SPOTIFY TECHNOLOGY SA (SPOT)

LU1778762911 - Common Stock

470.7  +0.69 (+0.15%)

After market: 471.99 +1.29 (+0.27%)

Fundamental Rating

6

Taking everything into account, SPOT scores 6 out of 10 in our fundamental rating. SPOT was compared to 72 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 is growing strongly while it is still valued neutral. This is a good combination! These ratings could make SPOT a good candidate for growth investing.



5

1. Profitability

1.1 Basic Checks

In the past year SPOT was profitable.
SPOT had a positive operating cash flow in the past year.
SPOT had negative earnings in each of the past 5 years.
Each year in the past 5 years SPOT had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 6.64%, SPOT belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.13%, SPOT belongs to the top of the industry, outperforming 87.14% of the companies in the same industry.
SPOT has a better Return On Invested Capital (12.12%) than 85.71% of its industry peers.
Industry RankSector 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

SPOT's Profit Margin of 4.64% is fine compared to the rest of the industry. SPOT outperforms 74.29% of its industry peers.
Looking at the Operating Margin, with a value of 6.55%, SPOT is in the better half of the industry, outperforming 72.86% of the companies in the same industry.
With a Gross Margin value of 28.68%, SPOT is not doing good in the industry: 67.14% of the companies in the same industry are doing better.
SPOT's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

7

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.
SPOT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SPOT has more shares outstanding
The debt/assets ratio for SPOT has been reduced compared to a year ago.

2.2 Solvency

SPOT has an Altman-Z score of 10.72. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
SPOT's Altman-Z score of 10.72 is amongst the best of the industry. SPOT outperforms 98.57% of its industry peers.
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 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that SPOT is not too dependend on debt financing.
SPOT has a Debt to Equity ratio (0.39) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 0.99
Altman-Z 10.72
ROIC/WACC1.69
WACC7.19%

2.3 Liquidity

A Current Ratio of 1.71 indicates that SPOT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.71, SPOT is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
A Quick Ratio of 1.71 indicates that SPOT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.71, SPOT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.71
Quick Ratio 1.71

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 210.23% over the past year.
The Revenue has grown by 18.52% in the past year. This is quite good.
SPOT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.29% yearly.
EPS 1Y (TTM)210.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%353.58%
Revenue 1Y (TTM)18.52%
Revenue growth 3Y18.9%
Revenue growth 5Y20.29%
Sales Q2Q%22.91%

3.2 Future

The Earnings Per Share is expected to grow by 50.30% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.43% on average over the next years. This is quite good.
EPS Next Y397.04%
EPS Next 2Y149.44%
EPS Next 3Y93.79%
EPS Next 5Y50.3%
Revenue Next Year18.49%
Revenue Next 2Y16.67%
Revenue Next 3Y15.58%
Revenue Next 5Y14.43%

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

4. Valuation

4.1 Price/Earnings Ratio

SPOT is valuated quite expensively with a Price/Earnings ratio of 107.22.
SPOT's Price/Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 61.43% 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 28.96.
Based on the Price/Forward Earnings ratio of 52.69, the valuation of SPOT can be described as expensive.
SPOT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 61.43% of the companies in the same industry.
SPOT is valuated expensively when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 107.22
Fwd PE 52.69

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SPOT.
65.71% of the companies in the same industry are more expensive than SPOT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 49.8
EV/EBITDA 75.5

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.
SPOT's earnings are expected to grow with 93.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y149.44%
EPS Next 3Y93.79%

0

5. Dividend

5.1 Amount

No dividends for SPOT!.
Industry RankSector Rank
Dividend Yield N/A

SPOTIFY TECHNOLOGY SA

NYSE:SPOT (11/21/2024, 8:04:00 PM)

After market: 471.99 +1.29 (+0.27%)

470.7

+0.69 (+0.15%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap94.52B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 107.22
Fwd PE 52.69
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.27
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.64%
ROE 15.13%
ROCE
ROIC
ROICexc
ROICexgc
OM 6.55%
PM (TTM) 4.64%
GM 28.68%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.43
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.71
Quick Ratio 1.71
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)210.23%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y397.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.52%
Revenue growth 3Y18.9%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y