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SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis

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

612.2  +0.3 (+0.05%)

Fundamental Rating

6

Overall 639 gets a fundamental rating of 6 out of 10. We evaluated 639 against 49 industry peers in the Entertainment industry. 639 has an excellent financial health rating, but there are some minor concerns on its profitability. 639 is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

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.
In the past 5 years 639 reported 4 times negative net income.
In the past 5 years 639 always reported a positive cash flow from operatings.
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 Return On Assets of 9.19%. This is amongst the best in the industry. 639 outperforms 91.84% of its industry peers.
Looking at the Return On Equity, with a value of 18.66%, 639 belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.54%, 639 belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
Industry RankSector Rank
ROA 9.19%
ROE 18.66%
ROIC 21.54%
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 Profit Margin of 7.19%. This is in the better half of the industry: 639 outperforms 75.51% of its industry peers.
Looking at the Operating Margin, with a value of 10.51%, 639 is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
In the last couple of years the Operating Margin of 639 has grown nicely.
639's Gross Margin of 31.10% is on the low side compared to the rest of the industry. 639 is outperformed by 77.55% of its industry peers.
639's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 10.51%
PM (TTM) 7.19%
GM 31.1%
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

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.
Compared to 5 years ago, 639 has more shares outstanding
Compared to 1 year ago, 639 has an improved debt to assets ratio.
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 13.36. This indicates that 639 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 13.36, 639 belongs to the best of the industry, outperforming 91.84% of the companies in the same industry.
The Debt to FCF ratio of 639 is 0.81, which is an excellent value as it means it would take 639, only 0.81 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 639 (0.81) is better than 91.84% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that 639 is not too dependend on debt financing.
639 has a Debt to Equity ratio of 0.07. This is amongst the best in the industry. 639 outperforms 83.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.81
Altman-Z 13.36
ROIC/WACC2.89
WACC7.44%
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

639 has a Current Ratio of 1.48. 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 1.48. This is amongst the best in the industry. 639 outperforms 81.63% of its industry peers.
639 has a Quick Ratio of 1.48. 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 1.48, 639 belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.48
Quick Ratio 1.48
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 4575.00%, which is quite impressive.
Looking at the last year, 639 shows a quite strong growth in Revenue. The Revenue has grown by 17.24% in the last year.
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)4575%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.31%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.24%

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 27.60% on average per year.
The Revenue is expected to grow by 12.54% on average over the next years. This is quite good.
EPS Next Y54.47%
EPS Next 2Y51.87%
EPS Next 3Y42.75%
EPS Next 5Y27.6%
Revenue Next Year13.74%
Revenue Next 2Y14.83%
Revenue Next 3Y14.4%
Revenue Next 5Y12.54%

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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 10 20 30

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 109.13, 639 can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 639 is valued a bit cheaper than 63.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of 639 to the average of the S&P500 Index (27.30), we can say 639 is valued expensively.
639 is valuated quite expensively with a Price/Forward Earnings ratio of 48.17.
639's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, 639 is valued quite expensively.
Industry RankSector Rank
PE 109.13
Fwd PE 48.17
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 80 100

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 63.27% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 639 is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 48
EV/EBITDA 63.97
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 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 42.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)N/A
EPS Next 2Y51.87%
EPS Next 3Y42.75%

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0

5. Dividend

5.1 Amount

No dividends for 639!.
Industry RankSector Rank
Dividend Yield N/A

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SPOTIFY TECHNOLOGY SA

FRA:639 (7/8/2025, 7:00:00 PM)

612.2

+0.3 (+0.05%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)04-29 2025-04-29/bmo
Earnings (Next)07-29 2025-07-29/bmo
Inst Owners69.05%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap125.32B
Analysts75.56
Price Target595.01 (-2.81%)
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)-32.7%
Min EPS beat(2)-52.29%
Max EPS beat(2)-13.1%
EPS beat(4)1
Avg EPS beat(4)-14.82%
Min EPS beat(4)-52.29%
Max EPS beat(4)23.46%
EPS beat(8)4
Avg EPS beat(8)45.94%
EPS beat(12)4
Avg EPS beat(12)23.18%
EPS beat(16)7
Avg EPS beat(16)27.54%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.07%
Revenue beat(12)0
Avg Revenue beat(12)-1.92%
Revenue beat(16)1
Avg Revenue beat(16)-1.48%
PT rev (1m)1.77%
PT rev (3m)0.42%
EPS NQ rev (1m)-3.52%
EPS NQ rev (3m)-7.56%
EPS NY rev (1m)-3.06%
EPS NY rev (3m)-17.58%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.96%
Valuation
Industry RankSector Rank
PE 109.13
Fwd PE 48.17
P/S 7.72
P/FCF 48
P/OCF 47.67
P/B 20.06
P/tB 24.83
EV/EBITDA 63.97
EPS(TTM)5.61
EY0.92%
EPS(NY)12.71
Fwd EY2.08%
FCF(TTM)12.75
FCFY2.08%
OCF(TTM)12.84
OCFY2.1%
SpS79.27
BVpS30.52
TBVpS24.66
PEG (NY)2
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 9.19%
ROE 18.66%
ROCE 25.38%
ROIC 21.54%
ROICexc N/A
ROICexgc N/A
OM 10.51%
PM (TTM) 7.19%
GM 31.1%
FCFM 16.09%
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 Turnover1.28
Health
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.81
Debt/EBITDA 0.25
Cap/Depr 15.38%
Cap/Sales 0.11%
Interest Coverage 42.65
Cash Conversion 144.21%
Profit Quality 223.93%
Current Ratio 1.48
Quick Ratio 1.48
Altman-Z 13.36
F-Score7
WACC7.44%
ROIC/WACC2.89
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)4575%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.31%
EPS Next Y54.47%
EPS Next 2Y51.87%
EPS Next 3Y42.75%
EPS Next 5Y27.6%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.24%
Revenue Next Year13.74%
Revenue Next 2Y14.83%
Revenue Next 3Y14.4%
Revenue Next 5Y12.54%
EBIT growth 1Y909.47%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year82.88%
EBIT Next 3Y45.95%
EBIT Next 5Y32.91%
FCF growth 1Y5019.61%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y3766.18%
OCF growth 3Y85.41%
OCF growth 5Y32.05%