SPOTIFY TECHNOLOGY SA (SPOT)
LU1778762911 - Common Stock
Overall SPOT gets a fundamental rating of 6 out of 10. We evaluated SPOT against 72 industry peers in the Entertainment industry. While SPOT has a great health rating, its profitability is only average at the moment. SPOT is growing strongly while it is still valued neutral. This is a good combination! With these ratings, SPOT could be worth investigating further for growth investing!.
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.
SPOT had negative earnings in each 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 6.64% is amongst the best of the industry. SPOT outperforms 83.10% of its industry peers.
SPOT's Return On Equity of 15.13% is amongst the best of the industry. SPOT outperforms 85.92% of its industry peers.
SPOT's Return On Invested Capital of 12.12% is amongst the best of the industry. SPOT outperforms 84.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 15.13% | ||
| ROIC | 12.12% |
ROA(3y)-4.16%
ROA(5y)-5.06%
ROE(3y)-13.53%
ROE(5y)-14.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.64%, SPOT is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
SPOT's Operating Margin of 6.55% is fine compared to the rest of the industry. SPOT outperforms 73.24% of its industry peers.
SPOT's Gross Margin of 28.68% is on the low side compared to the rest of the industry. SPOT is outperformed by 70.42% of its industry peers.
In the last couple of years the Gross Margin of SPOT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.55% | ||
| PM (TTM) | 4.64% | ||
| GM | 28.68% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.31%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SPOT is creating some value.
The number of shares outstanding for SPOT has been increased compared to 1 year ago.
The number of shares outstanding for SPOT has been increased compared to 5 years ago.
SPOT has a better debt/assets ratio than last year.
2.2 Solvency
SPOT has an Altman-Z score of 10.65. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.65, SPOT belongs to the best of the industry, outperforming 98.59% of the companies in the same industry.
The Debt to FCF ratio of SPOT is 0.99, which is an excellent value as it means it would take SPOT, only 0.99 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.99, SPOT belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
SPOT has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.39, SPOT is in line with its industry, outperforming 47.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 10.65 |
ROIC/WACC1.67
WACC7.26%
2.3 Liquidity
A Current Ratio of 1.71 indicates that SPOT should not have too much problems paying its short term obligations.
SPOT has a better Current ratio (1.71) than 67.61% of its industry peers.
A Quick Ratio of 1.71 indicates that SPOT should not have too much problems paying its short term obligations.
SPOT's Quick ratio of 1.71 is fine compared to the rest of the industry. SPOT outperforms 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 208.99% over the past year.
The Revenue has grown by 18.52% in the past year. This is quite good.
The Revenue has been growing by 20.29% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)208.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%339.39%
Revenue 1Y (TTM)18.52%
Revenue growth 3Y18.9%
Revenue growth 5Y20.29%
Sales Q2Q%18.8%
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 55.75% on average per year.
SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.03% yearly.
EPS Next Y399.63%
EPS Next 2Y157.54%
EPS Next 3Y98.12%
EPS Next 5Y55.75%
Revenue Next Year17.28%
Revenue Next 2Y16.04%
Revenue Next 3Y15.45%
Revenue Next 5Y14.03%
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 107.68.
Compared to the rest of the industry, the Price/Earnings ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 60.56% of the companies listed in the same industry.
SPOT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 47.64, which means the current valuation is very expensive for SPOT.
Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than 61.97% 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 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.68 | ||
| Fwd PE | 47.64 |
4.2 Price Multiples
SPOT's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SPOT is valued a bit cheaper than the industry average as 64.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.4 | ||
| EV/EBITDA | 74.86 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SPOT's earnings are expected to grow with 98.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y157.54%
EPS Next 3Y98.12%
5. Dividend
5.1 Amount
No dividends for SPOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPOTIFY TECHNOLOGY SA
NYSE:SPOT (12/20/2024, 8:04:00 PM)
Premarket: 461 +0.12 (+0.03%)460.88
+6.72 (+1.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners62.42%
Inst Owner Change4.29%
Ins Owners17.71%
Ins Owner ChangeN/A
Market Cap92.55B
Analysts79.07
Price Target482.41 (4.67%)
Short Float %5.42%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)3.05%
Min EPS beat(2)-17.36%
Max EPS beat(2)23.46%
EPS beat(4)3
Avg EPS beat(4)81.28%
Min EPS beat(4)-17.36%
Max EPS beat(4)273.18%
EPS beat(8)4
Avg EPS beat(8)48.88%
EPS beat(12)6
Avg EPS beat(12)48.44%
EPS beat(16)8
Avg EPS beat(16)32.92%
Revenue beat(2)0
Avg Revenue beat(2)-2.58%
Min Revenue beat(2)-2.8%
Max Revenue beat(2)-2.36%
Revenue beat(4)0
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-3.19%
Max Revenue beat(4)-1.2%
Revenue beat(8)0
Avg Revenue beat(8)-2.31%
Revenue beat(12)0
Avg Revenue beat(12)-1.74%
Revenue beat(16)1
Avg Revenue beat(16)-1.48%
PT rev (1m)0.84%
PT rev (3m)21.58%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)36.92%
EPS NY rev (1m)0.87%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 107.68 | ||
| Fwd PE | 47.64 | ||
| P/S | 5.9 | ||
| P/FCF | 49.4 | ||
| P/OCF | 49.08 | ||
| P/B | 19.23 | ||
| P/tB | 25.84 | ||
| EV/EBITDA | 74.86 |
EPS(TTM)4.28
EY0.93%
EPS(NY)9.67
Fwd EY2.1%
FCF(TTM)9.33
FCFY2.02%
OCF(TTM)9.39
OCFY2.04%
SpS78.14
BVpS23.97
TBVpS17.83
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.64% | ||
| ROE | 15.13% | ||
| ROCE | 15.34% | ||
| ROIC | 12.12% | ||
| ROICexc | 212.89% | ||
| ROICexgc | N/A | ||
| OM | 6.55% | ||
| PM (TTM) | 4.64% | ||
| GM | 28.68% | ||
| FCFM | 11.94% |
ROA(3y)-4.16%
ROA(5y)-5.06%
ROE(3y)-13.53%
ROE(5y)-14.09%
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 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.31%
GM growth 5Y0.06%
F-Score7
Asset Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 0.99 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 9.6% | ||
| Cap/Sales | 0.08% | ||
| Interest Coverage | 27.47 | ||
| Cash Conversion | 162.93% | ||
| Profit Quality | 257.2% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 10.65 |
F-Score7
WACC7.26%
ROIC/WACC1.67
Cap/Depr(3y)28.45%
Cap/Depr(5y)62.16%
Cap/Sales(3y)0.38%
Cap/Sales(5y)0.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)208.99%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%339.39%
EPS Next Y399.63%
EPS Next 2Y157.54%
EPS Next 3Y98.12%
EPS Next 5Y55.75%
Revenue 1Y (TTM)18.52%
Revenue growth 3Y18.9%
Revenue growth 5Y20.29%
Sales Q2Q%18.8%
Revenue Next Year17.28%
Revenue Next 2Y16.04%
Revenue Next 3Y15.45%
Revenue Next 5Y14.03%
EBIT growth 1Y321.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year442.05%
EBIT Next 3Y105.05%
EBIT Next 5Y59.65%
FCF growth 1Y806.03%
FCF growth 3Y55%
FCF growth 5Y25.21%
OCF growth 1Y672.34%
OCF growth 3Y37.95%
OCF growth 5Y14.6%