SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
Europe - FRA:639 - LU1778762911 - Common Stock
585 EUR
-7.4 (-1.25%)
639 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 46 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 is quite expensive at the moment. It does show a decent growth rate.
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.
639 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
639's Return On Assets of 5.99% is fine compared to the rest of the industry. 639 outperforms 78.26% of its industry peers.
639 has a better Return On Equity (12.16%) than 69.57% of its industry peers.
639 has a better Return On Invested Capital (21.90%) than 93.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 12.16% | ||
| ROIC | 21.9% |
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
639's Profit Margin of 4.85% is fine compared to the rest of the industry. 639 outperforms 65.22% of its industry peers.
With a decent Operating Margin value of 11.11%, 639 is doing good in the industry, outperforming 69.57% of the companies in the same industry.
639's Operating Margin has improved in the last couple of years.
639's Gross Margin of 31.63% is on the low side compared to the rest of the industry. 639 is outperformed by 76.09% of its industry peers.
639's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.11% | ||
| PM (TTM) | 4.85% | ||
| GM | 31.63% |
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.
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.
Compared to 1 year ago, 639 has an improved debt to assets ratio.
2.2 Solvency
639 has an Altman-Z score of 12.16. This indicates that 639 is financially healthy and has little risk of bankruptcy at the moment.
639 has a better Altman-Z score (12.16) than 93.48% of its industry peers.
639 has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.84, 639 belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
639 has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of 639 (0.07) is better than 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 12.16 |
ROIC/WACC2.95
WACC7.43%
2.3 Liquidity
639 has a Current Ratio of 1.47. This is a normal value and indicates that 639 is financially healthy and should not expect problems in meeting its short term obligations.
639's Current ratio of 1.47 is amongst the best of the industry. 639 outperforms 80.43% of its industry peers.
A Quick Ratio of 1.47 indicates that 639 should not have too much problems paying its short term obligations.
639 has a Quick ratio of 1.47. This is amongst the best in the industry. 639 outperforms 80.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
639 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.67%, which is quite impressive.
The Revenue has grown by 14.80% in the past year. This is quite good.
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)28.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-131.58%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
3.2 Future
The Earnings Per Share is expected to grow by 28.35% on average over the next years. This is a very strong growth
Based on estimates for the next years, 639 will show a quite strong growth in Revenue. The Revenue will grow by 11.53% on average per year.
EPS Next Y5.06%
EPS Next 2Y46.49%
EPS Next 3Y42.88%
EPS Next 5Y28.35%
Revenue Next Year10.32%
Revenue Next 2Y12.96%
Revenue Next 3Y13.38%
Revenue Next 5Y11.53%
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
A Price/Earnings ratio of 151.55 indicates a quite expensive valuation of 639.
639's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.20, 639 is valued quite expensively.
639 is valuated quite expensively with a Price/Forward Earnings ratio of 49.48.
639's Price/Forward Earnings is on the same level as the industry average.
639's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 151.55 | ||
| Fwd PE | 49.48 |
4.2 Price Multiples
63.04% of the companies in the same industry are cheaper than 639, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as 639.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.47 | ||
| EV/EBITDA | 56.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
639's earnings are expected to grow with 42.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)29.98
PEG (5Y)N/A
EPS Next 2Y46.49%
EPS Next 3Y42.88%
5. Dividend
5.1 Amount
No dividends for 639!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:639 (9/17/2025, 7:00:00 PM)
585
-7.4 (-1.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners69.85%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap119.76B
Analysts77.83
Price Target645.02 (10.26%)
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)0
Avg EPS beat(2)-87%
Min EPS beat(2)-121.7%
Max EPS beat(2)-52.29%
EPS beat(4)0
Avg EPS beat(4)-51.11%
Min EPS beat(4)-121.7%
Max EPS beat(4)-13.1%
EPS beat(8)4
Avg EPS beat(8)48.3%
EPS beat(12)4
Avg EPS beat(12)15.65%
EPS beat(16)6
Avg EPS beat(16)16.82%
Revenue beat(2)0
Avg Revenue beat(2)-2.94%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.16%
Revenue beat(12)0
Avg Revenue beat(12)-2.2%
Revenue beat(16)1
Avg Revenue beat(16)-1.7%
PT rev (1m)-2.35%
PT rev (3m)12.74%
EPS NQ rev (1m)-3.71%
EPS NQ rev (3m)-20.39%
EPS NY rev (1m)-31.48%
EPS NY rev (3m)-34.07%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-6.22%
Revenue NY rev (1m)-3.02%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 151.55 | ||
| Fwd PE | 49.48 | ||
| P/S | 7.21 | ||
| P/FCF | 42.47 | ||
| P/OCF | 42.08 | ||
| P/B | 18.07 | ||
| P/tB | 21.71 | ||
| EV/EBITDA | 56.46 |
EPS(TTM)3.86
EY0.66%
EPS(NY)11.82
Fwd EY2.02%
FCF(TTM)13.78
FCFY2.35%
OCF(TTM)13.9
OCFY2.38%
SpS81.15
BVpS32.37
TBVpS26.95
PEG (NY)29.98
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 12.16% | ||
| ROCE | 25.81% | ||
| ROIC | 21.9% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 11.11% | ||
| PM (TTM) | 4.85% | ||
| GM | 31.63% | ||
| FCFM | 16.97% |
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-Score6
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 23.01% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 49.89 | ||
| Cash Conversion | 145.28% | ||
| Profit Quality | 349.88% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 12.16 |
F-Score6
WACC7.43%
ROIC/WACC2.95
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)28.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-131.58%
EPS Next Y5.06%
EPS Next 2Y46.49%
EPS Next 3Y42.88%
EPS Next 5Y28.35%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
Revenue Next Year10.32%
Revenue Next 2Y12.96%
Revenue Next 3Y13.38%
Revenue Next 5Y11.53%
EBIT growth 1Y225.57%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year67.77%
EBIT Next 3Y44.4%
EBIT Next 5Y29.68%
FCF growth 1Y9971.43%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y6676.19%
OCF growth 3Y85.41%
OCF growth 5Y32.05%