SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
577.15 USD
-20.65 (-3.45%)
575 USD
-2.15 (-0.37%)
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 has a decent growth rate and is not valued too expensively.
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.
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
SPOT has a Return On Assets of 9.56%. This is amongst the best in the industry. SPOT outperforms 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 18.06%, SPOT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.82%, SPOT belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
| 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
With an excellent Profit Margin value of 8.32%, SPOT belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
The Operating Margin of SPOT (11.68%) is better than 73.75% of its industry peers.
SPOT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.75%, SPOT is doing worse than 63.75% of the companies in the same industry.
In the last couple of years the Gross Margin of SPOT has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
SPOT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.84 indicates that SPOT is not in any danger for bankruptcy at the moment.
The Altman-Z score of SPOT (10.84) is better than 93.75% of its industry peers.
SPOT has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
SPOT has a better Debt to FCF ratio (0.75) than 86.25% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that SPOT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.06, SPOT is doing good in the industry, outperforming 63.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.84 |
ROIC/WACC2.66
WACC7.44%
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.
The Current ratio of SPOT (1.61) is better than 68.75% 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.
Looking at the Quick ratio, with a value of 1.61, SPOT is in the better half of 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.
SPOT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.89%.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 29.72% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.87% on average over the next years. This is quite good.
EPS Next Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
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 86.27 indicates a quite expensive valuation of SPOT.
Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than 65.00% of the companies in the same industry.
SPOT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.55.
Based on the Price/Forward Earnings ratio of 39.26, the valuation of SPOT can be described as expensive.
Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than 68.75% 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 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.27 | ||
| Fwd PE | 39.26 |
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 72.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.68 | ||
| EV/EBITDA | 43.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 42.30% in the coming years.
PEG (NY)2.62
PEG (5Y)N/A
EPS Next 2Y50.68%
EPS Next 3Y42.3%
5. Dividend
5.1 Amount
SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
577.15
-20.65 (-3.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners67.74%
Inst Owner Change-1.97%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap118.83B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target772.2 (33.8%)
Short Float %4.74%
Short Ratio4
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)0.85%
PT rev (3m)2.22%
EPS NQ rev (1m)8.97%
EPS NQ rev (3m)10.72%
EPS NY rev (1m)35.44%
EPS NY rev (3m)26.56%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.27 | ||
| Fwd PE | 39.26 | ||
| P/S | 5.98 | ||
| P/FCF | 34.68 | ||
| P/OCF | 34.16 | ||
| P/B | 13 | ||
| P/tB | 15.16 | ||
| EV/EBITDA | 43.55 |
EPS(TTM)6.69
EY1.16%
EPS(NY)14.7
Fwd EY2.55%
FCF(TTM)16.64
FCFY2.88%
OCF(TTM)16.9
OCFY2.93%
SpS96.45
BVpS44.41
TBVpS38.06
PEG (NY)2.62
PEG (5Y)N/A
Graham Number81.76
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 | 10.84 |
F-Score6
WACC7.44%
ROIC/WACC2.66
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 Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
Revenue Next 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year69.42%
EBIT Next 3Y44.52%
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 of SPOTIFY TECHNOLOGY SA (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 earnings growth outlook for SPOTIFY TECHNOLOGY SA?
The Earnings per Share (EPS) of SPOTIFY TECHNOLOGY SA (SPOT) is expected to grow by 32.96% in the next year.