SPOTIFY TECHNOLOGY SA (SPOT) Fundamental Analysis & Valuation

NYSE:SPOT • LU1778762911

Current stock price

536.61 USD
+5.16 (+0.97%)
At close:
536.74 USD
+0.13 (+0.02%)
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.
  • The reported net income has been mixed in the past 5 years: SPOT reported negative net income in multiple 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's Return On Assets of 14.73% is amongst the best of the industry. SPOT outperforms 93.67% of its industry peers.
  • The Return On Equity of SPOT (26.56%) is better than 92.41% of its industry peers.
  • The Return On Invested Capital of SPOT (19.44%) is better than 96.20% 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

  • With an excellent Profit Margin value of 12.87%, SPOT belongs to the best of the industry, outperforming 91.14% of the companies in the same industry.
  • SPOT's Operating Margin of 12.79% is fine compared to the rest of the industry. SPOT outperforms 77.22% of its industry peers.
  • The Gross Margin of SPOT (31.98%) is worse than 63.29% of its industry peers.
  • In the last couple of years the Gross Margin of SPOT has grown nicely.
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

  • 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.
  • The number of shares outstanding for SPOT has been increased compared to 5 years ago.
  • The debt/assets ratio for SPOT has been reduced compared to a year ago.
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 10.24 indicates that SPOT is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 10.24, SPOT belongs to the best of the industry, outperforming 97.47% of the companies in the same industry.
  • The Debt to FCF ratio of SPOT is 0.68, which is an excellent value as it means it would take SPOT, only 0.68 years of fcf income to pay off all of its debts.
  • SPOT has a Debt to FCF ratio of 0.68. This is amongst the best in the industry. SPOT outperforms 87.34% 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.
  • The Debt to Equity ratio of SPOT (0.05) is better than 67.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.68
Altman-Z 10.24
ROIC/WACC2.61
WACC7.46%
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 72.15% 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 74.68% 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

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

  • Based on estimates for the next years, SPOT will show a very strong growth in Earnings Per Share. The EPS will grow by 22.44% on average per year.
  • Based on estimates for the next years, SPOT will show a quite strong growth in Revenue. The Revenue will grow by 12.44% on average per year.
EPS Next Y58.87%
EPS Next 2Y40.88%
EPS Next 3Y33.02%
EPS Next 5Y22.44%
Revenue Next Year13.45%
Revenue Next 2Y13.62%
Revenue Next 3Y13.25%
Revenue Next 5Y12.44%

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.
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

  • The Price/Earnings ratio is 54.48, which means the current valuation is very expensive for SPOT.
  • Compared to the rest of the industry, the Price/Earnings ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 67.09% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.87, SPOT is valued quite expensively.
  • With a Price/Forward Earnings ratio of 34.29, SPOT can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than 70.89% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of SPOT to the average of the S&P500 Index (38.51), we can say SPOT is valued inline with the index average.
Industry RankSector Rank
PE 54.48
Fwd PE 34.29
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SPOT is valued a bit cheaper than 60.76% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 74.68% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 32.65
EV/EBITDA 35.28
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.
  • The decent profitability rating of SPOT may justify a higher PE ratio.
  • A more expensive valuation may be justified as SPOT's earnings are expected to grow with 33.02% in the coming years.
PEG (NY)0.93
PEG (5Y)N/A
EPS Next 2Y40.88%
EPS Next 3Y33.02%

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%

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SPOT Fundamentals: All Metrics, Ratios and Statistics

SPOTIFY TECHNOLOGY SA

NYSE:SPOT (4/17/2026, 7:00:00 PM)

After market: 536.74 +0.13 (+0.02%)

536.61

+5.16 (+0.97%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-10
Earnings (Next)04-28
Inst Owners68.84%
Inst Owner Change0%
Ins Owners15.32%
Ins Owner Change-0.61%
Market Cap110.48B
Revenue(TTM)17.19B
Net Income(TTM)2.21B
Analysts82.13
Price Target662.2 (23.4%)
Short Float %4.14%
Short Ratio2.32
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)-1.21%
PT rev (3m)-14.17%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)10.33%
EPS NY rev (1m)0.14%
EPS NY rev (3m)5.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.89%
Valuation
Industry RankSector Rank
PE 54.48
Fwd PE 34.29
P/S 5.46
P/FCF 32.65
P/OCF 31.97
P/B 11.26
P/tB 13.01
EV/EBITDA 35.28
EPS(TTM)9.85
EY1.84%
EPS(NY)15.65
Fwd EY2.92%
FCF(TTM)16.44
FCFY3.06%
OCF(TTM)16.78
OCFY3.13%
SpS98.35
BVpS47.66
TBVpS41.23
PEG (NY)0.93
PEG (5Y)N/A
Graham Number102.78 (-80.85%)
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 10.24
F-Score7
WACC7.46%
ROIC/WACC2.61
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 Y58.87%
EPS Next 2Y40.88%
EPS Next 3Y33.02%
EPS Next 5Y22.44%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.59%
Revenue growth 5Y16.88%
Sales Q2Q%6.81%
Revenue Next Year13.45%
Revenue Next 2Y13.62%
Revenue Next 3Y13.25%
Revenue Next 5Y12.44%
EBIT growth 1Y61.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year50.3%
EBIT Next 3Y32.38%
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.


Can you provide the valuation status for SPOTIFY TECHNOLOGY SA?

ChartMill assigns a valuation rating of 5 / 10 to SPOTIFY TECHNOLOGY SA (SPOT). This can be considered as Fairly Valued.


What is the profitability of SPOT stock?

SPOTIFY TECHNOLOGY SA (SPOT) has a profitability rating of 6 / 10.


How financially healthy is SPOTIFY TECHNOLOGY SA?

The financial health rating of SPOTIFY TECHNOLOGY SA (SPOT) is 7 / 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 58.87% in the next year.