SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:639 - LU1778762911 - Common Stock
477.4 EUR
-17.65 (-3.57%)
Taking everything into account, 639 scores 6 out of 10 in our fundamental rating. 639 was compared to 44 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
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
639 has a better Return On Assets (9.56%) than 90.91% of its industry peers.
The Return On Equity of 639 (18.06%) is better than 79.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.82%, 639 belongs to the top of the industry, outperforming 93.18% 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
639 has a Profit Margin of 8.32%. This is in the better half of the industry: 639 outperforms 75.00% of its industry peers.
639's Operating Margin of 11.68% is fine compared to the rest of the industry. 639 outperforms 77.27% of its industry peers.
In the last couple of years the Operating Margin of 639 has grown nicely.
With a Gross Margin value of 31.75%, 639 is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 639 is creating value.
639 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 639 has more shares outstanding
639 has a better debt/assets ratio than last year.
2.2 Solvency
639 has an Altman-Z score of 10.61. This indicates that 639 is financially healthy and has little risk of bankruptcy at the moment.
639's Altman-Z score of 10.61 is amongst the best of the industry. 639 outperforms 93.18% of its industry peers.
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 93.18% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that 639 is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.06, 639 belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.61 |
ROIC/WACC2.67
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.61 indicates that 639 should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.61, 639 belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
639 has a Quick 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 better Quick ratio (1.61) than 81.82% of its industry peers.
| 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
Based on estimates for the next years, 639 will show a very strong growth in Earnings Per Share. The EPS will grow by 29.72% on average per year.
Based on estimates for the next years, 639 will show a quite strong growth in Revenue. The Revenue will grow by 11.87% on average per year.
EPS Next Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.72%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
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 83.90, which means the current valuation is very expensive for 639.
61.36% of the companies in the same industry are more expensive than 639, based on the Price/Earnings ratio.
639's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.41.
639 is valuated quite expensively with a Price/Forward Earnings ratio of 40.68.
639's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.40. 639 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.9 | ||
| Fwd PE | 40.68 |
4.2 Price Multiples
61.36% of the companies in the same industry are cheaper than 639, based on the Enterprise Value to EBITDA ratio.
639's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.72 | ||
| EV/EBITDA | 42.28 |
4.3 Compensation for Growth
639 has a very decent profitability rating, which may justify a higher PE ratio.
639's earnings are expected to grow with 41.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.94%
EPS Next 3Y41.06%
5. Dividend
5.1 Amount
No dividends for 639!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:639 (12/4/2025, 7:00:00 PM)
477.4
-17.65 (-3.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners70.11%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap98.29B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts78.3
Price Target672.18 (40.8%)
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)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)3.44%
PT rev (3m)4.34%
EPS NQ rev (1m)8.36%
EPS NQ rev (3m)8.73%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)-6.56%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.9 | ||
| Fwd PE | 40.68 | ||
| P/S | 5.82 | ||
| P/FCF | 33.72 | ||
| P/OCF | 33.21 | ||
| P/B | 12.64 | ||
| P/tB | 14.74 | ||
| EV/EBITDA | 42.28 |
EPS(TTM)5.69
EY1.19%
EPS(NY)11.74
Fwd EY2.46%
FCF(TTM)14.16
FCFY2.97%
OCF(TTM)14.38
OCFY3.01%
SpS82.07
BVpS37.78
TBVpS32.39
PEG (NY)N/A
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 | 10.61 |
F-Score6
WACC7.42%
ROIC/WACC2.67
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 Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.72%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
Revenue Next 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year63.74%
EBIT Next 3Y43.76%
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 6 / 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 83.9 and the Price/Book (PB) ratio is 12.64.
Can you provide the financial health for 639 stock?
The financial health rating of SPOTIFY TECHNOLOGY SA (639.DE) is 8 / 10.