amongst the best of the industry. 1SPOT outperforms 93.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 18.06% | ||
| ROIC | 19.82% |
ROA(3y)-0.84%
ROA(5y)-2.44%
ROE(3y)-6.13%
ROE(5y)-8.14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of 1SPOT (8.32%) is better than 75.51% of its industry peers.
1SPOT has a Operating Margin of 11.68%. This is in the better half of the industry: 1SPOT outperforms 75.51% of its industry peers.
1SPOT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.75%, 1SPOT is doing worse than 73.47% of the companies in the same industry.
1SPOT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.68% | ||
| PM (TTM) | 8.32% | ||
| GM | 31.75% |
OM growth 3Y107.65%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.12%
GM growth 5Y3.51%
2. Health
2.1 Basic Checks
1SPOT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1SPOT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1SPOT has been increased compared to 5 years ago.
The debt/assets ratio for 1SPOT has been reduced compared to a year ago.
2.2 Solvency
1SPOT has an Altman-Z score of 10.76. This indicates that 1SPOT is financially healthy and has little risk of bankruptcy at the moment.
1SPOT has a better Altman-Z score (10.76) than 93.88% of its industry peers.
The Debt to FCF ratio of 1SPOT is 0.75, which is an excellent value as it means it would take 1SPOT, only 0.75 years of fcf income to pay off all of its debts.
1SPOT has a Debt to FCF ratio of 0.75. This is amongst the best in the industry. 1SPOT outperforms 93.88% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that 1SPOT is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.06, 1SPOT belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.76 |
ROIC/WACC2.67
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.61 indicates that 1SPOT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.61, 1SPOT belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
1SPOT has a Quick Ratio of 1.61. This is a normal value and indicates that 1SPOT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1SPOT (1.61) is better than 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.11% over the past year.
The Revenue has grown by 11.89% in the past year. This is quite good.
Measured over the past years, 1SPOT shows a quite strong growth in Revenue. The Revenue has been growing by 18.30% on average per year.
EPS 1Y (TTM)38.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%126.21%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
3.2 Future
Based on estimates for the next years, 1SPOT will show a very strong growth in Earnings Per Share. The EPS will grow by 29.72% on average per year.
Based on estimates for the next years, 1SPOT will show a quite strong growth in Revenue. The Revenue will grow by 11.87% on average per year.
EPS Next Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
Revenue Next 5Y11.87%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
1SPOT is valuated quite expensively with a Price/Earnings ratio of 85.50.
Based on the Price/Earnings ratio, 1SPOT is valued a bit cheaper than 63.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.43, 1SPOT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 38.89, the valuation of 1SPOT can be described as expensive.
1SPOT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.66. 1SPOT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.5 | ||
| Fwd PE | 38.89 |
4.2 Price Multiples
1SPOT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1SPOT is more expensive than 61.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1SPOT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.36 | ||
| EV/EBITDA | 43.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1SPOT has a very decent profitability rating, which may justify a higher PE ratio.
1SPOT's earnings are expected to grow with 42.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.59
PEG (5Y)N/A
EPS Next 2Y50.68%
EPS Next 3Y42.3%
5. Dividend
5.1 Amount
No dividends for 1SPOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1SPOT (12/16/2025, 7:00:00 PM)
486.5
+9.45 (+1.98%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners67.74%
Inst Owner ChangeN/A
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap100.17B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target658.81 (35.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-29.44%
Min EPS beat(2)-121.7%
Max EPS beat(2)62.82%
EPS beat(4)1
Avg EPS beat(4)-31.07%
Min EPS beat(4)-121.7%
Max EPS beat(4)62.82%
EPS beat(8)4
Avg EPS beat(8)25.11%
EPS beat(12)5
Avg EPS beat(12)22.23%
EPS beat(16)7
Avg EPS beat(16)28.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.15%
Revenue beat(12)0
Avg Revenue beat(12)-2.17%
Revenue beat(16)0
Avg Revenue beat(16)-1.78%
PT rev (1m)-0.41%
PT rev (3m)3.39%
EPS NQ rev (1m)8.97%
EPS NQ rev (3m)11.2%
EPS NY rev (1m)35.44%
EPS NY rev (3m)26.56%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.5 | ||
| Fwd PE | 38.89 | ||
| P/S | 5.93 | ||
| P/FCF | 34.36 | ||
| P/OCF | 33.84 | ||
| P/B | 12.88 | ||
| P/tB | 15.02 | ||
| EV/EBITDA | 43.1 |
EPS(TTM)5.69
EY1.17%
EPS(NY)12.51
Fwd EY2.57%
FCF(TTM)14.16
FCFY2.91%
OCF(TTM)14.38
OCFY2.96%
SpS82.07
BVpS37.78
TBVpS32.39
PEG (NY)2.59
PEG (5Y)N/A
Graham Number69.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 18.06% | ||
| ROCE | 23.36% | ||
| ROIC | 19.82% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 11.68% | ||
| PM (TTM) | 8.32% | ||
| GM | 31.75% | ||
| FCFM | 17.25% |
ROA(3y)-0.84%
ROA(5y)-2.44%
ROE(3y)-6.13%
ROE(5y)-8.14%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y291.99%
ROICexc growth 5YN/A
OM growth 3Y107.65%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.12%
GM growth 5Y3.51%
F-Score6
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.21 | ||
| Cap/Depr | 42.06% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 50.62 | ||
| Cash Conversion | 142.24% | ||
| Profit Quality | 207.47% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 10.76 |
F-Score6
WACC7.43%
ROIC/WACC2.67
Cap/Depr(3y)10.82%
Cap/Depr(5y)33.93%
Cap/Sales(3y)0.12%
Cap/Sales(5y)0.45%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%126.21%
EPS Next Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
Revenue Next 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year69.42%
EBIT Next 3Y44.52%
EBIT Next 5Y29.59%
FCF growth 1Y1335.96%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y1289.67%
OCF growth 3Y85.41%
OCF growth 5Y32.05%
SPOTIFY TECHNOLOGY SA / 1SPOT.MI FAQ
What is the fundamental rating for 1SPOT stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1SPOT.MI.
What is the valuation status of SPOTIFY TECHNOLOGY SA (1SPOT.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to SPOTIFY TECHNOLOGY SA (1SPOT.MI). This can be considered as Overvalued.
What is the profitability of 1SPOT stock?
SPOTIFY TECHNOLOGY SA (1SPOT.MI) has a profitability rating of 6 / 10.
What is the expected EPS growth for SPOTIFY TECHNOLOGY SA (1SPOT.MI) stock?
The Earnings per Share (EPS) of SPOTIFY TECHNOLOGY SA (1SPOT.MI) is expected to grow by 32.96% in the next year.