SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
592.835 USD
+7.37 (+1.26%)
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. While SPOT has a great health rating, its profitability is only average at the moment. SPOT is not valued too expensively and it also shows a decent 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 Return On Assets of 9.56%. This is amongst the best in the industry. SPOT outperforms 86.25% of its industry peers.
Looking at the Return On Equity, with a value of 18.06%, SPOT belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
SPOT has a Return On Invested Capital of 19.82%. This is amongst the best in 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
The Profit Margin of SPOT (8.32%) is better than 80.00% of its industry peers.
The Operating Margin of SPOT (11.68%) is better than 73.75% of its industry peers.
In the last couple of years the Operating Margin of SPOT has grown nicely.
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.
Compared to 1 year ago, SPOT has more shares outstanding
SPOT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SPOT has been reduced compared to a year ago.
2.2 Solvency
SPOT has an Altman-Z score of 11.07. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
SPOT's Altman-Z score of 11.07 is amongst the best of the industry. SPOT outperforms 93.75% 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 Debt to FCF ratio of 0.75. This is amongst the best in the industry. SPOT outperforms 85.00% 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 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 11.07 |
ROIC/WACC2.66
WACC7.44%
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 Current ratio of 1.61. This is in the better half of the industry: SPOT outperforms 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.
SPOT has a better Quick ratio (1.61) than 72.50% of its industry peers.
| 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.
The Revenue has grown by 11.89% in the past year. This is quite good.
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 29.24% on average per year.
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
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
A Price/Earnings ratio of 90.23 indicates a quite expensive valuation of SPOT.
SPOT's Price/Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 65.00% of the companies in the same industry.
SPOT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
With a Price/Forward Earnings ratio of 43.73, SPOT can be considered very expensive at the moment.
SPOT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 68.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SPOT to the average of the S&P500 Index (35.79), we can say SPOT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.23 | ||
| Fwd PE | 43.73 |
4.2 Price Multiples
SPOT's Enterprise Value to EBITDA is on the same level as 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 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.04 | ||
| EV/EBITDA | 44.82 |
4.3 Compensation for Growth
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 41.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.94%
EPS Next 3Y41.06%
5. Dividend
5.1 Amount
No dividends for SPOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:SPOT (11/26/2025, 11:31:08 AM)
592.835
+7.37 (+1.26%)
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 Cap121.36B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts78.3
Price Target772.2 (30.26%)
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)0.38%
PT rev (3m)2.53%
EPS NQ rev (1m)7.75%
EPS NQ rev (3m)6.05%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)-6.56%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 90.23 | ||
| Fwd PE | 43.73 | ||
| P/S | 6.22 | ||
| P/FCF | 36.04 | ||
| P/OCF | 35.49 | ||
| P/B | 13.51 | ||
| P/tB | 15.76 | ||
| EV/EBITDA | 44.82 |
EPS(TTM)6.57
EY1.11%
EPS(NY)13.56
Fwd EY2.29%
FCF(TTM)16.45
FCFY2.77%
OCF(TTM)16.7
OCFY2.82%
SpS95.34
BVpS43.89
TBVpS37.63
PEG (NY)N/A
PEG (5Y)N/A
Graham Number80.55
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 | 11.07 |
F-Score6
WACC7.44%
ROIC/WACC2.66
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.