SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
586.57 USD
+7.18 (+1.24%)
586.57 USD
0 (0%)
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. SPOT has an excellent financial health rating, but there are some minor concerns on its profitability. SPOT has a correct valuation and a medium growth rate.
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.
In the past 5 years SPOT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.56%, SPOT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
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.
SPOT's Return On Invested Capital of 19.82% is amongst the best of 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
Looking at the Profit Margin, with a value of 8.32%, SPOT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
SPOT has a Operating Margin of 11.68%. This is in the better half of the industry: SPOT outperforms 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 65.00% 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.
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
An Altman-Z score of 10.96 indicates that SPOT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.96, SPOT belongs to the best of the industry, outperforming 95.00% 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.
With an excellent Debt to FCF ratio value of 0.75, SPOT belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
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 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.96 |
ROIC/WACC2.64
WACC7.5%
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.
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's Quick ratio of 1.61 is fine compared to the rest 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
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%.
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
Based on estimates for the next years, SPOT will show a very strong growth in Earnings Per Share. The EPS will grow by 29.72% on average per year.
SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.87% yearly.
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
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
A Price/Earnings ratio of 87.42 indicates a quite expensive valuation of SPOT.
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.
SPOT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.59.
The Price/Forward Earnings ratio is 39.78, which means the current valuation is very expensive for SPOT.
SPOT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 67.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, SPOT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.42 | ||
| Fwd PE | 39.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SPOT.
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 | 35.15 | ||
| EV/EBITDA | 44.2 |
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)2.65
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% |
586.57
+7.18 (+1.24%)
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 Cap120.77B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price TargetN/A
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)2.27%
EPS NQ rev (3m)10.72%
EPS NY rev (1m)35.44%
EPS NY rev (3m)26.56%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.42 | ||
| Fwd PE | 39.78 | ||
| P/S | 6.06 | ||
| P/FCF | 35.15 | ||
| P/OCF | 34.61 | ||
| P/B | 13.17 | ||
| P/tB | 15.37 | ||
| EV/EBITDA | 44.2 |
EPS(TTM)6.71
EY1.14%
EPS(NY)14.74
Fwd EY2.51%
FCF(TTM)16.69
FCFY2.85%
OCF(TTM)16.95
OCFY2.89%
SpS96.73
BVpS44.53
TBVpS38.17
PEG (NY)2.65
PEG (5Y)N/A
Graham Number82
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 | 10.96 |
F-Score6
WACC7.5%
ROIC/WACC2.64
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.