SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - NYSE:SPOT - LU1778762911 - Common Stock
734.92 USD
+0.8 (+0.11%)
734.92 USD
0 (0%)
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. 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.
1. Profitability
1.1 Basic Checks
In the past year SPOT was profitable.
In the past year SPOT had a positive cash flow from operations.
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
The Return On Assets of SPOT (5.99%) is better than 85.00% of its industry peers.
SPOT has a Return On Equity of 12.16%. This is amongst the best in the industry. SPOT outperforms 82.50% of its industry peers.
SPOT has a Return On Invested Capital of 21.90%. This is amongst the best in the industry. SPOT outperforms 97.50% 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
The Profit Margin of SPOT (4.85%) is better than 73.75% of its industry peers.
SPOT has a Operating Margin of 11.11%. This is in the better half of the industry: SPOT outperforms 73.75% of its industry peers.
SPOT's Operating Margin has improved in the last couple of years.
SPOT's Gross Margin of 31.63% is on the low side compared to the rest of the industry. SPOT is outperformed by 66.25% of its industry peers.
SPOT's Gross Margin has improved in the last couple of years.
| 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
SPOT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 12.81 indicates that SPOT is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPOT (12.81) is better than 95.00% of its industry peers.
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 85.00% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that SPOT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.07, SPOT is doing good in the industry, outperforming 63.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 12.81 |
ROIC/WACC2.94
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.47 indicates that SPOT should not have too much problems paying its short term obligations.
SPOT's Current ratio of 1.47 is fine compared to the rest of the industry. SPOT outperforms 61.25% of its industry peers.
A Quick Ratio of 1.47 indicates that SPOT should not have too much problems paying its short term obligations.
SPOT's Quick ratio of 1.47 is fine compared to the rest of the industry. SPOT outperforms 63.75% 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.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 28.35% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.53% on average over the next years. This is quite good.
EPS Next Y5.06%
EPS Next 2Y46.49%
EPS Next 3Y42.88%
EPS Next 5Y28.35%
Revenue Next Year10.32%
Revenue Next 2Y12.96%
Revenue Next 3Y13.38%
Revenue Next 5Y11.53%
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 161.17, which means the current valuation is very expensive for SPOT.
Compared to the rest of the industry, the Price/Earnings ratio of SPOT is on the same level as its industry peers.
SPOT is valuated expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 52.60, the valuation of SPOT can be described as expensive.
Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SPOT to the average of the S&P500 Index (22.86), we can say SPOT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.17 | ||
| Fwd PE | 52.6 |
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 the industry average as 66.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.14 | ||
| EV/EBITDA | 60.24 |
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 42.88% in the coming years.
PEG (NY)31.88
PEG (5Y)N/A
EPS Next 2Y46.49%
EPS Next 3Y42.88%
5. Dividend
5.1 Amount
No dividends for SPOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
734.92
+0.8 (+0.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners69.85%
Inst Owner Change0.28%
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap150.45B
Analysts77.83
Price Target755.45 (2.79%)
Short Float %4.45%
Short Ratio3.58
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)0.54%
PT rev (3m)13.43%
EPS NQ rev (1m)-3.71%
EPS NQ rev (3m)-20.39%
EPS NY rev (1m)-31.48%
EPS NY rev (3m)-34.07%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)-6.22%
Revenue NY rev (1m)-3.02%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.17 | ||
| Fwd PE | 52.6 | ||
| P/S | 7.66 | ||
| P/FCF | 45.14 | ||
| P/OCF | 44.73 | ||
| P/B | 19.21 | ||
| P/tB | 23.08 | ||
| EV/EBITDA | 60.24 |
EPS(TTM)4.56
EY0.62%
EPS(NY)13.97
Fwd EY1.9%
FCF(TTM)16.28
FCFY2.22%
OCF(TTM)16.43
OCFY2.24%
SpS95.91
BVpS38.26
TBVpS31.84
PEG (NY)31.88
PEG (5Y)N/A
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
ROICexcg growth 3YN/A
ROICexcg 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 | 12.81 |
F-Score6
WACC7.44%
ROIC/WACC2.94
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 Y5.06%
EPS Next 2Y46.49%
EPS Next 3Y42.88%
EPS Next 5Y28.35%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
Revenue Next Year10.32%
Revenue Next 2Y12.96%
Revenue Next 3Y13.38%
Revenue Next 5Y11.53%
EBIT growth 1Y225.57%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year67.77%
EBIT Next 3Y44.4%
EBIT Next 5Y29.68%
FCF growth 1Y9971.43%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y6676.19%
OCF growth 3Y85.41%
OCF growth 5Y32.05%