SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SPOT - LU1778762911 - Common Stock
477.05 EUR
-19.15 (-3.86%)
We assign a fundamental rating of 6 out of 10 to 1SPOT. 1SPOT was compared to 48 industry peers in the Entertainment industry. While 1SPOT has a great health rating, its profitability is only average at the moment. 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.
Each year in the past 5 years 1SPOT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.56%, 1SPOT belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
With an excellent Return On Equity value of 18.06%, 1SPOT belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
1SPOT's Return On Invested Capital of 19.82% is amongst the best of the industry. 1SPOT outperforms 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
The Profit Margin of 1SPOT (8.32%) is better than 75.00% of its industry peers.
The Operating Margin of 1SPOT (11.68%) is better than 77.08% 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 70.83% 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.
Compared to 1 year ago, 1SPOT has more shares outstanding
The number of shares outstanding for 1SPOT has been increased compared to 5 years ago.
Compared to 1 year ago, 1SPOT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.54 indicates that 1SPOT is not in any danger for bankruptcy at the moment.
1SPOT has a better Altman-Z score (10.54) than 91.67% 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 better Debt to FCF ratio (0.75) than 93.75% of its industry peers.
1SPOT has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
1SPOT has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. 1SPOT outperforms 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.54 |
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.
A Quick Ratio of 1.61 indicates that 1SPOT should not have too much problems paying its short term obligations.
1SPOT has a Quick ratio of 1.61. This is amongst the best in the industry. 1SPOT outperforms 83.33% 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.
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
The Earnings Per Share is expected to grow by 29.24% on average over the next years. This is a very strong growth
1SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.31% yearly.
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 83.84.
Based on the Price/Earnings ratio, 1SPOT is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
1SPOT is valuated expensively when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 40.65, 1SPOT can be considered very expensive at the moment.
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 23.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.84 | ||
| Fwd PE | 40.65 |
4.2 Price Multiples
1SPOT's Enterprise Value to EBITDA ratio is in line with the industry average.
1SPOT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.5 | ||
| EV/EBITDA | 41.89 |
4.3 Compensation for Growth
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 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 (12/8/2025, 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 Owners70.11%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap97.66B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts78.3
Price Target661.54 (38.67%)
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 | 83.84 | ||
| Fwd PE | 40.65 | ||
| P/S | 5.78 | ||
| P/FCF | 33.5 | ||
| P/OCF | 32.99 | ||
| P/B | 12.55 | ||
| P/tB | 14.65 | ||
| EV/EBITDA | 41.89 |
EPS(TTM)5.69
EY1.19%
EPS(NY)11.74
Fwd EY2.46%
FCF(TTM)14.24
FCFY2.98%
OCF(TTM)14.46
OCFY3.03%
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 | 10.54 |
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 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.