SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:639 - LU1778762911 - Common Stock
492.65 EUR
-1.45 (-0.29%)
Overall 639 gets a fundamental rating of 5 out of 10. We evaluated 639 against 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
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.
639 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
639's Return On Assets of 9.56% is amongst the best of the industry. 639 outperforms 90.20% of its industry peers.
With an excellent Return On Equity value of 18.06%, 639 belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.82%, 639 belongs to the top 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.
The Operating Margin of 639 (11.68%) is better than 72.55% 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 76.47% of its industry peers.
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.
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.
Looking at the Altman-Z score, with a value of 10.87, 639 belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
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.
639 has a Debt to FCF ratio of 0.75. This is amongst the best in the industry. 639 outperforms 88.24% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that 639 is not too dependend on debt financing.
The Debt to Equity ratio of 639 (0.06) is better than 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.
The Current ratio of 639 (1.61) is better than 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.
639 has a Quick ratio of 1.61. This is in the better half of the industry: 639 outperforms 78.43% 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%.
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 29.72% on average over the next years. This is a very strong growth
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
The Price/Earnings ratio is 86.58, which means the current valuation is very expensive for 639.
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.
A Price/Forward Earnings ratio of 39.38 indicates a quite expensive valuation of 639.
639's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, 639 is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.58 | ||
| Fwd PE | 39.38 |
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 60.78% 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 | 34.8 | ||
| EV/EBITDA | 43.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 639 may justify a higher PE ratio.
639's earnings are expected to grow with 42.30% in the coming years. This may justify a more expensive valuation.
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.