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 is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
SPOT had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 9.56%, SPOT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 19.82%, SPOT belongs to the top 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

The Profit Margin of SPOT (8.32%) is better than 81.25% of its industry peers.
With a decent Operating Margin value of 11.68%, SPOT is doing good in the industry, outperforming 73.75% of the companies in the same industry.
SPOT's Operating Margin has improved in the last couple of years.
SPOT has a worse Gross Margin (31.75%) than 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SPOT 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.

2.2 Solvency

SPOT has an Altman-Z score of 9.59. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
SPOT has a Altman-Z score of 9.59. This is amongst the best in the industry. SPOT outperforms 97.50% 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.
Looking at the Debt to FCF ratio, with a value of 0.75, SPOT belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that SPOT is not too dependend on debt financing.
SPOT's Debt to Equity ratio of 0.06 is fine compared to the rest 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	9.59

ROIC/WACC2.6

WACC7.63%

2.3 Liquidity

A Current Ratio of 1.61 indicates that SPOT should not have too much problems paying 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 Quick ratio of 1.61. This is in the better half of the industry: SPOT outperforms 71.25% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.61
Quick Ratio	1.61

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
Looking at the last year, SPOT shows a quite strong growth in Revenue. The Revenue has grown by 11.89% in the last year.
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 29.34% yearly.
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 Y34.11%

EPS Next 2Y50.58%

EPS Next 3Y42.21%

EPS Next 5Y29.34%

Revenue Next Year9.53%

Revenue Next 2Y11.7%

Revenue Next 3Y12.45%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

SPOT is valuated quite expensively with a Price/Earnings ratio of 73.47.
Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than 67.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.30, SPOT is valued quite expensively.
A Price/Forward Earnings ratio of 33.46 indicates a quite expensive valuation of SPOT.
70.00% of the companies in the same industry are more expensive than SPOT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.57. SPOT is valued slightly more expensive when compared to this.

		Industry Rank	Sector Rank
PE	73.47
Fwd PE	33.46

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 75.00% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	29.53
EV/EBITDA	36.62

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 42.21% in the coming years. This may justify a more expensive valuation.