SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
553.68 USD
-15.94 (-2.8%)
554.5 USD
+0.82 (+0.15%)
SPOT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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
SPOT had positive earnings in the past year.
SPOT had a positive operating cash flow in the past year.
SPOT had negative earnings in 4 of the past 5 years.
Each year in the past 5 years SPOT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SPOT (9.56%) is better than 87.50% of its industry peers.
With an excellent Return On Equity value of 18.06%, SPOT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
SPOT has a better Return On Invested Capital (19.82%) than 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 has a Profit Margin of 8.32%. This is amongst the best in the industry. SPOT outperforms 81.25% of its industry peers.
Looking at the Operating Margin, with a value of 11.68%, SPOT is in the better half of the industry, outperforming 73.75% of the companies in the same industry.
In the last couple of years the Operating Margin of SPOT has grown nicely.
SPOT has a worse Gross Margin (31.75%) 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
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.
Compared to 5 years ago, SPOT has more shares outstanding
SPOT has a better debt/assets ratio than last year.
2.2 Solvency
SPOT has an Altman-Z score of 10.78. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.78, SPOT belongs to the top of the industry, outperforming 96.25% 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.
SPOT's Debt to FCF ratio of 0.75 is amongst the best of the industry. SPOT outperforms 86.25% of its industry peers.
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 | 10.78 |
ROIC/WACC2.65
WACC7.49%
2.3 Liquidity
SPOT has a Current 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 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.
With a decent Quick ratio value of 1.61, SPOT is doing good in the industry, outperforming 71.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.11%, which is quite impressive.
Looking at the last year, SPOT shows a quite strong growth in Revenue. The Revenue has grown by 11.89% in the last year.
Measured over the past years, SPOT shows a quite strong growth in Revenue. The Revenue has been growing by 18.30% on average per year.
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
SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.72% yearly.
Based on estimates for the next years, SPOT will show a quite strong growth in Revenue. The Revenue will grow by 11.87% on average per year.
EPS Next Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.72%
Revenue Next Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
Revenue Next 5Y11.87%
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 83.26 indicates a quite expensive valuation of SPOT.
Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than 66.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of SPOT to the average of the S&P500 Index (27.00), we can say SPOT is valued expensively.
Based on the Price/Forward Earnings ratio of 37.76, the valuation of SPOT can be described as expensive.
67.50% of the companies in the same industry are more expensive than SPOT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, SPOT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.26 | ||
| Fwd PE | 37.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPOT is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SPOT is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.47 | ||
| EV/EBITDA | 43.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)2.47
PEG (5Y)N/A
EPS Next 2Y50.92%
EPS Next 3Y42.55%
5. Dividend
5.1 Amount
No dividends for SPOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
553.68
-15.94 (-2.8%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners67.66%
Inst Owner Change0%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap114.00B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target771.57 (39.35%)
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 | 83.26 | ||
| Fwd PE | 37.76 | ||
| P/S | 5.77 | ||
| P/FCF | 33.47 | ||
| P/OCF | 32.96 | ||
| P/B | 12.54 | ||
| P/tB | 14.63 | ||
| EV/EBITDA | 43.2 |
EPS(TTM)6.65
EY1.2%
EPS(NY)14.66
Fwd EY2.65%
FCF(TTM)16.54
FCFY2.99%
OCF(TTM)16.8
OCFY3.03%
SpS95.89
BVpS44.14
TBVpS37.84
PEG (NY)2.47
PEG (5Y)N/A
Graham Number81.27
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 | 10.78 |
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 5Y29.72%
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 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year70.86%
EBIT Next 3Y44.8%
EBIT Next 5Y29.59%
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.