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. While showing a medium growth rate, 1SPOT is valued expensive at the moment.
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.
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
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.
1SPOT's Return On Equity of 18.06% is amongst the best of the industry. 1SPOT outperforms 81.25% of its industry peers.
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's Profit Margin of 8.32% is fine compared to the rest of the industry. 1SPOT outperforms 75.00% of its industry peers.
1SPOT's Operating Margin of 11.68% is fine compared to the rest of the industry. 1SPOT outperforms 77.08% of its industry peers.
1SPOT's Operating Margin has improved in the last couple of years.
1SPOT has a Gross Margin of 31.75%. This is in the lower half of the industry: 1SPOT underperforms 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
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.
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 10.54. This indicates that 1SPOT is financially healthy and has little risk of bankruptcy at the moment.
1SPOT's Altman-Z score of 10.54 is amongst the best of the industry. 1SPOT outperforms 91.67% of its industry peers.
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.
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.
The Debt to Equity ratio of 1SPOT (0.06) is better than 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
1SPOT has a Current 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.
1SPOT has a better Current ratio (1.61) than 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's Quick ratio of 1.61 is amongst the best of 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
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
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.
The Revenue is expected to grow by 12.31% on average over the next years. This is quite good.
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.
Compared to the rest of the industry, the Price/Earnings ratio of 1SPOT indicates a somewhat cheap valuation: 1SPOT is cheaper than 62.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1SPOT to the average of the S&P500 Index (26.59), we can say 1SPOT is valued expensively.
Based on the Price/Forward Earnings ratio of 40.65, the valuation of 1SPOT can be described as expensive.
1SPOT's Price/Forward Earnings is on the same level as the industry average.
1SPOT is valuated expensively when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.84 | ||
| Fwd PE | 40.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1SPOT is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1SPOT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.5 | ||
| EV/EBITDA | 41.89 |
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
No dividends for 1SPOT!.
| 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.