SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
572.35 USD
+7.42 (+1.31%)
571.92 USD
-0.43 (-0.08%)
SPOT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 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.
Each year in the past 5 years SPOT had a positive operating cash flow.
1.2 Ratios
SPOT's Return On Assets of 9.56% is amongst the best of the industry. SPOT outperforms 86.25% of its industry peers.
SPOT's Return On Equity of 18.06% is amongst the best of the industry. SPOT outperforms 86.25% of its industry peers.
SPOT has a Return On Invested Capital of 19.82%. This is amongst the best in the industry. SPOT outperforms 95.00% of its industry peers.
| 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
The Profit Margin of SPOT (8.32%) is better than 80.00% of its industry peers.
With a decent Operating Margin value of 11.68%, SPOT is doing good in the industry, outperforming 73.75% of the companies in the same industry.
In the last couple of years the Operating Margin of SPOT has grown nicely.
Looking at the Gross Margin, with a value of 31.75%, SPOT is doing worse than 63.75% of the companies in the same industry.
In the last couple of years the Gross Margin of SPOT 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
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.
SPOT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SPOT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.74 indicates that SPOT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.74, SPOT belongs to the best of the industry, outperforming 92.50% of the companies in the same industry.
SPOT has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
SPOT's Debt to FCF ratio of 0.75 is amongst the best of the industry. SPOT outperforms 85.00% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that SPOT is not too dependend on debt financing.
The Debt to Equity ratio of SPOT (0.06) is better than 63.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.74 |
ROIC/WACC2.66
WACC7.44%
2.3 Liquidity
SPOT has a Current Ratio of 1.61. This is a normal value and indicates that SPOT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.61, SPOT is doing good in the industry, outperforming 71.25% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that SPOT should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.61, SPOT is doing good in the industry, outperforming 73.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.11%, which is quite impressive.
Looking at the last year, SPOT shows a quite strong growth in Revenue. The Revenue has grown by 11.89% in the last year.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
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
SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.72% yearly.
SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.87% yearly.
EPS Next Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
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
SPOT is valuated quite expensively with a Price/Earnings ratio of 86.33.
Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than 65.00% of the companies in the same industry.
SPOT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 39.29, SPOT can be considered very expensive at the moment.
SPOT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, SPOT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.33 | ||
| Fwd PE | 39.29 |
4.2 Price Multiples
SPOT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 71.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.72 | ||
| EV/EBITDA | 42.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 42.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.62
PEG (5Y)N/A
EPS Next 2Y50.68%
EPS Next 3Y42.3%
5. Dividend
5.1 Amount
No dividends for SPOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
572.35
+7.42 (+1.31%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners67.74%
Inst Owner Change-1.95%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap117.84B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target772.2 (34.92%)
Short Float %4.67%
Short Ratio4.24
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)0.85%
PT rev (3m)2.53%
EPS NQ rev (1m)8.97%
EPS NQ rev (3m)11.2%
EPS NY rev (1m)35.44%
EPS NY rev (3m)26.56%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.33 | ||
| Fwd PE | 39.29 | ||
| P/S | 5.99 | ||
| P/FCF | 34.72 | ||
| P/OCF | 34.19 | ||
| P/B | 13.01 | ||
| P/tB | 15.18 | ||
| EV/EBITDA | 42.96 |
EPS(TTM)6.63
EY1.16%
EPS(NY)14.57
Fwd EY2.55%
FCF(TTM)16.49
FCFY2.88%
OCF(TTM)16.74
OCFY2.93%
SpS95.57
BVpS44
TBVpS37.71
PEG (NY)2.62
PEG (5Y)N/A
Graham Number81.01
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 | 10.74 |
F-Score6
WACC7.44%
ROIC/WACC2.66
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 Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
Revenue Next 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year69.42%
EBIT Next 3Y44.52%
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 / 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 grow by 32.96% in the next year.