SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:639 - LU1778762911 - Common Stock
512 EUR
-2.2 (-0.43%)
We assign a fundamental rating of 6 out of 10 to 639. 639 was compared to 48 industry peers in the Entertainment industry. While 639 has a great health rating, its profitability is only average at the moment. 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.
639 had a positive operating cash flow in the past year.
639 had negative earnings in 4 of the past 5 years.
Each year in the past 5 years 639 had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.56%, 639 belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
639's Return On Equity of 18.06% is fine compared to the rest of the industry. 639 outperforms 79.17% of its industry peers.
639 has a better Return On Invested Capital (19.82%) 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
The Profit Margin of 639 (8.32%) is better than 72.92% of its industry peers.
Looking at the Operating Margin, with a value of 11.68%, 639 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
639's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.75%, 639 is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
639'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), 639 is creating value.
Compared to 1 year ago, 639 has more shares outstanding
The number of shares outstanding for 639 has been increased compared to 5 years ago.
Compared to 1 year ago, 639 has an improved debt to assets ratio.
2.2 Solvency
639 has an Altman-Z score of 11.22. This indicates that 639 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 639 (11.22) is better than 97.92% 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 91.67% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that 639 is not too dependend on debt financing.
639 has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. 639 outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 11.22 |
ROIC/WACC2.67
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.61 indicates that 639 should not have too much problems paying its short term obligations.
639's Current ratio of 1.61 is amongst the best of the industry. 639 outperforms 81.25% of its industry peers.
639 has a Quick Ratio of 1.61. This is a normal value and indicates that 639 is financially healthy and should not expect problems in meeting its short term obligations.
639 has a better Quick ratio (1.61) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
639 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.11%, which is quite impressive.
639 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
639 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.72% yearly.
Based on estimates for the next years, 639 will show a quite strong growth in Revenue. The Revenue will grow by 11.87% on average per year.
EPS Next Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
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
Based on the Price/Earnings ratio of 89.98, the valuation of 639 can be described as expensive.
Based on the Price/Earnings ratio, 639 is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 639 to the average of the S&P500 Index (26.76), we can say 639 is valued expensively.
Based on the Price/Forward Earnings ratio of 40.93, the valuation of 639 can be described as expensive.
60.42% of the companies in the same industry are cheaper than 639, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.96. 639 is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.98 | ||
| Fwd PE | 40.93 |
4.2 Price Multiples
60.42% of the companies in the same industry are cheaper than 639, based on the Enterprise Value to EBITDA ratio.
639's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.16 | ||
| EV/EBITDA | 45.62 |
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.
The decent profitability rating of 639 may justify a higher PE ratio.
A more expensive valuation may be justified as 639's earnings are expected to grow with 42.30% in the coming years.
PEG (NY)2.73
PEG (5Y)N/A
EPS Next 2Y50.68%
EPS Next 3Y42.3%
5. Dividend
5.1 Amount
No dividends for 639!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:639 (12/11/2025, 7:00:00 PM)
512
-2.2 (-0.43%)
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 Cap105.42B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target654 (27.73%)
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)-2.36%
PT rev (3m)1.52%
EPS NQ rev (1m)8.97%
EPS NQ rev (3m)11.2%
EPS NY rev (1m)35.44%
EPS NY rev (3m)26.56%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.98 | ||
| Fwd PE | 40.93 | ||
| P/S | 6.24 | ||
| P/FCF | 36.16 | ||
| P/OCF | 35.61 | ||
| P/B | 13.55 | ||
| P/tB | 15.81 | ||
| EV/EBITDA | 45.62 |
EPS(TTM)5.69
EY1.11%
EPS(NY)12.51
Fwd EY2.44%
FCF(TTM)14.16
FCFY2.77%
OCF(TTM)14.38
OCFY2.81%
SpS82.07
BVpS37.78
TBVpS32.39
PEG (NY)2.73
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 | 11.22 |
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 Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
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 / 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.
What is the valuation status for 639 stock?
ChartMill assigns a valuation rating of 2 / 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 is the valuation of SPOTIFY TECHNOLOGY SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SPOTIFY TECHNOLOGY SA (639.DE) is 89.98 and the Price/Book (PB) ratio is 13.55.
Can you provide the financial health for 639 stock?
The financial health rating of SPOTIFY TECHNOLOGY SA (639.DE) is 8 / 10.