SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - NYSE:SPOT - LU1778762911 - Common Stock
636.45 USD
-4.17 (-0.65%)
636.45 USD
0 (0%)
Taking everything into account, SPOT scores 6 out of 10 in our fundamental rating. SPOT was compared to 79 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
SPOT has a better Return On Assets (9.56%) than 86.08% of its industry peers.
The Return On Equity of SPOT (18.06%) is better than 86.08% of its industry peers.
The Return On Invested Capital of SPOT (19.82%) is better than 94.94% 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
With a decent Profit Margin value of 8.32%, SPOT is doing good in the industry, outperforming 79.75% of the companies in the same industry.
Looking at the Operating Margin, with a value of 11.68%, SPOT is in the better half of the industry, outperforming 73.42% of the companies in the same industry.
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 65.82% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SPOT is creating value.
SPOT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SPOT has more shares outstanding
Compared to 1 year ago, SPOT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.89 indicates that SPOT is not in any danger for bankruptcy at the moment.
SPOT has a Altman-Z score of 11.89. This is amongst the best in the industry. SPOT outperforms 93.67% of its industry peers.
SPOT has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
SPOT has a better Debt to FCF ratio (0.75) than 84.81% 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.
Looking at the Debt to Equity ratio, with a value of 0.06, SPOT is in the better half of the industry, outperforming 63.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 11.89 |
ROIC/WACC2.65
WACC7.48%
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.
With a decent Current ratio value of 1.61, SPOT is doing good in the industry, outperforming 69.62% of the companies in the same industry.
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 72.15% of the companies in the same industry.
| 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.
SPOT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.89%.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
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
SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.24% yearly.
The Revenue is expected to grow by 12.31% on average over the next years. This is quite good.
EPS Next Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.24%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
Revenue Next 5Y12.31%
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
With a Price/Earnings ratio of 96.43, SPOT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than the industry average as 62.03% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.51, SPOT is valued quite expensively.
Based on the Price/Forward Earnings ratio of 46.78, the valuation of SPOT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 63.29% of the companies listed 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 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.43 | ||
| Fwd PE | 46.78 |
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 65.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.55 | ||
| EV/EBITDA | 49.32 |
4.3 Compensation for Growth
The decent profitability rating of SPOT may justify a higher PE ratio.
SPOT's earnings are expected to grow with 41.06% in the coming years. This may justify a more expensive valuation.
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 |
636.45
-4.17 (-0.65%)
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 Cap130.29B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts78.3
Price Target765.68 (20.3%)
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)-0.47%
PT rev (3m)1.9%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)-5.47%
EPS NY rev (3m)-35.97%
Revenue NQ rev (1m)-1.2%
Revenue NQ rev (3m)-1.75%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.43 | ||
| Fwd PE | 46.78 | ||
| P/S | 6.65 | ||
| P/FCF | 38.55 | ||
| P/OCF | 37.97 | ||
| P/B | 14.45 | ||
| P/tB | 16.85 | ||
| EV/EBITDA | 49.32 |
EPS(TTM)6.6
EY1.04%
EPS(NY)13.61
Fwd EY2.14%
FCF(TTM)16.51
FCFY2.59%
OCF(TTM)16.76
OCFY2.63%
SpS95.69
BVpS44.05
TBVpS37.76
PEG (NY)N/A
PEG (5Y)N/A
Graham Number80.88
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 | 11.89 |
F-Score6
WACC7.48%
ROIC/WACC2.65
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 5Y29.24%
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 5Y12.31%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year63.74%
EBIT Next 3Y43.76%
EBIT Next 5Y30.54%
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.