SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SPOT - LU1778762911 - Common Stock
477.05 EUR
-19.15 (-3.86%)
1SPOT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 industry peers in the Entertainment industry. 1SPOT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 1SPOT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1SPOT had positive earnings in the past year.
In the past year 1SPOT had a positive cash flow from operations.
In the past 5 years 1SPOT reported 4 times negative net income.
In the past 5 years 1SPOT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1SPOT (9.56%) is better than 91.67% of its industry peers.
Looking at the Return On Equity, with a value of 18.06%, 1SPOT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
The Return On Invested Capital of 1SPOT (19.82%) is better than 93.75% 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
1SPOT has a better Profit Margin (8.32%) than 75.00% of its industry peers.
1SPOT has a better Operating Margin (11.68%) than 77.08% of its industry peers.
In the last couple of years the Operating Margin of 1SPOT has grown nicely.
1SPOT's Gross Margin of 31.75% is on the low side compared to the rest of the industry. 1SPOT is outperformed by 70.83% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1SPOT is creating value.
1SPOT has more shares outstanding than it did 1 year ago.
1SPOT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1SPOT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.59 indicates that 1SPOT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.59, 1SPOT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
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 better Debt to FCF ratio (0.75) than 93.75% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that 1SPOT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.06, 1SPOT belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.59 |
ROIC/WACC2.67
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.61 indicates that 1SPOT should not have too much problems paying its short term obligations.
1SPOT has a Current ratio of 1.61. This is amongst the best in the industry. 1SPOT outperforms 83.33% of its industry peers.
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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
1SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.11%, which is quite impressive.
The Revenue has grown by 11.89% in the past year. This is quite good.
1SPOT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.30% yearly.
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
1SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.72% yearly.
1SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.87% yearly.
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 83.84.
Based on the Price/Earnings ratio, 1SPOT is valued a bit cheaper than 64.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1SPOT to the average of the S&P500 Index (26.56), we can say 1SPOT is valued expensively.
1SPOT is valuated quite expensively with a Price/Forward Earnings ratio of 38.14.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SPOT.
1SPOT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.84 | ||
| Fwd PE | 38.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1SPOT.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1SPOT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.69 | ||
| EV/EBITDA | 42.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1SPOT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1SPOT may justify a higher PE ratio.
A more expensive valuation may be justified as 1SPOT's earnings are expected to grow with 42.30% in the coming years.
PEG (NY)2.54
PEG (5Y)N/A
EPS Next 2Y50.68%
EPS Next 3Y42.3%
5. Dividend
5.1 Amount
1SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1SPOT (12/8/2025, 7:00:00 PM)
477.05
-19.15 (-3.86%)
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 Cap98.22B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target658.81 (38.1%)
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 | 83.84 | ||
| Fwd PE | 38.14 | ||
| P/S | 5.81 | ||
| P/FCF | 33.69 | ||
| P/OCF | 33.18 | ||
| P/B | 12.63 | ||
| P/tB | 14.73 | ||
| EV/EBITDA | 42.16 |
EPS(TTM)5.69
EY1.19%
EPS(NY)12.51
Fwd EY2.62%
FCF(TTM)14.16
FCFY2.97%
OCF(TTM)14.38
OCFY3.01%
SpS82.07
BVpS37.78
TBVpS32.39
PEG (NY)2.54
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 | 10.59 |
F-Score6
WACC7.42%
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.