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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
SPOT had a positive operating cash flow in each of the past 5 years.

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.
SPOT has a Return On Equity of 18.06%. This is amongst the best in the industry. SPOT outperforms 87.50% of its industry peers.
SPOT's Return On Invested Capital of 19.82% is amongst the best of the industry. SPOT outperforms 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's Profit Margin of 8.32% is amongst the best of the industry. SPOT outperforms 81.25% of its industry peers.
SPOT has a better Operating Margin (11.68%) than 73.75% of its industry peers.
SPOT's Operating Margin has improved in the last couple of years.
SPOT's Gross Margin of 31.75% is on the low side compared to the rest of the industry. SPOT is outperformed by 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, SPOT has more shares outstanding
Compared to 5 years ago, SPOT has more shares outstanding
SPOT has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 9.68 indicates that SPOT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.68, SPOT belongs to the best 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 has a Debt to FCF ratio of 0.75. This is amongst the best in 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	9.68

ROIC/WACC2.59

WACC7.64%

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 70.00% of its industry peers.
A Quick Ratio of 1.61 indicates that SPOT should not have too much problems paying 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

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WACC

Debt/Equity

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Altman-Z score

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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.
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

The Earnings Per Share is expected to grow by 29.34% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.46% on average over the next years. This is quite good.

EPS Next Y33.74%

EPS Next 2Y50.92%

EPS Next 3Y42.55%

EPS Next 5Y29.34%

Revenue Next Year9.51%

Revenue Next 2Y11.71%

Revenue Next 3Y12.3%

Revenue Next 5Y12.46%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 77.06 indicates a quite expensive valuation of SPOT.
Compared to the rest of the industry, the Price/Earnings ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 66.25% of the companies listed in the same industry.
SPOT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
SPOT is valuated quite expensively with a Price/Forward Earnings ratio of 34.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 70.00% of the companies listed in the same industry.
SPOT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	77.06
Fwd PE	34.93

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 75.00% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	30.97
EV/EBITDA	37.11

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPOT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SPOT may justify a higher PE ratio.
SPOT's earnings are expected to grow with 42.55% in the coming years. This may justify a more expensive valuation.