SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
498.64 USD
-3.55 (-0.71%)
507.45 USD
+8.81 (+1.77%)
SPOT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. SPOT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SPOT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SPOT was profitable.
- In the past year SPOT had a positive cash flow from operations.
- 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's Return On Assets of 9.56% is amongst the best of 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.
- With an excellent Return On Invested Capital value of 19.82%, SPOT belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
| 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 amongst the best in the industry. SPOT outperforms 81.25% of its industry peers.
- The Operating Margin of SPOT (11.68%) is better 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.
- 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.
- 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 9.71 indicates that SPOT is not in any danger for bankruptcy at the moment.
- SPOT has a better Altman-Z score (9.71) than 96.25% of its industry peers.
- 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's Debt to FCF ratio of 0.75 is amongst the best of the industry. SPOT outperforms 86.25% 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 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 | 9.71 |
ROIC/WACC2.6
WACC7.63%
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 70.00% 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.
- SPOT has a better Quick ratio (1.61) than 71.25% 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 29.34% on average per year.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- SPOT is valuated quite expensively with a Price/Earnings ratio of 74.65.
- Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than 67.50% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SPOT to the average of the S&P500 Index (27.32), we can say SPOT is valued expensively.
- The Price/Forward Earnings ratio is 33.84, which means the current valuation is very expensive for SPOT.
- 70.00% of the companies in the same industry are more expensive than SPOT, based on the Price/Forward Earnings ratio.
- SPOT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.65 | ||
| Fwd PE | 33.84 |
4.2 Price Multiples
- SPOT's Enterprise Value to EBITDA ratio is in line with the industry average.
- SPOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30 | ||
| EV/EBITDA | 37.29 |
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.
- 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 42.55% in the coming years.
PEG (NY)2.21
PEG (5Y)N/A
EPS Next 2Y50.92%
EPS Next 3Y42.55%
5. Dividend
5.1 Amount
- No dividends for SPOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
498.64
-3.55 (-0.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-10 2026-02-10/amc
Inst Owners67.66%
Inst Owner Change-0.13%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap102.66B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts80
Price Target767.55 (53.93%)
Short Float %4.86%
Short Ratio3.82
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)-0.6%
PT rev (3m)-0.22%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)10.67%
EPS NY rev (1m)0.59%
EPS NY rev (3m)28.78%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.65 | ||
| Fwd PE | 33.84 | ||
| P/S | 5.18 | ||
| P/FCF | 30 | ||
| P/OCF | 29.55 | ||
| P/B | 11.24 | ||
| P/tB | 13.12 | ||
| EV/EBITDA | 37.29 |
EPS(TTM)6.68
EY1.34%
EPS(NY)14.73
Fwd EY2.95%
FCF(TTM)16.62
FCFY3.33%
OCF(TTM)16.88
OCFY3.38%
SpS96.34
BVpS44.35
TBVpS38.02
PEG (NY)2.21
PEG (5Y)N/A
Graham Number81.65
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 | 9.71 |
F-Score6
WACC7.63%
ROIC/WACC2.6
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 Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.34%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.51%
Revenue Next 2Y11.71%
Revenue Next 3Y12.3%
Revenue Next 5Y12.46%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year70.86%
EBIT Next 3Y44.8%
EBIT Next 5Y29.65%
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 for 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 financial health of SPOTIFY TECHNOLOGY SA (SPOT) stock?
The financial health rating of SPOTIFY TECHNOLOGY SA (SPOT) is 7 / 10.