SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:639 - LU1778762911 - Common Stock
492.65 EUR
-1.45 (-0.29%)
Taking everything into account, 639 scores 5 out of 10 in our fundamental rating. 639 was compared to 51 industry peers in the Entertainment industry. 639 has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, 639 is valued expensive at the moment.
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 4 of the past 5 years.
639 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 639 (9.56%) is better than 90.20% of its industry peers.
639 has a Return On Equity of 18.06%. This is amongst the best in the industry. 639 outperforms 80.39% of its industry peers.
With an excellent Return On Invested Capital value of 19.82%, 639 belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
| 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 70.59% of its industry peers.
639 has a Operating Margin of 11.68%. This is in the better half of the industry: 639 outperforms 72.55% of its industry peers.
639's Operating Margin has improved in the last couple of years.
The Gross Margin of 639 (31.75%) is worse than 76.47% 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
639 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
639 has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 639 has been increased compared to 5 years ago.
The debt/assets ratio for 639 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.87 indicates that 639 is not in any danger for bankruptcy at the moment.
639's Altman-Z score of 10.87 is amongst the best of the industry. 639 outperforms 98.04% of its industry peers.
639 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.
639's Debt to FCF ratio of 0.75 is amongst the best of the industry. 639 outperforms 88.24% of its industry peers.
639 has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
639's Debt to Equity ratio of 0.06 is amongst the best of the industry. 639 outperforms 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.87 |
ROIC/WACC2.65
WACC7.48%
2.3 Liquidity
639 has a Current 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 Current ratio of 1.61. This is in the better half of the industry: 639 outperforms 78.43% of its industry peers.
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 is in the better half of the industry, outperforming 78.43% 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, 639 shows a quite strong growth in Revenue. The Revenue has grown by 11.89% in the last year.
639 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.30% yearly.
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.
The Revenue is expected to grow by 11.87% on average over the next years. This is quite good.
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
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 86.58, the valuation of 639 can be described as expensive.
639's Price/Earnings ratio is a bit cheaper when compared to the industry. 639 is cheaper than 60.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of 639 to the average of the S&P500 Index (26.57), we can say 639 is valued expensively.
639 is valuated quite expensively with a Price/Forward Earnings ratio of 39.38.
The rest of the industry has a similar Price/Forward Earnings ratio as 639.
When comparing the Price/Forward Earnings ratio of 639 to the average of the S&P500 Index (24.04), we can say 639 is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.58 | ||
| Fwd PE | 39.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 639 is valued a bit more expensive than 60.78% of the companies 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 | 34.8 | ||
| EV/EBITDA | 43.7 |
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)2.63
PEG (5Y)N/A
EPS Next 2Y50.68%
EPS Next 3Y42.3%
5. Dividend
5.1 Amount
639 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:639 (12/23/2025, 7:00:00 PM)
492.65
-1.45 (-0.29%)
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 Cap101.43B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target658.04 (33.57%)
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)-0.27%
PT rev (3m)2.02%
EPS NQ rev (1m)2.27%
EPS NQ rev (3m)10.72%
EPS NY rev (1m)35.44%
EPS NY rev (3m)26.56%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.58 | ||
| Fwd PE | 39.38 | ||
| P/S | 6 | ||
| P/FCF | 34.8 | ||
| P/OCF | 34.27 | ||
| P/B | 13.04 | ||
| P/tB | 15.21 | ||
| EV/EBITDA | 43.7 |
EPS(TTM)5.69
EY1.15%
EPS(NY)12.51
Fwd EY2.54%
FCF(TTM)14.16
FCFY2.87%
OCF(TTM)14.38
OCFY2.92%
SpS82.07
BVpS37.78
TBVpS32.39
PEG (NY)2.63
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 | 10.87 |
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 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 5 / 10 to 639.DE.
What is the valuation status for 639 stock?
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 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 86.58 and the Price/Book (PB) ratio is 13.04.
Can you provide the financial health for 639 stock?
The financial health rating of SPOTIFY TECHNOLOGY SA (639.DE) is 7 / 10.