SPOTIFY TECHNOLOGY SA (SPOT) Fundamental Analysis & Valuation

NYSE:SPOT • LU1778762911

Current stock price

474.54 USD
-7.98 (-1.65%)
At close:
478.25 USD
+3.71 (+0.78%)
After Hours:

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

  • SPOT had positive earnings in the past year.
  • In the past year SPOT had a positive cash flow from operations.
  • 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 Return On Assets of 14.73%. This is amongst the best in the industry. SPOT outperforms 92.41% of its industry peers.
  • The Return On Equity of SPOT (26.56%) is better than 91.14% of its industry peers.
  • The Return On Invested Capital of SPOT (19.44%) is better than 97.47% 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

  • SPOT has a better Profit Margin (12.87%) than 89.87% of its industry peers.
  • The Operating Margin of SPOT (12.79%) is better than 77.22% of its industry peers.
  • With a Gross Margin value of 31.98%, SPOT is not doing good in the industry: 62.03% of the companies in the same industry are doing better.
  • 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. 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.
  • SPOT has more shares outstanding than it did 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 9.66 indicates that SPOT is not in any danger for bankruptcy at the moment.
  • SPOT's Altman-Z score of 9.66 is amongst the best of 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.
  • SPOT has a Debt to FCF ratio of 0.68. This is amongst the best in the industry. SPOT outperforms 88.61% 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 has a better Debt to Equity ratio (0.05) than 64.56% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.68
Altman-Z 9.66
ROIC/WACC2.57
WACC7.57%
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.
  • SPOT has a better Current ratio (1.72) than 70.89% 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.
  • SPOT's Quick ratio of 1.72 is fine compared to the rest of the industry. SPOT outperforms 72.15% 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

  • The Earnings Per Share has grown by an impressive 51.72% over the past year.
  • The Revenue has grown by 9.65% in the past year. This is quite good.
  • Measured over the past years, SPOT shows a quite strong growth in Revenue. The Revenue has been growing by 16.88% on average per year.
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

  • SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.44% yearly.
  • The Revenue is expected to grow by 12.44% on average over the next years. This is quite good.
EPS Next Y58.65%
EPS Next 2Y40.81%
EPS Next 3Y32.92%
EPS Next 5Y22.44%
Revenue Next Year13.44%
Revenue Next 2Y13.62%
Revenue Next 3Y13.29%
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

  • A Price/Earnings ratio of 49.43 indicates a quite expensive valuation of SPOT.
  • 69.62% of the companies in the same industry are more expensive than SPOT, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, SPOT is valued quite expensively.
  • A Price/Forward Earnings ratio of 31.14 indicates a quite expensive valuation of SPOT.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 72.15% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, SPOT is valued a bit more expensive.
Industry RankSector Rank
PE 49.43
Fwd PE 31.14
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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.
  • SPOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 75.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.6
EV/EBITDA 32.49
SPOT Per share dataSPOT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • SPOT has a very decent profitability rating, which may justify a higher PE ratio.
  • SPOT's earnings are expected to grow with 32.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y40.81%
EPS Next 3Y32.92%

More info and screens

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

0

5. SPOT Dividend Analysis

5.1 Amount

  • SPOT does not give a dividend.
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 (3/20/2026, 8:23:30 PM)

After market: 478.25 +3.71 (+0.78%)

474.54

-7.98 (-1.65%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-10
Earnings (Next)04-21
Inst Owners68.17%
Inst Owner Change1.66%
Ins Owners15.33%
Ins Owner ChangeN/A
Market Cap97.70B
Revenue(TTM)17.19B
Net Income(TTM)2.21B
Analysts82.17
Price Target670.3 (41.25%)
Short Float %4.05%
Short Ratio2
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)-9.27%
PT rev (3m)-13.2%
EPS NQ rev (1m)10.22%
EPS NQ rev (3m)10.59%
EPS NY rev (1m)7.11%
EPS NY rev (3m)6.03%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-2.16%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-0.91%
Valuation
Industry RankSector Rank
PE 49.43
Fwd PE 31.14
P/S 4.95
P/FCF 29.6
P/OCF 28.99
P/B 10.21
P/tB 11.8
EV/EBITDA 32.49
EPS(TTM)9.6
EY2.02%
EPS(NY)15.24
Fwd EY3.21%
FCF(TTM)16.03
FCFY3.38%
OCF(TTM)16.37
OCFY3.45%
SpS95.93
BVpS46.49
TBVpS40.22
PEG (NY)0.84
PEG (5Y)N/A
Graham Number100.21
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 9.66
F-Score7
WACC7.57%
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 Y58.65%
EPS Next 2Y40.81%
EPS Next 3Y32.92%
EPS Next 5Y22.44%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.59%
Revenue growth 5Y16.88%
Sales Q2Q%6.81%
Revenue Next Year13.44%
Revenue Next 2Y13.62%
Revenue Next 3Y13.29%
Revenue Next 5Y12.44%
EBIT growth 1Y61.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year50.25%
EBIT Next 3Y32.32%
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.


What is the valuation status for SPOT stock?

ChartMill assigns a valuation rating of 5 / 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.