SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPOT - LU1778762911 - Common Stock
576.79 USD
-2.1 (-0.36%)
575 USD
-1.79 (-0.31%)
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 decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years SPOT had a positive operating cash flow.
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.
SPOT's Return On Equity of 18.06% is amongst the best of the industry. SPOT outperforms 86.25% of its industry peers.
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
SPOT has a better Profit Margin (8.32%) than 80.00% of its industry peers.
SPOT has a Operating Margin of 11.68%. This is in the better half of the industry: SPOT outperforms 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.
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
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.
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 10.94. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
SPOT's Altman-Z score of 10.94 is amongst the best of the industry. SPOT outperforms 91.25% 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's Debt to FCF ratio of 0.75 is amongst the best of 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.
The Debt to Equity ratio of SPOT (0.06) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.94 |
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's Current ratio of 1.61 is fine compared to the rest 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's Quick ratio of 1.61 is fine compared to the rest of the industry. SPOT outperforms 72.50% 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.
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
SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.72% yearly.
Based on estimates for the next years, SPOT will show a quite strong growth in Revenue. The Revenue will grow by 11.87% on average per year.
EPS Next Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.72%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
Revenue Next 5Y11.87%
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 87.26, which means the current valuation is very expensive for 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.
When comparing the Price/Earnings ratio of SPOT to the average of the S&P500 Index (26.15), we can say SPOT is valued expensively.
Based on the Price/Forward Earnings ratio of 42.32, the valuation of SPOT can be described as expensive.
68.75% 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 36.22. SPOT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.26 | ||
| Fwd PE | 42.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SPOT.
Based on the Price/Free Cash Flow ratio, SPOT is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.08 | ||
| EV/EBITDA | 44.1 |
4.3 Compensation for Growth
SPOT has a very decent profitability rating, which may justify a higher PE ratio.
SPOT's earnings are expected to grow with 41.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.94%
EPS Next 3Y41.06%
5. Dividend
5.1 Amount
SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
576.79
-2.1 (-0.36%)
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 Cap118.76B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts78.3
Price Target772.2 (33.88%)
Short Float %4.67%
Short Ratio4.24
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)8.36%
EPS NQ rev (3m)8.73%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)-6.56%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.26 | ||
| Fwd PE | 42.32 | ||
| P/S | 6.05 | ||
| P/FCF | 35.08 | ||
| P/OCF | 34.54 | ||
| P/B | 13.14 | ||
| P/tB | 15.33 | ||
| EV/EBITDA | 44.1 |
EPS(TTM)6.61
EY1.15%
EPS(NY)13.63
Fwd EY2.36%
FCF(TTM)16.44
FCFY2.85%
OCF(TTM)16.7
OCFY2.89%
SpS95.31
BVpS43.88
TBVpS37.61
PEG (NY)N/A
PEG (5Y)N/A
Graham Number80.78
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 | 10.94 |
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 5Y29.72%
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 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year63.74%
EBIT Next 3Y43.76%
EBIT Next 5Y29.59%
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.