SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
FRA:639 - Deutsche Boerse Ag - LU1778762911 - Common Stock - Currency: EUR
Taking everything into account, 639 scores 5 out of 10 in our fundamental rating. 639 was compared to 44 industry peers in the Entertainment industry. 639 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 639 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year 639 was profitable.
In the past year 639 had a positive cash flow from operations.
639 had negative earnings in each of the past 5 years.
Each year in the past 5 years 639 had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.64%, 639 is doing good in the industry, outperforming 77.50% of the companies in the same industry.
The Return On Equity of 639 (15.13%) is better than 70.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.80%, 639 is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 15.13% | ||
| ROIC | 10.8% |
ROA(3y)-4.16%
ROA(5y)-5.06%
ROE(3y)-13.53%
ROE(5y)-14.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
639 has a Profit Margin (4.64%) which is comparable to the rest of the industry.
639 has a Operating Margin of 6.55%. This is in the better half of the industry: 639 outperforms 62.50% of its industry peers.
639 has a worse Gross Margin (28.68%) than 82.50% of its industry peers.
639's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 4.64% | ||
| GM | 28.68% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.31%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 639 is still creating some value.
639 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 639 has more shares outstanding
Compared to 1 year ago, 639 has an improved debt to assets ratio.
2.2 Solvency
639 has an Altman-Z score of 13.58. This indicates that 639 is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.58, 639 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of 639 is 0.99, which is an excellent value as it means it would take 639, only 0.99 years of fcf income to pay off all of its debts.
639's Debt to FCF ratio of 0.99 is amongst the best of the industry. 639 outperforms 87.50% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that 639 is not too dependend on debt financing.
639 has a better Debt to Equity ratio (0.39) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 13.58 |
ROIC/WACC1.5
WACC7.2%
2.3 Liquidity
639 has a Current Ratio of 1.71. 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 Current ratio of 1.71. This is amongst the best in the industry. 639 outperforms 82.50% of its industry peers.
639 has a Quick Ratio of 1.71. This is a normal value and indicates that 639 is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.71, 639 belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
639 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 208.99%, which is quite impressive.
639 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.52%.
639 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.29% yearly.
EPS 1Y (TTM)208.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%339.39%
Revenue 1Y (TTM)18.52%
Revenue growth 3Y18.9%
Revenue growth 5Y20.29%
Sales Q2Q%18.8%
3.2 Future
Based on estimates for the next years, 639 will show a very strong growth in Earnings Per Share. The EPS will grow by 56.32% on average per year.
Based on estimates for the next years, 639 will show a quite strong growth in Revenue. The Revenue will grow by 13.86% on average per year.
EPS Next Y398.57%
EPS Next 2Y157.94%
EPS Next 3Y98.67%
EPS Next 5Y56.32%
Revenue Next Year17.29%
Revenue Next 2Y16.12%
Revenue Next 3Y15.49%
Revenue Next 5Y13.86%
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
The Price/Earnings ratio is 142.72, which means the current valuation is very expensive for 639.
The rest of the industry has a similar Price/Earnings ratio as 639.
When comparing the Price/Earnings ratio of 639 to the average of the S&P500 Index (28.47), we can say 639 is valued expensively.
A Price/Forward Earnings ratio of 62.87 indicates a quite expensive valuation of 639.
Based on the Price/Forward Earnings ratio, 639 is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
639 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 142.72 | ||
| Fwd PE | 62.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 639 indicates a slightly more expensive valuation: 639 is more expensive than 75.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 639.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.49 | ||
| EV/EBITDA | 100.89 |
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.
A more expensive valuation may be justified as 639's earnings are expected to grow with 98.67% in the coming years.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y157.94%
EPS Next 3Y98.67%
5. Dividend
5.1 Amount
No dividends for 639!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPOTIFY TECHNOLOGY SA
FRA:639 (2/4/2025, 7:00:00 PM)
588
+52.8 (+9.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners62.42%
Inst Owner ChangeN/A
Ins Owners17.71%
Ins Owner ChangeN/A
Market Cap118.08B
Analysts78.22
Price Target476.6 (-18.95%)
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)3.05%
Min EPS beat(2)-17.36%
Max EPS beat(2)23.46%
EPS beat(4)3
Avg EPS beat(4)81.28%
Min EPS beat(4)-17.36%
Max EPS beat(4)273.18%
EPS beat(8)4
Avg EPS beat(8)48.88%
EPS beat(12)6
Avg EPS beat(12)48.44%
EPS beat(16)8
Avg EPS beat(16)32.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-2.36%
Revenue beat(4)0
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.31%
Revenue beat(12)0
Avg Revenue beat(12)-1.74%
Revenue beat(16)1
Avg Revenue beat(16)-1.48%
PT rev (1m)1.03%
PT rev (3m)26.61%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)36.08%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 142.72 | ||
| Fwd PE | 62.87 | ||
| P/S | 7.82 | ||
| P/FCF | 65.49 | ||
| P/OCF | 65.06 | ||
| P/B | 25.49 | ||
| P/tB | 34.25 | ||
| EV/EBITDA | 100.89 |
EPS(TTM)4.12
EY0.7%
EPS(NY)9.35
Fwd EY1.59%
FCF(TTM)8.98
FCFY1.53%
OCF(TTM)9.04
OCFY1.54%
SpS75.21
BVpS23.07
TBVpS17.17
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 15.13% | ||
| ROCE | 15.34% | ||
| ROIC | 10.8% | ||
| ROICexc | 189.72% | ||
| ROICexgc | N/A | ||
| OM | 6.55% | ||
| PM (TTM) | 4.64% | ||
| GM | 28.68% | ||
| FCFM | 11.94% |
ROA(3y)-4.16%
ROA(5y)-5.06%
ROE(3y)-13.53%
ROE(5y)-14.09%
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 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.31%
GM growth 5Y0.06%
F-Score7
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 9.6% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 27.47 | ||
| Cash Conversion | 162.93% | ||
| Profit Quality | 257.2% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 13.58 |
F-Score7
WACC7.2%
ROIC/WACC1.5
Cap/Depr(3y)28.45%
Cap/Depr(5y)62.16%
Cap/Sales(3y)0.38%
Cap/Sales(5y)0.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)208.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%339.39%
EPS Next Y398.57%
EPS Next 2Y157.94%
EPS Next 3Y98.67%
EPS Next 5Y56.32%
Revenue 1Y (TTM)18.52%
Revenue growth 3Y18.9%
Revenue growth 5Y20.29%
Sales Q2Q%18.8%
Revenue Next Year17.29%
Revenue Next 2Y16.12%
Revenue Next 3Y15.49%
Revenue Next 5Y13.86%
EBIT growth 1Y321.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year451.76%
EBIT Next 3Y107.04%
EBIT Next 5Y59.95%
FCF growth 1Y806.03%
FCF growth 3Y55%
FCF growth 5Y25.21%
OCF growth 1Y672.34%
OCF growth 3Y37.95%
OCF growth 5Y14.6%