SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - NYSE:SPOT - LU1778762911 - Common Stock
629.6 USD
-14.49 (-2.25%)
623.2 USD
-6.4 (-1.02%)
Overall SPOT gets a fundamental rating of 6 out of 10. We evaluated SPOT against 79 industry peers in the Entertainment industry. SPOT has an excellent financial health rating, but there are some minor concerns on its profitability. SPOT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SPOT was profitable.
SPOT had a positive operating cash flow in the past year.
SPOT had negative earnings in 4 of the past 5 years.
SPOT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPOT's Return On Assets of 5.99% is amongst the best of the industry. SPOT outperforms 82.28% of its industry peers.
Looking at the Return On Equity, with a value of 12.16%, SPOT belongs to the top of the industry, outperforming 81.01% of the companies in the same industry.
SPOT has a better Return On Invested Capital (21.90%) than 97.47% 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
SPOT has a Profit Margin of 4.85%. This is in the better half of the industry: SPOT outperforms 72.15% of its industry peers.
SPOT has a better Operating Margin (11.11%) than 73.42% of its industry peers.
SPOT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.63%, SPOT is not doing good in the industry: 65.82% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SPOT has grown nicely.
| 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), SPOT is creating value.
The number of shares outstanding for SPOT has been increased compared to 1 year ago.
Compared to 5 years ago, SPOT has more shares outstanding
Compared to 1 year ago, SPOT has an improved debt to assets ratio.
2.2 Solvency
SPOT has an Altman-Z score of 11.70. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.70, SPOT belongs to the top of the industry, outperforming 92.41% of the companies in the same industry.
SPOT 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.
SPOT has a better Debt to FCF ratio (0.84) than 83.54% of its industry peers.
SPOT has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.07, SPOT is in the better half of the industry, outperforming 63.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 11.7 |
ROIC/WACC2.93
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.47 indicates that SPOT should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.47, SPOT is doing good in the industry, outperforming 60.76% of the companies in the same industry.
SPOT has a Quick Ratio of 1.47. This is a normal value and indicates that SPOT is financially healthy and should not expect problems in meeting its short term obligations.
SPOT's Quick ratio of 1.47 is fine compared to the rest of the industry. SPOT outperforms 63.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.67% over the past year.
Looking at the last year, SPOT shows a quite strong growth in Revenue. The Revenue has grown by 14.80% in the last year.
Measured over the past years, SPOT 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
Based on estimates for the next years, SPOT will show a very strong growth in Earnings Per Share. The EPS will grow by 28.95% on average per year.
Based on estimates for the next years, SPOT will show a quite strong growth in Revenue. The Revenue will grow by 12.06% on average per year.
EPS Next Y-0.06%
EPS Next 2Y46%
EPS Next 3Y40.95%
EPS Next 5Y28.95%
Revenue Next Year9.84%
Revenue Next 2Y12.77%
Revenue Next 3Y13.24%
Revenue Next 5Y12.06%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 141.80, which means the current valuation is very expensive for SPOT.
The rest of the industry has a similar Price/Earnings ratio as SPOT.
SPOT is valuated expensively when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 46.55, the valuation of SPOT can be described as expensive.
Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than 68.35% of the companies in the same industry.
SPOT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.8 | ||
| Fwd PE | 46.55 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SPOT.
Based on the Price/Free Cash Flow ratio, SPOT is valued a bit cheaper than 65.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.69 | ||
| EV/EBITDA | 53.79 |
4.3 Compensation for Growth
The decent profitability rating of SPOT may justify a higher PE ratio.
A more expensive valuation may be justified as SPOT's earnings are expected to grow with 40.95% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46%
EPS Next 3Y40.95%
5. Dividend
5.1 Amount
No dividends for SPOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
629.6
-14.49 (-2.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners70.11%
Inst Owner Change-2.2%
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap128.89B
Revenue(TTM)16.61B
Net Income(TTM)806.00M
Analysts78.3
Price Target765.68 (21.61%)
Short Float %4.44%
Short Ratio4.85
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)1.35%
PT rev (3m)3.05%
EPS NQ rev (1m)2.02%
EPS NQ rev (3m)-3.91%
EPS NY rev (1m)-3.76%
EPS NY rev (3m)-34.81%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 141.8 | ||
| Fwd PE | 46.55 | ||
| P/S | 6.74 | ||
| P/FCF | 39.69 | ||
| P/OCF | 39.33 | ||
| P/B | 16.89 | ||
| P/tB | 20.29 | ||
| EV/EBITDA | 53.79 |
EPS(TTM)4.44
EY0.71%
EPS(NY)13.52
Fwd EY2.15%
FCF(TTM)15.86
FCFY2.52%
OCF(TTM)16.01
OCFY2.54%
SpS93.44
BVpS37.27
TBVpS31.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number61.02
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
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 Turnover1.23
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 | 11.7 |
F-Score6
WACC7.48%
ROIC/WACC2.93
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 Y-0.06%
EPS Next 2Y46%
EPS Next 3Y40.95%
EPS Next 5Y28.95%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
Revenue Next Year9.84%
Revenue Next 2Y12.77%
Revenue Next 3Y13.24%
Revenue Next 5Y12.06%
EBIT growth 1Y225.57%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year63.74%
EBIT Next 3Y43.76%
EBIT Next 5Y30.29%
FCF growth 1Y9971.43%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y6676.19%
OCF growth 3Y85.41%
OCF growth 5Y32.05%
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 of SPOTIFY TECHNOLOGY SA (SPOT) stock?
ChartMill assigns a valuation rating of 4 / 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 earnings growth outlook for SPOTIFY TECHNOLOGY SA?
The Earnings per Share (EPS) of SPOTIFY TECHNOLOGY SA (SPOT) is expected to decline by -0.06% in the next year.