SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SPOT - LU1778762911 - Common Stock
496.2 EUR
-64.3 (-11.47%)
1SPOT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Entertainment industry. 1SPOT has an excellent financial health rating, but there are some minor concerns on its profitability. 1SPOT is valied quite expensively at the moment, while 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.
1SPOT had negative earnings in 4 of the past 5 years.
In the past 5 years 1SPOT always reported a positive cash flow from operatings.
1.2 Ratios
1SPOT has a better Return On Assets (9.56%) than 89.13% of its industry peers.
The Return On Equity of 1SPOT (18.06%) is better than 80.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.82%, 1SPOT belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
| 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's Profit Margin of 8.32% is fine compared to the rest of the industry. 1SPOT outperforms 73.91% of its industry peers.
With a decent Operating Margin value of 11.68%, 1SPOT is doing good in the industry, outperforming 76.09% of the companies in the same industry.
1SPOT's Operating Margin has improved in the last couple of years.
The Gross Margin of 1SPOT (31.75%) is worse than 76.09% of its industry peers.
In the last couple of years the Gross Margin of 1SPOT has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1SPOT is creating value.
Compared to 1 year ago, 1SPOT has more shares outstanding
Compared to 5 years ago, 1SPOT has more shares outstanding
The debt/assets ratio for 1SPOT has been reduced compared to a year ago.
2.2 Solvency
1SPOT has an Altman-Z score of 12.03. This indicates that 1SPOT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.03, 1SPOT belongs to the best of the industry, outperforming 93.48% of the companies in the same industry.
1SPOT has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.75, 1SPOT belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
1SPOT has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
1SPOT's Debt to Equity ratio of 0.06 is amongst the best of the industry. 1SPOT outperforms 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.03 |
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.
1SPOT has a better Current ratio (1.61) than 80.43% of its industry peers.
A Quick Ratio of 1.61 indicates that 1SPOT should not have too much problems paying its short term obligations.
1SPOT's Quick ratio of 1.61 is amongst the best of the industry. 1SPOT outperforms 80.43% 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.
1SPOT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.89%.
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 29.24% 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 12.31% on average per year.
EPS Next Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.24%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
Revenue Next 5Y12.31%
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 87.21.
63.04% of the companies in the same industry are more expensive than 1SPOT, based on the Price/Earnings ratio.
1SPOT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.49.
With a Price/Forward Earnings ratio of 42.28, 1SPOT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SPOT.
1SPOT is valuated expensively when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.21 | ||
| Fwd PE | 42.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1SPOT is valued a bit more expensive than 60.87% of the companies in the same industry.
1SPOT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.85 | ||
| EV/EBITDA | 50.1 |
4.3 Compensation for Growth
1SPOT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1SPOT's earnings are expected to grow with 41.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.94%
EPS Next 3Y41.06%
5. Dividend
5.1 Amount
1SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1SPOT (12/2/2025, 7:00:00 PM)
496.2
-64.3 (-11.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners70.11%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap101.58B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts78.3
Price Target661.54 (33.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1.66%
PT rev (3m)1.58%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)-2.23%
EPS NY rev (1m)-5.47%
EPS NY rev (3m)-35.97%
Revenue NQ rev (1m)-1.2%
Revenue NQ rev (3m)-2.33%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.21 | ||
| Fwd PE | 42.28 | ||
| P/S | 6.01 | ||
| P/FCF | 34.85 | ||
| P/OCF | 34.32 | ||
| P/B | 13.06 | ||
| P/tB | 15.23 | ||
| EV/EBITDA | 50.1 |
EPS(TTM)5.69
EY1.15%
EPS(NY)11.74
Fwd EY2.37%
FCF(TTM)14.24
FCFY2.87%
OCF(TTM)14.46
OCFY2.91%
SpS82.54
BVpS38
TBVpS32.57
PEG (NY)N/A
PEG (5Y)N/A
Graham Number69.75
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 | 12.03 |
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 Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.24%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
Revenue Next 5Y12.31%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year63.74%
EBIT Next 3Y43.76%
EBIT Next 5Y30.54%
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 decline by -1.83% in the next year.