SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
Europe - BIT:1SPOT - LU1778762911 - Common Stock
560.5 EUR
+12.8 (+2.34%)
We assign a fundamental rating of 6 out of 10 to 1SPOT. 1SPOT was compared to 45 industry peers in the Entertainment industry. 1SPOT has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
1SPOT had a positive operating cash flow in the past year.
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
The Return On Assets of 1SPOT (9.56%) is better than 89.13% of its industry peers.
1SPOT has a Return On Equity of 18.06%. This is amongst the best in the industry. 1SPOT outperforms 80.43% of its industry peers.
With an excellent Return On Invested Capital value of 19.82%, 1SPOT belongs to the best 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
The Profit Margin of 1SPOT (8.32%) is better than 73.91% of its industry peers.
1SPOT has a better Operating Margin (11.68%) than 76.09% of its industry peers.
In the last couple of years the Operating Margin of 1SPOT has grown nicely.
Looking at the Gross Margin, with a value of 31.75%, 1SPOT is doing worse than 76.09% 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
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
1SPOT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1SPOT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.03 indicates that 1SPOT is not in any danger for bankruptcy at the moment.
1SPOT's Altman-Z score of 12.03 is amongst the best of the industry. 1SPOT outperforms 93.48% 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.
The Debt to FCF ratio of 1SPOT (0.75) is better than 89.13% 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 better Debt to Equity ratio (0.06) than 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 12.03 |
ROIC/WACC2.65
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.61 indicates that 1SPOT should not have too much problems paying its short term obligations.
1SPOT's Current ratio of 1.61 is amongst the best of the industry. 1SPOT outperforms 80.43% 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.
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%.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
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
Based on the Price/Earnings ratio of 98.51, the valuation of 1SPOT can be described as expensive.
Based on the Price/Earnings ratio, 1SPOT is valued a bit cheaper than 63.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. 1SPOT is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 47.76, which means the current valuation is very expensive for 1SPOT.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SPOT.
1SPOT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 98.51 | ||
| Fwd PE | 47.76 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1SPOT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.36 | ||
| EV/EBITDA | 50.1 |
4.3 Compensation for Growth
1SPOT has a very decent profitability rating, which may justify a higher PE ratio.
1SPOT's earnings are expected to grow with 41.06% in the coming years. This may justify a more expensive valuation.
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 (11/5/2025, 7:00:00 PM)
560.5
+12.8 (+2.34%)
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 Cap114.74B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts78.3
Price Target661.54 (18.03%)
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 | 98.51 | ||
| Fwd PE | 47.76 | ||
| P/S | 6.79 | ||
| P/FCF | 39.36 | ||
| P/OCF | 38.76 | ||
| P/B | 14.75 | ||
| P/tB | 17.21 | ||
| EV/EBITDA | 50.1 |
EPS(TTM)5.69
EY1.02%
EPS(NY)11.74
Fwd EY2.09%
FCF(TTM)14.24
FCFY2.54%
OCF(TTM)14.46
OCFY2.58%
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
WACC7.47%
ROIC/WACC2.65
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.