We assign a fundamental rating of 6 out of 10 to SPOT. SPOT was compared to 80 industry peers in the Entertainment industry. While SPOT has a great health rating, its profitability is only average at the moment. SPOT is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 the past 5 years SPOT reported 4 times negative net income.
In the past 5 years SPOT always reported a positive cash flow from operatings.

1.2 Ratios

With an excellent Return On Assets value of 9.56%, SPOT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
With an excellent Return On Equity value of 18.06%, SPOT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
SPOT has a better Return On Invested Capital (19.82%) than 96.25% 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

Looking at the Profit Margin, with a value of 8.32%, SPOT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
The Operating Margin of SPOT (11.68%) is better than 73.75% of its industry peers.
In the last couple of years the Operating Margin of SPOT has grown nicely.
SPOT's Gross Margin of 31.75% is on the low side compared to the rest of the industry. SPOT is outperformed by 65.00% of its industry peers.
SPOT's Gross Margin has improved in the last couple of years.

		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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

SPOT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SPOT has more shares outstanding than it did 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 9.88. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SPOT (9.88) is better than 95.00% of its industry peers.
The Debt to FCF ratio of SPOT is 0.75, which is an excellent value as it means it would take SPOT, only 0.75 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.75, SPOT belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that SPOT is not too dependend on debt financing.
SPOT has a better Debt to Equity ratio (0.06) than 65.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.06
Debt/FCF	0.75
Altman-Z	9.88

ROIC/WACC2.59

WACC7.64%

2.3 Liquidity

A Current Ratio of 1.61 indicates that SPOT should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.61, SPOT is doing good in the industry, outperforming 70.00% 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 71.25% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.61
Quick Ratio	1.61

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 38.11% over the past year.
SPOT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.89%.
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)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

The Earnings Per Share is expected to grow by 29.34% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.46% on average over the next years. This is quite good.

EPS Next Y34.11%

EPS Next 2Y50.58%

EPS Next 3Y42.21%

EPS Next 5Y29.34%

Revenue Next Year9.53%

Revenue Next 2Y11.7%

Revenue Next 3Y12.45%

Revenue Next 5Y12.46%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 76.74, SPOT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than the industry average as 66.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.25, SPOT is valued quite expensively.
SPOT is valuated quite expensively with a Price/Forward Earnings ratio of 34.94.
Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than 67.50% of the companies in the same industry.
SPOT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	76.74
Fwd PE	34.94

4.2 Price Multiples

SPOT's Enterprise Value to EBITDA ratio is in line with the industry average.
75.00% of the companies in the same industry are more expensive than SPOT, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	30.83
EV/EBITDA	38.21

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPOT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SPOT may justify a higher PE ratio.
SPOT's earnings are expected to grow with 42.21% in the coming years. This may justify a more expensive valuation.