SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis

NYSE:SPOT • LU1778762911

514.94 USD
+19.29 (+3.89%)
At close: Feb 27, 2026
513.48 USD
-1.46 (-0.28%)
After Hours: 2/27/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • SPOT had positive earnings in the past year.
  • SPOT had a positive operating cash flow in the past year.
  • In multiple years SPOT reported negative net income over the last 5 years.
  • In the past 5 years SPOT always reported a positive cash flow from operatings.
SPOT Yearly Net Income VS EBIT VS OCF VS FCFSPOT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

1.2 Ratios

  • SPOT has a better Return On Assets (14.73%) than 92.50% of its industry peers.
  • The Return On Equity of SPOT (26.56%) is better than 91.25% of its industry peers.
  • With an excellent Return On Invested Capital value of 19.44%, SPOT belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
Industry RankSector Rank
ROA 14.73%
ROE 26.56%
ROIC 19.44%
ROA(3y)5.95%
ROA(5y)2.35%
ROE(3y)8.69%
ROE(5y)1.31%
ROIC(3y)N/A
ROIC(5y)N/A
SPOT Yearly ROA, ROE, ROICSPOT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 -200 -400

1.3 Margins

  • With an excellent Profit Margin value of 12.87%, SPOT belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
  • SPOT has a Operating Margin of 12.79%. This is amongst the best in the industry. SPOT outperforms 81.25% of its industry peers.
  • SPOT's Gross Margin of 31.98% is on the low side compared to the rest of the industry. SPOT is outperformed by 62.50% of its industry peers.
  • SPOT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.79%
PM (TTM) 12.87%
GM 31.98%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.62%
GM growth 5Y4.57%
SPOT Yearly Profit, Operating, Gross MarginsSPOT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • Compared to 1 year ago, SPOT has more shares outstanding
  • SPOT has more shares outstanding than it did 5 years ago.
  • SPOT has a better debt/assets ratio than last year.
SPOT Yearly Shares OutstandingSPOT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
SPOT Yearly Total Debt VS Total AssetsSPOT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • SPOT has an Altman-Z score of 9.96. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
  • SPOT has a Altman-Z score of 9.96. This is amongst the best in the industry. SPOT outperforms 97.50% of its industry peers.
  • SPOT has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
  • The Debt to FCF ratio of SPOT (0.68) is better than 88.75% of its industry peers.
  • SPOT has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
  • SPOT's Debt to Equity ratio of 0.05 is fine compared to the rest of the industry. SPOT outperforms 65.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.68
Altman-Z 9.96
ROIC/WACC2.57
WACC7.58%
SPOT Yearly LT Debt VS Equity VS FCFSPOT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.72 indicates that SPOT should not have too much problems paying its short term obligations.
  • The Current ratio of SPOT (1.72) is better than 71.25% of its industry peers.
  • SPOT has a Quick Ratio of 1.72. 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 Quick ratio value of 1.72, SPOT is doing good in the industry, outperforming 72.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.72
Quick Ratio 1.72
SPOT Yearly Current Assets VS Current LiabilitesSPOT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 51.72% over the past year.
  • Looking at the last year, SPOT shows a quite strong growth in Revenue. The Revenue has grown by 9.65% in the last year.
  • The Revenue has been growing by 16.88% on average over the past years. This is quite good.
EPS 1Y (TTM)51.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%151.7%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.59%
Revenue growth 5Y16.88%
Sales Q2Q%6.81%

3.2 Future

  • The Earnings Per Share is expected to grow by 22.05% on average over the next years. This is a very strong growth
  • SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.38% yearly.
EPS Next Y48.12%
EPS Next 2Y37.05%
EPS Next 3Y29.89%
EPS Next 5Y22.05%
Revenue Next Year13.74%
Revenue Next 2Y13.77%
Revenue Next 3Y13.34%
Revenue Next 5Y12.38%

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.
SPOT Yearly Revenue VS EstimatesSPOT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
SPOT Yearly EPS VS EstimatesSPOT Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 10 20 30

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 52.17 indicates a quite expensive valuation of SPOT.
  • Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than 73.75% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.07, SPOT is valued quite expensively.
  • The Price/Forward Earnings ratio is 35.23, which means the current valuation is very expensive for SPOT.
  • Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
  • SPOT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 28.05, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 52.17
Fwd PE 35.23
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • SPOT's Enterprise Value to EBITDA is on the same level as the industry average.
  • SPOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 73.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 31.27
EV/EBITDA 33.95
SPOT Per share dataSPOT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • SPOT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • SPOT has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as SPOT's earnings are expected to grow with 29.89% in the coming years.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y37.05%
EPS Next 3Y29.89%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • SPOT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

SPOTIFY TECHNOLOGY SA

NYSE:SPOT (2/27/2026, 8:04:00 PM)

After market: 513.48 -1.46 (-0.28%)

514.94

+19.29 (+3.89%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-10
Earnings (Next)04-21
Inst Owners67.66%
Inst Owner Change1.65%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap106.02B
Revenue(TTM)17.19B
Net Income(TTM)2.21B
Analysts80.85
Price Target670.3 (30.17%)
Short Float %3.71%
Short Ratio2.03
Dividend
Industry RankSector 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)2
Avg EPS beat(2)60.73%
Min EPS beat(2)58.63%
Max EPS beat(2)62.82%
EPS beat(4)2
Avg EPS beat(4)-13.13%
Min EPS beat(4)-121.7%
Max EPS beat(4)62.82%
EPS beat(8)4
Avg EPS beat(8)-1.71%
EPS beat(12)6
Avg EPS beat(12)27.76%
EPS beat(16)7
Avg EPS beat(16)29%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-1.97%
Revenue beat(12)0
Avg Revenue beat(12)-2.18%
Revenue beat(16)0
Avg Revenue beat(16)-1.86%
PT rev (1m)-12.67%
PT rev (3m)-13.2%
EPS NQ rev (1m)9.75%
EPS NQ rev (3m)10.13%
EPS NY rev (1m)-0.89%
EPS NY rev (3m)5.51%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-2.04%
Valuation
Industry RankSector Rank
PE 52.17
Fwd PE 35.23
P/S 5.23
P/FCF 31.27
P/OCF 30.62
P/B 10.78
P/tB 12.46
EV/EBITDA 33.95
EPS(TTM)9.87
EY1.92%
EPS(NY)14.62
Fwd EY2.84%
FCF(TTM)16.47
FCFY3.2%
OCF(TTM)16.82
OCFY3.27%
SpS98.54
BVpS47.76
TBVpS41.31
PEG (NY)1.08
PEG (5Y)N/A
Graham Number102.98
Profitability
Industry RankSector Rank
ROA 14.73%
ROE 26.56%
ROCE 24.61%
ROIC 19.44%
ROICexc N/A
ROICexgc N/A
OM 12.79%
PM (TTM) 12.87%
GM 31.98%
FCFM 16.71%
ROA(3y)5.95%
ROA(5y)2.35%
ROE(3y)8.69%
ROE(5y)1.31%
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 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.62%
GM growth 5Y4.57%
F-Score7
Asset Turnover1.14
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.68
Debt/EBITDA 0.19
Cap/Depr 59.8%
Cap/Sales 0.35%
Interest Coverage 61.06
Cash Conversion 127.52%
Profit Quality 129.84%
Current Ratio 1.72
Quick Ratio 1.72
Altman-Z 9.96
F-Score7
WACC7.58%
ROIC/WACC2.57
Cap/Depr(3y)25.88%
Cap/Depr(5y)31.84%
Cap/Sales(3y)0.17%
Cap/Sales(5y)0.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%151.7%
EPS Next Y48.12%
EPS Next 2Y37.05%
EPS Next 3Y29.89%
EPS Next 5Y22.05%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.59%
Revenue growth 5Y16.88%
Sales Q2Q%6.81%
Revenue Next Year13.74%
Revenue Next 2Y13.77%
Revenue Next 3Y13.34%
Revenue Next 5Y12.38%
EBIT growth 1Y61.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year50.34%
EBIT Next 3Y32.5%
EBIT Next 5Y20.9%
FCF growth 1Y25.74%
FCF growth 3Y415.22%
FCF growth 5Y73.82%
OCF growth 1Y27.47%
OCF growth 3Y299.5%
OCF growth 5Y62.48%

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.