SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
598.87 USD
+6.18 (+1.04%)
598.87 USD
0 (0%)
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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SPOT was profitable.
SPOT had a positive operating cash flow in the past year.
In the past 5 years SPOT reported 4 times negative net income.
In the past 5 years SPOT always reported a positive cash flow from operatings.
1.2 Ratios
SPOT has a Return On Assets of 9.56%. This is amongst the best in the industry. SPOT outperforms 86.25% of its industry peers.
SPOT has a Return On Equity of 18.06%. This is amongst the best in the industry. SPOT outperforms 86.25% of its industry peers.
SPOT has a Return On Invested Capital of 19.82%. This is amongst the best in the industry. SPOT outperforms 95.00% 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 in the better half of the industry: SPOT outperforms 80.00% of its industry peers.
SPOT's Operating Margin of 11.68% is fine compared to the rest of the industry. SPOT outperforms 73.75% of its industry peers.
SPOT's Operating Margin has improved in the last couple of years.
SPOT has a Gross Margin of 31.75%. This is in the lower half of the industry: SPOT underperforms 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
SPOT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for SPOT has been reduced compared to a year ago.
2.2 Solvency
SPOT has an Altman-Z score of 11.32. 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 11.32, SPOT belongs to the top of the industry, outperforming 91.25% 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 has a better Debt to FCF ratio (0.75) than 85.00% of its industry peers.
SPOT has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
SPOT has a better Debt to Equity ratio (0.06) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 11.32 |
ROIC/WACC2.66
WACC7.45%
2.3 Liquidity
A Current Ratio of 1.61 indicates that SPOT should not have too much problems paying 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.
SPOT has a Quick ratio of 1.61. This is in the better half of the industry: SPOT outperforms 72.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.11% over the past year.
Looking at the last year, SPOT shows a quite strong growth in Revenue. The Revenue has grown by 11.89% in the last year.
SPOT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.30% yearly.
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
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 Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.72%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
Revenue Next 5Y11.87%
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. Valuation
4.1 Price/Earnings Ratio
SPOT is valuated quite expensively with a Price/Earnings ratio of 91.01.
Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. SPOT is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 44.12, SPOT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than 67.50% of the companies in the same industry.
SPOT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 36.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.01 | ||
| Fwd PE | 44.12 |
4.2 Price Multiples
SPOT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.57 | ||
| EV/EBITDA | 46.19 |
4.3 Compensation for Growth
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 41.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.94%
EPS Next 3Y41.06%
5. Dividend
5.1 Amount
SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
598.87
+6.18 (+1.04%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners70.11%
Inst Owner Change-1.97%
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap123.30B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts78.3
Price Target772.2 (28.94%)
Short Float %4.61%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0.38%
PT rev (3m)2.53%
EPS NQ rev (1m)8.36%
EPS NQ rev (3m)8.73%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)-6.56%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.01 | ||
| Fwd PE | 44.12 | ||
| P/S | 6.31 | ||
| P/FCF | 36.57 | ||
| P/OCF | 36.02 | ||
| P/B | 13.7 | ||
| P/tB | 15.99 | ||
| EV/EBITDA | 46.19 |
EPS(TTM)6.58
EY1.1%
EPS(NY)13.57
Fwd EY2.27%
FCF(TTM)16.38
FCFY2.73%
OCF(TTM)16.63
OCFY2.78%
SpS94.92
BVpS43.7
TBVpS37.46
PEG (NY)N/A
PEG (5Y)N/A
Graham Number80.43
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 | 11.32 |
F-Score6
WACC7.45%
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 Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.72%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
Revenue Next 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year63.74%
EBIT Next 3Y43.76%
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 decline by -1.83% in the next year.