SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
508.04 USD
-20.88 (-3.95%)
508.7 USD
+0.66 (+0.13%)
Overall SPOT gets a fundamental rating of 6 out of 10. We evaluated SPOT against 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- SPOT had positive earnings in the past year.
- In the past year SPOT had a positive cash flow from operations.
- In the past 5 years SPOT reported 4 times negative net income.
- Each year in the past 5 years SPOT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 9.56%, SPOT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- With an excellent Return On Equity value of 18.06%, SPOT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- SPOT has a better Return On Invested Capital (19.82%) than 96.25% 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
- 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.
- 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.
- 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
- SPOT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- SPOT has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for SPOT has been increased compared to 5 years ago.
- Compared to 1 year ago, SPOT has an improved debt to assets ratio.
2.2 Solvency
- SPOT has an Altman-Z score of 10.18. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 10.18, 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.
- SPOT has a better Debt to FCF ratio (0.75) than 86.25% of its industry peers.
- A Debt/Equity ratio of 0.06 indicates that SPOT is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.06, SPOT is in the better half of 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 | 10.18 |
ROIC/WACC2.65
WACC7.49%
2.3 Liquidity
- A Current Ratio of 1.61 indicates that SPOT should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.61, SPOT is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
- 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 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
- 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.
- Measured over the past years, SPOT shows a quite strong growth in Revenue. The Revenue has been growing by 18.30% on average per year.
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.
- Based on estimates for the next years, SPOT will show a quite strong growth in Revenue. The Revenue will grow by 12.46% on average per year.
EPS Next Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.34%
Revenue Next Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
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
- The Price/Earnings ratio is 76.63, 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 66.25% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, SPOT is valued quite expensively.
- With a Price/Forward Earnings ratio of 34.74, SPOT can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than the industry average as 71.25% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. SPOT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.63 | ||
| Fwd PE | 34.74 |
4.2 Price Multiples
- SPOT's Enterprise Value to EBITDA ratio is in line with the industry average.
- 72.50% of the companies in the same industry are more expensive than SPOT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.8 | ||
| EV/EBITDA | 39.88 |
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.
- SPOT's earnings are expected to grow with 42.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.27
PEG (5Y)N/A
EPS Next 2Y50.92%
EPS Next 3Y42.55%
5. Dividend
5.1 Amount
- SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
508.04
-20.88 (-3.95%)
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 Change0.07%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap104.60B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts80
Price Target771.57 (51.87%)
Short Float %4.8%
Short Ratio4.04
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)-0.08%
PT rev (3m)0.3%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)10.98%
EPS NY rev (1m)0.59%
EPS NY rev (3m)28.78%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.63 | ||
| Fwd PE | 34.74 | ||
| P/S | 5.31 | ||
| P/FCF | 30.8 | ||
| P/OCF | 30.33 | ||
| P/B | 11.54 | ||
| P/tB | 13.46 | ||
| EV/EBITDA | 39.88 |
EPS(TTM)6.63
EY1.31%
EPS(NY)14.62
Fwd EY2.88%
FCF(TTM)16.5
FCFY3.25%
OCF(TTM)16.75
OCFY3.3%
SpS95.62
BVpS44.02
TBVpS37.73
PEG (NY)2.27
PEG (5Y)N/A
Graham Number81.04
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 | 10.18 |
F-Score6
WACC7.49%
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 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 Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
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.