SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SPOT - LU1778762911 - Common Stock
486.5 EUR
+9.45 (+1.98%)
1SPOT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Entertainment industry. 1SPOT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 1SPOT is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years 1SPOT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.56%, 1SPOT belongs to the best of the industry, outperforming 92.16% 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 82.35% of the companies in the same industry.
The Return On Invested Capital of 1SPOT (19.82%) is better than 94.12% 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 72.55% of its industry peers.
1SPOT has a Operating Margin of 11.68%. This is in the better half of the industry: 1SPOT outperforms 74.51% of its industry peers.
1SPOT's Operating Margin has improved in the last couple of years.
1SPOT has a worse Gross Margin (31.75%) than 74.51% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1SPOT 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.
1SPOT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.76 indicates that 1SPOT is not in any danger for bankruptcy at the moment.
1SPOT has a better Altman-Z score (10.76) than 92.16% 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.
With an excellent Debt to FCF ratio value of 0.75, 1SPOT belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
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 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.76 |
ROIC/WACC2.65
WACC7.48%
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 80.39% of its industry peers.
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 80.39% of the companies in the same industry.
| 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.
Looking at the last year, 1SPOT shows a quite strong growth in Revenue. The Revenue has grown by 11.89% in the last year.
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 29.72% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.87% on average over the next years. This is quite good.
EPS Next Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.72%
Revenue Next Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
Revenue Next 5Y11.87%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 85.50 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 62.75% of the companies listed in the same industry.
1SPOT is valuated expensively when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 38.76, 1SPOT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SPOT.
When comparing the Price/Forward Earnings ratio of 1SPOT to the average of the S&P500 Index (24.01), we can say 1SPOT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.5 | ||
| Fwd PE | 38.76 |
4.2 Price Multiples
1SPOT's Enterprise Value to EBITDA ratio is in line with the industry average.
1SPOT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.36 | ||
| EV/EBITDA | 43.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1SPOT does not grow enough to justify the current Price/Earnings ratio.
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 42.55% in the coming years.
PEG (NY)2.53
PEG (5Y)N/A
EPS Next 2Y50.92%
EPS Next 3Y42.55%
5. Dividend
5.1 Amount
1SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1SPOT (12/16/2025, 7:00:00 PM)
486.5
+9.45 (+1.98%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners67.74%
Inst Owner ChangeN/A
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap100.17B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target644.92 (32.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-2.51%
PT rev (3m)1.21%
EPS NQ rev (1m)9.23%
EPS NQ rev (3m)11.47%
EPS NY rev (1m)36.24%
EPS NY rev (3m)27.31%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.5 | ||
| Fwd PE | 38.76 | ||
| P/S | 5.93 | ||
| P/FCF | 34.36 | ||
| P/OCF | 33.84 | ||
| P/B | 12.88 | ||
| P/tB | 15.02 | ||
| EV/EBITDA | 43.1 |
EPS(TTM)5.69
EY1.17%
EPS(NY)12.55
Fwd EY2.58%
FCF(TTM)14.16
FCFY2.91%
OCF(TTM)14.38
OCFY2.96%
SpS82.07
BVpS37.78
TBVpS32.39
PEG (NY)2.53
PEG (5Y)N/A
Graham Number69.55
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 | 10.76 |
F-Score6
WACC7.48%
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 Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.72%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
Revenue Next 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year69.42%
EBIT Next 3Y44.52%
EBIT Next 5Y29.59%
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 grow by 33.74% in the next year.