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SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis

BIT:1SPOT - Euronext Milan - LU1778762911 - Common Stock - Currency: EUR

476.05  -55.65 (-10.47%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to 1SPOT. 1SPOT was compared to 46 industry peers in the Entertainment industry. While 1SPOT has a great health rating, its profitability is only average at the moment. 1SPOT has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

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.
1SPOT had a positive operating cash flow in each of the past 5 years.
1SPOT.MI Yearly Net Income VS EBIT VS OCF VS FCF1SPOT.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

1.2 Ratios

With an excellent Return On Assets value of 9.48%, 1SPOT belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
1SPOT has a Return On Equity of 20.60%. This is amongst the best in the industry. 1SPOT outperforms 80.43% of its industry peers.
1SPOT has a Return On Invested Capital of 15.33%. This is amongst the best in the industry. 1SPOT outperforms 91.30% of its industry peers.
Industry RankSector Rank
ROA 9.48%
ROE 20.6%
ROIC 15.33%
ROA(3y)-0.84%
ROA(5y)-2.44%
ROE(3y)-6.13%
ROE(5y)-8.14%
ROIC(3y)N/A
ROIC(5y)N/A
1SPOT.MI Yearly ROA, ROE, ROIC1SPOT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 -400

1.3 Margins

With a decent Profit Margin value of 7.26%, 1SPOT is doing good in the industry, outperforming 73.91% of the companies in the same industry.
1SPOT has a Operating Margin of 8.71%. This is in the better half of the industry: 1SPOT outperforms 73.91% of its industry peers.
In the last couple of years the Operating Margin of 1SPOT has grown nicely.
1SPOT has a worse Gross Margin (30.14%) than 78.26% of its industry peers.
1SPOT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 8.71%
PM (TTM) 7.26%
GM 30.14%
OM growth 3Y107.65%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.12%
GM growth 5Y3.51%
1SPOT.MI Yearly Profit, Operating, Gross Margins1SPOT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

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8

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.
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.
1SPOT.MI Yearly Shares Outstanding1SPOT.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
1SPOT.MI Yearly Total Debt VS Total Assets1SPOT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

1SPOT has an Altman-Z score of 10.74. This indicates that 1SPOT is financially healthy and has little risk of bankruptcy at the moment.
1SPOT has a Altman-Z score of 10.74. This is amongst the best in the industry. 1SPOT outperforms 97.83% of its industry peers.
1SPOT has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.
The Debt to FCF ratio of 1SPOT (0.88) is better than 91.30% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that 1SPOT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.36, 1SPOT is doing good in the industry, outperforming 65.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 0.88
Altman-Z 10.74
ROIC/WACC2.06
WACC7.43%
1SPOT.MI Yearly LT Debt VS Equity VS FCF1SPOT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

1SPOT has a Current Ratio of 1.88. This is a normal value and indicates that 1SPOT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.88, 1SPOT belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
1SPOT has a Quick Ratio of 1.88. 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 Quick ratio of 1.88. This is amongst the best in the industry. 1SPOT outperforms 80.43% of its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.88
1SPOT.MI Yearly Current Assets VS Current Liabilites1SPOT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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6

3. Growth

3.1 Past

1SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 374.13%, which is quite impressive.
Looking at the last year, 1SPOT shows a quite strong growth in Revenue. The Revenue has grown by 18.31% in the last year.
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)374.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%375.68%
Revenue 1Y (TTM)18.31%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.55%

3.2 Future

1SPOT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.27% yearly.
1SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.32% yearly.
EPS Next Y88.15%
EPS Next 2Y56.16%
EPS Next 3Y44.82%
EPS Next 5Y18.27%
Revenue Next Year16.05%
Revenue Next 2Y15.7%
Revenue Next 3Y14.62%
Revenue Next 5Y14.32%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
1SPOT.MI Yearly Revenue VS Estimates1SPOT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
1SPOT.MI Yearly EPS VS Estimates1SPOT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

1SPOT is valuated quite expensively with a Price/Earnings ratio of 86.40.
60.87% of the companies in the same industry are more expensive than 1SPOT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 1SPOT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 45.92, the valuation of 1SPOT can be described as expensive.
1SPOT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 1SPOT to the average of the S&P500 Index (22.10), we can say 1SPOT is valued expensively.
Industry RankSector Rank
PE 86.4
Fwd PE 45.92
1SPOT.MI Price Earnings VS Forward Price Earnings1SPOT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1SPOT indicates a slightly more expensive valuation: 1SPOT is more expensive than 63.04% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1SPOT is valued a bit cheaper than 60.87% of the companies in the same industry.
Industry RankSector Rank
P/FCF 42.67
EV/EBITDA 60.12
1SPOT.MI Per share data1SPOT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 44.82% in the coming years.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y56.16%
EPS Next 3Y44.82%

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0

5. Dividend

5.1 Amount

No dividends for 1SPOT!.
Industry RankSector Rank
Dividend Yield N/A

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SPOTIFY TECHNOLOGY SA

BIT:1SPOT (3/7/2025, 7:00:00 PM)

476.05

-55.65 (-10.47%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-04 2025-02-04/bmo
Earnings (Next)N/A N/A
Inst Owners67.74%
Inst Owner ChangeN/A
Ins Owners16.27%
Ins Owner ChangeN/A
Market Cap97.45B
Analysts75.91
Price Target605.52 (27.2%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-15.23%
Min EPS beat(2)-17.36%
Max EPS beat(2)-13.1%
EPS beat(4)2
Avg EPS beat(4)9.71%
Min EPS beat(4)-17.36%
Max EPS beat(4)45.84%
EPS beat(8)4
Avg EPS beat(8)48.21%
EPS beat(12)5
Avg EPS beat(12)43.05%
EPS beat(16)8
Avg EPS beat(16)33.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.18%
Revenue beat(12)0
Avg Revenue beat(12)-1.75%
Revenue beat(16)1
Avg Revenue beat(16)-1.46%
PT rev (1m)32.56%
PT rev (3m)36.32%
EPS NQ rev (1m)14.09%
EPS NQ rev (3m)15.32%
EPS NY rev (1m)10.84%
EPS NY rev (3m)12.33%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.64%
Valuation
Industry RankSector Rank
PE 86.4
Fwd PE 45.92
P/S 6.22
P/FCF 42.67
P/OCF 42.35
P/B 17.64
P/tB 22.79
EV/EBITDA 60.12
EPS(TTM)5.51
EY1.16%
EPS(NY)10.37
Fwd EY2.18%
FCF(TTM)11.16
FCFY2.34%
OCF(TTM)11.24
OCFY2.36%
SpS76.56
BVpS26.99
TBVpS20.89
PEG (NY)0.98
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 9.48%
ROE 20.6%
ROCE 18.07%
ROIC 15.33%
ROICexc 1082.59%
ROICexgc N/A
OM 8.71%
PM (TTM) 7.26%
GM 30.14%
FCFM 14.57%
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover1.31
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 0.88
Debt/EBITDA 1.35
Cap/Depr 14.05%
Cap/Sales 0.11%
Interest Coverage 37.92
Cash Conversion 154.85%
Profit Quality 200.7%
Current Ratio 1.88
Quick Ratio 1.88
Altman-Z 10.74
F-Score7
WACC7.43%
ROIC/WACC2.06
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)374.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%375.68%
EPS Next Y88.15%
EPS Next 2Y56.16%
EPS Next 3Y44.82%
EPS Next 5Y18.27%
Revenue 1Y (TTM)18.31%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.55%
Revenue Next Year16.05%
Revenue Next 2Y15.7%
Revenue Next 3Y14.62%
Revenue Next 5Y14.32%
EBIT growth 1Y1329.73%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year84.03%
EBIT Next 3Y44.42%
EBIT Next 5Y21.75%
FCF growth 1Y238.87%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y238.38%
OCF growth 3Y85.41%
OCF growth 5Y32.05%