SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
539.37 USD
-14.31 (-2.58%)
539.5 USD
+0.13 (+0.02%)
Overall SPOT gets a fundamental rating of 6 out of 10. We evaluated SPOT 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.
In the past 5 years SPOT reported 4 times negative net income.
Each year in the past 5 years SPOT had a positive operating cash flow.
1.2 Ratios
SPOT has a Return On Assets of 9.56%. This is amongst the best in the industry. SPOT outperforms 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 18.06%, SPOT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
SPOT has a Return On Invested Capital of 19.82%. This is amongst the best in the industry. SPOT outperforms 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
SPOT's Profit Margin of 8.32% is amongst the best of the industry. SPOT outperforms 81.25% of its industry peers.
The Operating Margin of SPOT (11.68%) is better than 73.75% of its industry peers.
SPOT's Operating Margin has improved in the last couple of years.
The Gross Margin of SPOT (31.75%) is worse than 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%
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.
SPOT has more shares outstanding than it did 5 years ago.
SPOT has a better debt/assets ratio than last year.
2.2 Solvency
SPOT has an Altman-Z score of 10.35. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.35, SPOT belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.75, SPOT belongs to the top 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 Debt to Equity ratio of 0.06. This is in the better half of the industry: SPOT outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.35 |
ROIC/WACC2.65
WACC7.49%
2.3 Liquidity
A Current Ratio of 1.61 indicates that SPOT should not have too much problems paying its short term obligations.
SPOT has a better Current ratio (1.61) than 70.00% of its industry peers.
SPOT has a Quick 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.
SPOT's Quick ratio of 1.61 is fine compared to the rest of the industry. SPOT outperforms 71.25% 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.
SPOT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.89%.
SPOT 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
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 Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.34%
Revenue Next Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
Revenue Next 5Y12.46%
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
A Price/Earnings ratio of 81.48 indicates a quite expensive valuation of SPOT.
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 27.19, SPOT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 36.91, the valuation of SPOT can be described as expensive.
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.
When comparing the Price/Forward Earnings ratio of SPOT to the average of the S&P500 Index (23.92), we can say SPOT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.48 | ||
| Fwd PE | 36.91 |
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 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.72 | ||
| EV/EBITDA | 40.8 |
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.
A more expensive valuation may be justified as SPOT's earnings are expected to grow with 42.55% in the coming years.
PEG (NY)2.41
PEG (5Y)N/A
EPS Next 2Y50.92%
EPS Next 3Y42.55%
5. Dividend
5.1 Amount
SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
539.37
-14.31 (-2.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners67.66%
Inst Owner Change0.07%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap111.05B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts80
Price Target771.57 (43.05%)
Short Float %4.8%
Short Ratio4.04
Dividend
| Industry Rank | Sector 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)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)-0.08%
PT rev (3m)0.3%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)10.98%
EPS NY rev (1m)0.59%
EPS NY rev (3m)28.78%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 81.48 | ||
| Fwd PE | 36.91 | ||
| P/S | 5.65 | ||
| P/FCF | 32.72 | ||
| P/OCF | 32.23 | ||
| P/B | 12.26 | ||
| P/tB | 14.31 | ||
| EV/EBITDA | 40.8 |
EPS(TTM)6.62
EY1.23%
EPS(NY)14.61
Fwd EY2.71%
FCF(TTM)16.48
FCFY3.06%
OCF(TTM)16.74
OCFY3.1%
SpS95.54
BVpS43.99
TBVpS37.7
PEG (NY)2.41
PEG (5Y)N/A
Graham Number80.94
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 | 10.35 |
F-Score6
WACC7.49%
ROIC/WACC2.65
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 Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.34%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
Revenue Next 5Y12.46%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year70.86%
EBIT Next 3Y44.8%
EBIT Next 5Y29.65%
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 for 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 financial health of SPOTIFY TECHNOLOGY SA (SPOT) stock?
The financial health rating of SPOTIFY TECHNOLOGY SA (SPOT) is 7 / 10.