SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:639 - LU1778762911 - Common Stock
437 EUR
+15.55 (+3.69%)
639 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 46 industry peers in the Entertainment industry. 639 has an excellent financial health rating, but there are some minor concerns on its profitability. 639 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 639 had positive earnings in the past year.
- In the past year 639 had a positive cash flow from operations.
- In the past 5 years 639 reported 4 times negative net income.
- 639 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 639 has a better Return On Assets (9.56%) than 89.58% of its industry peers.
- Looking at the Return On Equity, with a value of 18.06%, 639 is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
- The Return On Invested Capital of 639 (19.82%) is better than 91.67% 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
- 639 has a Profit Margin of 8.32%. This is in the better half of the industry: 639 outperforms 77.08% of its industry peers.
- The Operating Margin of 639 (11.68%) is better than 77.08% of its industry peers.
- 639's Operating Margin has improved in the last couple of years.
- 639 has a Gross Margin of 31.75%. This is in the lower half of the industry: 639 underperforms 72.92% of its industry peers.
- In the last couple of years the Gross Margin of 639 has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 639 is creating value.
- The number of shares outstanding for 639 has been increased compared to 1 year ago.
- The number of shares outstanding for 639 has been increased compared to 5 years ago.
- 639 has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 9.88 indicates that 639 is not in any danger for bankruptcy at the moment.
- 639's Altman-Z score of 9.88 is amongst the best of the industry. 639 outperforms 93.75% of its industry peers.
- The Debt to FCF ratio of 639 is 0.75, which is an excellent value as it means it would take 639, only 0.75 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.75, 639 belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
- 639 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 639 (0.06) is better than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 9.88 |
ROIC/WACC2.6
WACC7.62%
2.3 Liquidity
- A Current Ratio of 1.61 indicates that 639 should not have too much problems paying its short term obligations.
- With an excellent Current ratio value of 1.61, 639 belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
- A Quick Ratio of 1.61 indicates that 639 should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.61, 639 belongs to the top of the industry, outperforming 85.42% 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.
- 639 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.89%.
- Measured over the past years, 639 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
- The Earnings Per Share is expected to grow by 29.34% on average over the next years. This is a very strong growth
- Based on estimates for the next years, 639 will show a quite strong growth in Revenue. The Revenue will grow by 12.46% on average per year.
EPS Next Y34.11%
EPS Next 2Y50.58%
EPS Next 3Y42.21%
EPS Next 5Y29.34%
Revenue Next Year9.53%
Revenue Next 2Y11.7%
Revenue Next 3Y12.45%
Revenue Next 5Y12.46%
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 76.80 indicates a quite expensive valuation of 639.
- Based on the Price/Earnings ratio, 639 is valued a bit cheaper than 66.67% of the companies in the same industry.
- 639 is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 34.98, which means the current valuation is very expensive for 639.
- 639's Price/Forward Earnings is on the same level as the industry average.
- 639 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.8 | ||
| Fwd PE | 34.98 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 639.
- 639's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.87 | ||
| EV/EBITDA | 38.2 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 639 does not grow enough to justify the current Price/Earnings ratio.
- 639 has a very decent profitability rating, which may justify a higher PE ratio.
- 639's earnings are expected to grow with 42.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)N/A
EPS Next 2Y50.58%
EPS Next 3Y42.21%
5. Dividend
5.1 Amount
- No dividends for 639!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SPOTIFY TECHNOLOGY SA / 639.DE FAQ
Can you provide the ChartMill fundamental rating for SPOTIFY TECHNOLOGY SA?
ChartMill assigns a fundamental rating of 6 / 10 to 639.DE.
Can you provide the valuation status for SPOTIFY TECHNOLOGY SA?
ChartMill assigns a valuation rating of 3 / 10 to SPOTIFY TECHNOLOGY SA (639.DE). This can be considered as Overvalued.
Can you provide the profitability details for SPOTIFY TECHNOLOGY SA?
SPOTIFY TECHNOLOGY SA (639.DE) has a profitability rating of 6 / 10.
What are the PE and PB ratios of SPOTIFY TECHNOLOGY SA (639.DE) stock?
The Price/Earnings (PE) ratio for SPOTIFY TECHNOLOGY SA (639.DE) is 76.8 and the Price/Book (PB) ratio is 11.57.
What is the earnings growth outlook for SPOTIFY TECHNOLOGY SA?
The Earnings per Share (EPS) of SPOTIFY TECHNOLOGY SA (639.DE) is expected to grow by 34.11% in the next year.