SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis

NYSE:SPOT • LU1778762911

458.34 USD
+12.55 (+2.82%)
At close: Feb 13, 2026
457.18 USD
-1.16 (-0.25%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, SPOT scores 6 out of 10 in our fundamental rating. SPOT was compared to 80 industry peers in the Entertainment industry. SPOT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SPOT has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • SPOT had positive earnings in the past year.
  • In the past year SPOT had a positive cash flow from operations.
  • In multiple years SPOT reported negative net income over the last 5 years.
  • SPOT had a positive operating cash flow in each of the past 5 years.
SPOT Yearly Net Income VS EBIT VS OCF VS FCFSPOT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

1.2 Ratios

  • SPOT has a Return On Assets of 14.73%. This is amongst the best in the industry. SPOT outperforms 91.25% of its industry peers.
  • With an excellent Return On Equity value of 26.56%, SPOT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • The Return On Invested Capital of SPOT (19.44%) is better than 96.25% of its industry peers.
Industry RankSector Rank
ROA 14.73%
ROE 26.56%
ROIC 19.44%
ROA(3y)5.95%
ROA(5y)2.35%
ROE(3y)8.69%
ROE(5y)1.31%
ROIC(3y)N/A
ROIC(5y)N/A
SPOT Yearly ROA, ROE, ROICSPOT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 -200 -400

1.3 Margins

  • SPOT has a better Profit Margin (12.87%) than 87.50% of its industry peers.
  • With a decent Operating Margin value of 12.79%, SPOT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • SPOT has a worse Gross Margin (31.98%) than 65.00% of its industry peers.
  • SPOT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.79%
PM (TTM) 12.87%
GM 31.98%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.62%
GM growth 5Y4.57%
SPOT Yearly Profit, Operating, Gross MarginsSPOT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SPOT is creating value.
  • The number of shares outstanding for SPOT has been increased compared to 1 year ago.
  • The number of shares outstanding for SPOT has been increased compared to 5 years ago.
  • SPOT has a better debt/assets ratio than last year.
SPOT Yearly Shares OutstandingSPOT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
SPOT Yearly Total Debt VS Total AssetsSPOT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 8.84 indicates that SPOT is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.84, SPOT belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
  • SPOT has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.68, SPOT belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
  • A Debt/Equity ratio of 0.05 indicates that SPOT is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.05, SPOT is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.68
Altman-Z 8.84
ROIC/WACC2.56
WACC7.61%
SPOT Yearly LT Debt VS Equity VS FCFSPOT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.72 indicates that SPOT should not have too much problems paying its short term obligations.
  • The Current ratio of SPOT (1.72) is better than 71.25% of its industry peers.
  • A Quick Ratio of 1.72 indicates that SPOT should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.72, SPOT is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.72
Quick Ratio 1.72
SPOT Yearly Current Assets VS Current LiabilitesSPOT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.96%, which is quite impressive.
  • Looking at the last year, SPOT shows a quite strong growth in Revenue. The Revenue has grown by 9.65% in the last year.
  • The Revenue has been growing by 16.88% on average over the past years. This is quite good.
EPS 1Y (TTM)49.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%146.18%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.59%
Revenue growth 5Y16.88%
Sales Q2Q%4.41%

3.2 Future

  • Based on estimates for the next years, SPOT will show a very strong growth in Earnings Per Share. The EPS will grow by 22.33% on average per year.
  • The Revenue is expected to grow by 12.38% on average over the next years. This is quite good.
EPS Next Y49.86%
EPS Next 2Y37.85%
EPS Next 3Y30.4%
EPS Next 5Y22.33%
Revenue Next Year14.29%
Revenue Next 2Y14.16%
Revenue Next 3Y13.5%
Revenue Next 5Y12.38%

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.
SPOT Yearly Revenue VS EstimatesSPOT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
SPOT Yearly EPS VS EstimatesSPOT Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 10 20 30

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 46.72, the valuation of SPOT can be described as expensive.
  • SPOT's Price/Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 72.50% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of SPOT to the average of the S&P500 Index (27.97), we can say SPOT is valued expensively.
  • A Price/Forward Earnings ratio of 31.17 indicates a quite expensive valuation of SPOT.
  • 72.50% of the companies in the same industry are more expensive than SPOT, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.96. SPOT is around the same levels.
Industry RankSector Rank
PE 46.72
Fwd PE 31.17
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • SPOT's Enterprise Value to EBITDA is on the same level as the industry average.
  • SPOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 77.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 27.67
EV/EBITDA 28.51
SPOT Per share dataSPOT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • SPOT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • SPOT has a very decent profitability rating, which may justify a higher PE ratio.
  • SPOT's earnings are expected to grow with 30.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y37.85%
EPS Next 3Y30.4%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • SPOT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

SPOTIFY TECHNOLOGY SA

NYSE:SPOT (2/13/2026, 8:04:00 PM)

After market: 457.18 -1.16 (-0.25%)

458.34

+12.55 (+2.82%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-10
Earnings (Next)04-21
Inst Owners67.66%
Inst Owner Change-0.98%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap94.37B
Revenue(TTM)17.19B
Net Income(TTM)2.21B
Analysts80.85
Price Target738.78 (61.19%)
Short Float %4%
Short Ratio2.93
Dividend
Industry RankSector 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)2
Avg EPS beat(2)58.99%
Min EPS beat(2)55.15%
Max EPS beat(2)62.82%
EPS beat(4)2
Avg EPS beat(4)-14%
Min EPS beat(4)-121.7%
Max EPS beat(4)62.82%
EPS beat(8)4
Avg EPS beat(8)-2.15%
EPS beat(12)6
Avg EPS beat(12)27.47%
EPS beat(16)7
Avg EPS beat(16)28.79%
Revenue beat(2)0
Avg Revenue beat(2)-2.49%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-2.71%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-2.25%
Revenue beat(12)0
Avg Revenue beat(12)-2.36%
Revenue beat(16)0
Avg Revenue beat(16)-1.99%
PT rev (1m)-4.25%
PT rev (3m)-3.51%
EPS NQ rev (1m)1.91%
EPS NQ rev (3m)11.31%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)36.22%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.28%
Valuation
Industry RankSector Rank
PE 46.72
Fwd PE 31.17
P/S 4.62
P/FCF 27.67
P/OCF 27.1
P/B 9.54
P/tB 11.03
EV/EBITDA 28.51
EPS(TTM)9.81
EY2.14%
EPS(NY)14.7
Fwd EY3.21%
FCF(TTM)16.56
FCFY3.61%
OCF(TTM)16.92
OCFY3.69%
SpS99.11
BVpS48.03
TBVpS41.55
PEG (NY)0.94
PEG (5Y)N/A
Graham Number102.97
Profitability
Industry RankSector Rank
ROA 14.73%
ROE 26.56%
ROCE 24.61%
ROIC 19.44%
ROICexc N/A
ROICexgc N/A
OM 12.79%
PM (TTM) 12.87%
GM 31.98%
FCFM 16.71%
ROA(3y)5.95%
ROA(5y)2.35%
ROE(3y)8.69%
ROE(5y)1.31%
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 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.62%
GM growth 5Y4.57%
F-Score7
Asset Turnover1.14
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.68
Debt/EBITDA 0.19
Cap/Depr 59.8%
Cap/Sales 0.35%
Interest Coverage 61.06
Cash Conversion 127.52%
Profit Quality 129.84%
Current Ratio 1.72
Quick Ratio 1.72
Altman-Z 8.84
F-Score7
WACC7.61%
ROIC/WACC2.56
Cap/Depr(3y)25.88%
Cap/Depr(5y)31.84%
Cap/Sales(3y)0.17%
Cap/Sales(5y)0.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)49.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%146.18%
EPS Next Y49.86%
EPS Next 2Y37.85%
EPS Next 3Y30.4%
EPS Next 5Y22.33%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.59%
Revenue growth 5Y16.88%
Sales Q2Q%4.41%
Revenue Next Year14.29%
Revenue Next 2Y14.16%
Revenue Next 3Y13.5%
Revenue Next 5Y12.38%
EBIT growth 1Y61.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year48.62%
EBIT Next 3Y28.05%
EBIT Next 5Y20.93%
FCF growth 1Y25.74%
FCF growth 3Y415.22%
FCF growth 5Y73.82%
OCF growth 1Y27.47%
OCF growth 3Y299.5%
OCF growth 5Y62.48%

SPOTIFY TECHNOLOGY SA / SPOT FAQ

What is the fundamental rating for SPOT stock?

ChartMill assigns a fundamental rating of 6 / 10 to SPOT.


What is the valuation status for SPOT stock?

ChartMill assigns a valuation rating of 5 / 10 to SPOTIFY TECHNOLOGY SA (SPOT). This can be considered as Fairly Valued.


Can you provide the profitability details for SPOTIFY TECHNOLOGY SA?

SPOTIFY TECHNOLOGY SA (SPOT) has a profitability rating of 6 / 10.


What is the financial health of SPOTIFY TECHNOLOGY SA (SPOT) stock?

The financial health rating of SPOTIFY TECHNOLOGY SA (SPOT) is 7 / 10.