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

Europe - Euronext Milan - BIT:1SPOT - LU1778762911 - Common Stock

496.2 EUR
-64.3 (-11.47%)
Last: 12/2/2025, 7:00:00 PM
Fundamental Rating

6

Overall 1SPOT gets a fundamental rating of 6 out of 10. We evaluated 1SPOT against 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.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year 1SPOT was profitable.
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.
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 9.56%, 1SPOT belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.06%, 1SPOT is in the better half of the industry, outperforming 79.17% 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 91.67% of its industry peers.
Industry RankSector 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
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

1SPOT has a Profit Margin of 8.32%. This is in the better half of the industry: 1SPOT outperforms 72.92% of its industry peers.
1SPOT's Operating Margin of 11.68% is fine compared to the rest of the industry. 1SPOT outperforms 75.00% 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 72.92% of its industry peers.
1SPOT's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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

8

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1SPOT 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.
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 10.88. This indicates that 1SPOT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.88, 1SPOT belongs to the top of the industry, outperforming 93.75% 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.
1SPOT has a Debt to FCF ratio of 0.75. This is amongst the best in the industry. 1SPOT outperforms 91.67% 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 87.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.75
Altman-Z 10.88
ROIC/WACC2.67
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

A Current Ratio of 1.61 indicates that 1SPOT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.61, 1SPOT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that 1SPOT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.61, 1SPOT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.61
Quick Ratio 1.61
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

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 38.11%, which is quite impressive.
The Revenue has grown by 11.89% in the past year. This is quite good.
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

1SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.24% yearly.
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

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
1SPOT.MI Yearly EPS VS Estimates1SPOT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 10 20

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 87.21 indicates a quite expensive valuation of 1SPOT.
Compared to the rest of the industry, the Price/Earnings ratio of 1SPOT indicates a somewhat cheap valuation: 1SPOT is cheaper than 60.42% of the companies listed in the same industry.
1SPOT is valuated expensively when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 42.28, which means the current valuation is very expensive for 1SPOT.
Based on the Price/Forward Earnings ratio, 1SPOT is valued a bit more expensive than the industry average as 60.42% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, 1SPOT is valued quite expensively.
Industry RankSector Rank
PE 87.21
Fwd PE 42.28
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

Based on the Enterprise Value to EBITDA ratio, 1SPOT is valued a bit more expensive than 60.42% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1SPOT.
Industry RankSector Rank
P/FCF 34.85
EV/EBITDA 43.77
1SPOT.MI Per share data1SPOT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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%

0

5. Dividend

5.1 Amount

1SPOT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

SPOTIFY TECHNOLOGY SA

BIT:1SPOT (12/2/2025, 7:00:00 PM)

496.2

-64.3 (-11.47%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-04 2026-02-04/amc
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 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)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 RankSector 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 43.77
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 RankSector 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 RankSector 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 10.88
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.