SPOTIFY TECHNOLOGY SA (SPOT) Fundamental Analysis & Valuation

NYSE:SPOT • LU1778762911

Current stock price

536.61 USD
+5.16 (+0.97%)
At close:
536.99 USD
+0.38 (+0.07%)
Pre-Market:

This SPOT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SPOT Profitability Analysis

1.1 Basic Checks

  • In the past year SPOT was profitable.
  • SPOT had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: SPOT reported negative net income in multiple years.
  • SPOT had a positive operating cash flow in each of the past 5 years.
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's Return On Assets of 14.73% is amongst the best of the industry. SPOT outperforms 93.67% of its industry peers.
  • SPOT has a better Return On Equity (26.56%) than 92.41% of its industry peers.
  • The Return On Invested Capital of SPOT (19.44%) is better than 96.20% of its industry peers.
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

  • Looking at the Profit Margin, with a value of 12.87%, SPOT belongs to the top of the industry, outperforming 91.14% of the companies in the same industry.
  • With a decent Operating Margin value of 12.79%, SPOT is doing good in the industry, outperforming 77.22% of the companies in the same industry.
  • The Gross Margin of SPOT (31.98%) is worse than 63.29% of its industry peers.
  • In the last couple of years the Gross Margin of SPOT has grown nicely.
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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7

2. SPOT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SPOT is creating 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.
  • Compared to 1 year ago, SPOT has an improved debt to assets ratio.
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

  • An Altman-Z score of 10.31 indicates that SPOT is not in any danger for bankruptcy at the moment.
  • SPOT has a Altman-Z score of 10.31. This is amongst the best in the industry. SPOT outperforms 97.47% 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.
  • With an excellent Debt to FCF ratio value of 0.68, SPOT belongs to the best of the industry, outperforming 87.34% of the companies in the same industry.
  • A Debt/Equity ratio of 0.05 indicates that SPOT is not too dependend on debt financing.
  • With a decent Debt to Equity ratio value of 0.05, SPOT is doing good in the industry, outperforming 67.09% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.68
Altman-Z 10.31
ROIC/WACC2.61
WACC7.46%
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

  • SPOT has a Current 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.
  • The Current ratio of SPOT (1.72) is better than 72.15% of its industry peers.
  • A Quick Ratio of 1.72 indicates that SPOT should not have too much problems paying its short term obligations.
  • The Quick ratio of SPOT (1.72) is better than 74.68% of its industry peers.
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. SPOT Growth Analysis

3.1 Past

  • SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.72%, which is quite impressive.
  • 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 22.44% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 12.44% on average over the next years. This is quite good.
EPS Next Y58.87%
EPS Next 2Y40.88%
EPS Next 3Y33.02%
EPS Next 5Y22.44%
Revenue Next Year13.53%
Revenue Next 2Y13.45%
Revenue Next 3Y13.06%
Revenue Next 5Y12.44%

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

5

4. SPOT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 54.42, SPOT can be considered very expensive at the moment.
  • SPOT's Price/Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 67.09% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.89. SPOT is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 34.25, SPOT can be considered very expensive at the moment.
  • 72.15% of the companies in the same industry are more expensive than SPOT, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of SPOT to the average of the S&P500 Index (38.50), we can say SPOT is valued inline with the index average.
Industry RankSector Rank
PE 54.42
Fwd PE 34.25
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SPOT is valued a bit cheaper than the industry average as 60.76% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, SPOT is valued a bit cheaper than 74.68% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.61
EV/EBITDA 35.62
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of SPOT may justify a higher PE ratio.
  • SPOT's earnings are expected to grow with 33.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y40.88%
EPS Next 3Y33.02%

More info and screens

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

0

5. SPOT Dividend Analysis

5.1 Amount

  • No dividends for SPOT!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SPOT Fundamentals: All Metrics, Ratios and Statistics

SPOTIFY TECHNOLOGY SA

NYSE:SPOT (4/17/2026, 8:04:00 PM)

Premarket: 536.99 +0.38 (+0.07%)

536.61

+5.16 (+0.97%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-10
Earnings (Next)04-28
Inst Owners68.84%
Inst Owner Change-0.12%
Ins Owners15.32%
Ins Owner Change-0.61%
Market Cap110.48B
Revenue(TTM)17.19B
Net Income(TTM)2.21B
Analysts82.13
Price Target657.24 (22.48%)
Short Float %4.14%
Short Ratio2.32
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)-1.95%
PT rev (3m)-14.37%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)11.53%
EPS NY rev (1m)0.14%
EPS NY rev (3m)5.82%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 54.42
Fwd PE 34.25
P/S 5.45
P/FCF 32.61
P/OCF 31.93
P/B 11.24
P/tB 13
EV/EBITDA 35.62
EPS(TTM)9.86
EY1.84%
EPS(NY)15.67
Fwd EY2.92%
FCF(TTM)16.46
FCFY3.07%
OCF(TTM)16.81
OCFY3.13%
SpS98.48
BVpS47.73
TBVpS41.28
PEG (NY)0.92
PEG (5Y)N/A
Graham Number102.898 (-80.82%)
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 10.31
F-Score7
WACC7.46%
ROIC/WACC2.61
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 Y58.87%
EPS Next 2Y40.88%
EPS Next 3Y33.02%
EPS Next 5Y22.44%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.59%
Revenue growth 5Y16.88%
Sales Q2Q%6.81%
Revenue Next Year13.53%
Revenue Next 2Y13.45%
Revenue Next 3Y13.06%
Revenue Next 5Y12.44%
EBIT growth 1Y61.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year50.3%
EBIT Next 3Y32.38%
EBIT Next 5Y22.08%
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 Fundamental Analysis FAQ

What is the fundamental rating for SPOT stock?

ChartMill assigns a fundamental rating of 6 / 10 to SPOT.


Can you provide the valuation status for SPOTIFY TECHNOLOGY SA?

ChartMill assigns a valuation rating of 5 / 10 to SPOTIFY TECHNOLOGY SA (SPOT). This can be considered as Fairly Valued.


What is the profitability of SPOT stock?

SPOTIFY TECHNOLOGY SA (SPOT) has a profitability rating of 6 / 10.


How financially healthy is SPOTIFY TECHNOLOGY SA?

The financial health rating of SPOTIFY TECHNOLOGY SA (SPOT) is 7 / 10.


What is the earnings growth outlook for SPOTIFY TECHNOLOGY SA?

The Earnings per Share (EPS) of SPOTIFY TECHNOLOGY SA (SPOT) is expected to grow by 58.87% in the next year.