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SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis

FRA:639 - Deutsche Boerse Ag - LU1778762911 - Common Stock - Currency: EUR

472.1  -56.5 (-10.69%)

Fundamental Rating

6

Taking everything into account, 639 scores 6 out of 10 in our fundamental rating. 639 was compared to 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 not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

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.
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.
639.DE Yearly Net Income VS EBIT VS OCF VS FCF639.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

1.2 Ratios

639 has a better Return On Assets (9.48%) than 91.30% of its industry peers.
The Return On Equity of 639 (20.60%) is better than 82.61% of its industry peers.
639 has a Return On Invested Capital of 15.33%. This is amongst the best in the industry. 639 outperforms 93.48% of its industry peers.
Industry RankSector Rank
ROA 9.48%
ROE 20.6%
ROIC 15.33%
ROA(3y)-0.84%
ROA(5y)-2.44%
ROE(3y)-6.13%
ROE(5y)-8.14%
ROIC(3y)N/A
ROIC(5y)N/A
639.DE Yearly ROA, ROE, ROIC639.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 -400

1.3 Margins

639 has a better Profit Margin (7.26%) than 76.09% of its industry peers.
With a decent Operating Margin value of 8.71%, 639 is doing good in the industry, outperforming 76.09% of the companies in the same industry.
In the last couple of years the Operating Margin of 639 has grown nicely.
639 has a Gross Margin of 30.14%. This is in the lower half of the industry: 639 underperforms 76.09% of its industry peers.
639's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 8.71%
PM (TTM) 7.26%
GM 30.14%
OM growth 3Y107.65%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.12%
GM growth 5Y3.51%
639.DE Yearly Profit, Operating, Gross Margins639.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
639.DE Yearly Shares Outstanding639.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
639.DE Yearly Total Debt VS Total Assets639.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

639 has an Altman-Z score of 10.67. This indicates that 639 is financially healthy and has little risk of bankruptcy at the moment.
639 has a Altman-Z score of 10.67. This is amongst the best in the industry. 639 outperforms 95.65% of its industry peers.
The Debt to FCF ratio of 639 is 0.88, which is an excellent value as it means it would take 639, only 0.88 years of fcf income to pay off all of its debts.
639's Debt to FCF ratio of 0.88 is amongst the best of the industry. 639 outperforms 93.48% of its industry peers.
639 has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
639 has a Debt to Equity ratio of 0.36. This is in the better half of the industry: 639 outperforms 67.39% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 0.88
Altman-Z 10.67
ROIC/WACC2.06
WACC7.43%
639.DE Yearly LT Debt VS Equity VS FCF639.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 1.88 indicates that 639 should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.88, 639 belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
A Quick Ratio of 1.88 indicates that 639 should not have too much problems paying its short term obligations.
The Quick ratio of 639 (1.88) is better than 82.61% of its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.88
639.DE Yearly Current Assets VS Current Liabilites639.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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6

3. Growth

3.1 Past

639 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 374.13%, which is quite impressive.
639 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.31%.
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)374.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%375.68%
Revenue 1Y (TTM)18.31%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.55%

3.2 Future

The Earnings Per Share is expected to grow by 18.27% on average over the next years. This is quite good.
639 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.32% yearly.
EPS Next Y88.15%
EPS Next 2Y56.16%
EPS Next 3Y44.82%
EPS Next 5Y18.27%
Revenue Next Year16.05%
Revenue Next 2Y15.7%
Revenue Next 3Y14.62%
Revenue Next 5Y14.32%

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.
639.DE Yearly Revenue VS Estimates639.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
639.DE Yearly EPS VS Estimates639.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 -5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 85.68, the valuation of 639 can be described as expensive.
Based on the Price/Earnings ratio, 639 is valued a bit cheaper than 63.04% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 639 is valued quite expensively.
With a Price/Forward Earnings ratio of 45.54, 639 can be considered very expensive at the moment.
639's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 639 to the average of the S&P500 Index (22.10), we can say 639 is valued expensively.
Industry RankSector Rank
PE 85.68
Fwd PE 45.54
639.DE Price Earnings VS Forward Price Earnings639.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

60.87% of the companies in the same industry are cheaper than 639, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 639 is valued a bit cheaper than the industry average as 63.04% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 42.31
EV/EBITDA 59.58
639.DE Per share data639.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
639 has a very decent profitability rating, which may justify a higher PE ratio.
639's earnings are expected to grow with 44.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y56.16%
EPS Next 3Y44.82%

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0

5. Dividend

5.1 Amount

639 does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SPOTIFY TECHNOLOGY SA

FRA:639 (3/7/2025, 7:00:00 PM)

472.1

-56.5 (-10.69%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-04 2025-02-04/bmo
Earnings (Next)N/A N/A
Inst Owners67.74%
Inst Owner ChangeN/A
Ins Owners16.27%
Ins Owner ChangeN/A
Market Cap96.64B
Analysts75.91
Price Target602.56 (27.63%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-15.23%
Min EPS beat(2)-17.36%
Max EPS beat(2)-13.1%
EPS beat(4)2
Avg EPS beat(4)9.71%
Min EPS beat(4)-17.36%
Max EPS beat(4)45.84%
EPS beat(8)4
Avg EPS beat(8)48.21%
EPS beat(12)5
Avg EPS beat(12)43.05%
EPS beat(16)8
Avg EPS beat(16)33.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.18%
Revenue beat(12)0
Avg Revenue beat(12)-1.75%
Revenue beat(16)1
Avg Revenue beat(16)-1.46%
PT rev (1m)26.43%
PT rev (3m)32.26%
EPS NQ rev (1m)14.09%
EPS NQ rev (3m)15.32%
EPS NY rev (1m)10.84%
EPS NY rev (3m)12.33%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)1.64%
Valuation
Industry RankSector Rank
PE 85.68
Fwd PE 45.54
P/S 6.17
P/FCF 42.31
P/OCF 42
P/B 17.49
P/tB 22.6
EV/EBITDA 59.58
EPS(TTM)5.51
EY1.17%
EPS(NY)10.37
Fwd EY2.2%
FCF(TTM)11.16
FCFY2.36%
OCF(TTM)11.24
OCFY2.38%
SpS76.56
BVpS26.99
TBVpS20.89
PEG (NY)0.97
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 9.48%
ROE 20.6%
ROCE 18.07%
ROIC 15.33%
ROICexc 1082.59%
ROICexgc N/A
OM 8.71%
PM (TTM) 7.26%
GM 30.14%
FCFM 14.57%
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover1.31
Health
Industry RankSector Rank
Debt/Equity 0.36
Debt/FCF 0.88
Debt/EBITDA 1.35
Cap/Depr 14.05%
Cap/Sales 0.11%
Interest Coverage 37.92
Cash Conversion 154.85%
Profit Quality 200.7%
Current Ratio 1.88
Quick Ratio 1.88
Altman-Z 10.67
F-Score7
WACC7.43%
ROIC/WACC2.06
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)374.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%375.68%
EPS Next Y88.15%
EPS Next 2Y56.16%
EPS Next 3Y44.82%
EPS Next 5Y18.27%
Revenue 1Y (TTM)18.31%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.55%
Revenue Next Year16.05%
Revenue Next 2Y15.7%
Revenue Next 3Y14.62%
Revenue Next 5Y14.32%
EBIT growth 1Y1329.73%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year84.03%
EBIT Next 3Y44.42%
EBIT Next 5Y21.75%
FCF growth 1Y238.87%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y238.38%
OCF growth 3Y85.41%
OCF growth 5Y32.05%