SPOTIFY TECHNOLOGY SA (SPOT) Fundamental Analysis & Valuation

NYSE:SPOT • LU1778762911

Current stock price

475 USD
+2.52 (+0.53%)
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475 USD
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This SPOT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. SPOT Profitability Analysis

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 multiple years SPOT reported negative net income over the last 5 years.
  • SPOT had a positive operating cash flow in each of the past 5 years.
SPOT Yearly Net Income VS EBIT VS OCF VS FCFSPOT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B 2B

1.2 Ratios

  • With an excellent Return On Assets value of 14.73%, SPOT belongs to the best of the industry, outperforming 92.41% of the companies in the same industry.
  • With an excellent Return On Equity value of 26.56%, SPOT belongs to the best of the industry, outperforming 91.14% of the companies in the same industry.
  • SPOT has a better Return On Invested Capital (19.44%) than 97.47% of its industry peers.
Industry RankSector Rank
ROA 14.73%
ROE 26.56%
ROIC 19.44%
ROA(3y)5.95%
ROA(5y)2.35%
ROE(3y)8.69%
ROE(5y)1.31%
ROIC(3y)N/A
ROIC(5y)N/A
SPOT Yearly ROA, ROE, ROICSPOT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200 -200 -400

1.3 Margins

  • With an excellent Profit Margin value of 12.87%, SPOT belongs to the best of the industry, outperforming 89.87% of the companies in the same industry.
  • SPOT's Operating Margin of 12.79% is fine compared to the rest of the industry. SPOT outperforms 77.22% of its industry peers.
  • SPOT's Gross Margin of 31.98% is on the low side compared to the rest of the industry. SPOT is outperformed by 62.03% of its industry peers.
  • In the last couple of years the Gross Margin of SPOT has grown nicely.
Industry RankSector Rank
OM 12.79%
PM (TTM) 12.87%
GM 31.98%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.62%
GM growth 5Y4.57%
SPOT Yearly Profit, Operating, Gross MarginsSPOT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

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7

2. SPOT Health Analysis

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.
  • Compared to 1 year ago, SPOT has an improved debt to assets ratio.
SPOT Yearly Shares OutstandingSPOT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M
SPOT Yearly Total Debt VS Total AssetsSPOT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • SPOT has an Altman-Z score of 9.48. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
  • SPOT's Altman-Z score of 9.48 is amongst the best of the industry. SPOT outperforms 97.47% of its industry peers.
  • SPOT has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.68, SPOT belongs to the best of the industry, outperforming 88.61% of the companies in the same industry.
  • A Debt/Equity ratio of 0.05 indicates that SPOT is not too dependend on debt financing.
  • SPOT's Debt to Equity ratio of 0.05 is fine compared to the rest of the industry. SPOT outperforms 67.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.68
Altman-Z 9.48
ROIC/WACC2.61
WACC7.45%
SPOT Yearly LT Debt VS Equity VS FCFSPOT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.72 indicates that SPOT should not have too much problems paying its short term obligations.
  • SPOT has a Current ratio of 1.72. This is in the better half of the industry: SPOT outperforms 70.89% of its industry peers.
  • SPOT has a Quick Ratio of 1.72. 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 (1.72) than 73.42% of its industry peers.
Industry RankSector Rank
Current Ratio 1.72
Quick Ratio 1.72
SPOT Yearly Current Assets VS Current LiabilitesSPOT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SPOT Growth Analysis

3.1 Past

  • SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.72%, which is quite impressive.
  • The Revenue has grown by 9.65% in the past year. This is quite good.
  • The Revenue has been growing by 16.88% on average over the past years. This is quite good.
EPS 1Y (TTM)51.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%151.7%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.59%
Revenue growth 5Y16.88%
Sales Q2Q%6.81%

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 22.44% on average per year.
  • The Revenue is expected to grow by 12.44% on average over the next years. This is quite good.
EPS Next Y58.65%
EPS Next 2Y40.81%
EPS Next 3Y32.92%
EPS Next 5Y22.44%
Revenue Next Year13.44%
Revenue Next 2Y13.63%
Revenue Next 3Y13.25%
Revenue Next 5Y12.44%

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.
SPOT Yearly Revenue VS EstimatesSPOT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
SPOT Yearly EPS VS EstimatesSPOT Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 0 10 20 30

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5

4. SPOT Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 49.33, 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 69.62% 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 24.75.
  • With a Price/Forward Earnings ratio of 31.10, SPOT can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than 72.15% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, SPOT is valued a bit more expensive.
Industry RankSector Rank
PE 49.33
Fwd PE 31.1
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as SPOT.
  • SPOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 74.68% of the companies in the same industry.
Industry RankSector Rank
P/FCF 29.57
EV/EBITDA 31.63
SPOT Per share dataSPOT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • SPOT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of SPOT may justify a higher PE ratio.
  • SPOT's earnings are expected to grow with 32.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y40.81%
EPS Next 3Y32.92%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SPOT Dividend Analysis

5.1 Amount

  • No dividends for SPOT!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

SPOT Fundamentals: All Metrics, Ratios and Statistics

SPOTIFY TECHNOLOGY SA

NYSE:SPOT (3/30/2026, 6:33:42 PM)

After market: 475 0 (0%)

475

+2.52 (+0.53%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)02-10
Earnings (Next)04-21
Inst Owners68.17%
Inst Owner Change1.66%
Ins Owners15.33%
Ins Owner Change0%
Market Cap97.79B
Revenue(TTM)17.19B
Net Income(TTM)2.21B
Analysts82.17
Price Target664.64 (39.92%)
Short Float %4.05%
Short Ratio2
Dividend
Industry RankSector 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)2
Avg EPS beat(2)60.73%
Min EPS beat(2)58.63%
Max EPS beat(2)62.82%
EPS beat(4)2
Avg EPS beat(4)-13.13%
Min EPS beat(4)-121.7%
Max EPS beat(4)62.82%
EPS beat(8)4
Avg EPS beat(8)-1.71%
EPS beat(12)6
Avg EPS beat(12)27.76%
EPS beat(16)7
Avg EPS beat(16)29%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-1%
Revenue beat(8)0
Avg Revenue beat(8)-1.97%
Revenue beat(12)0
Avg Revenue beat(12)-2.18%
Revenue beat(16)0
Avg Revenue beat(16)-1.86%
PT rev (1m)-0.84%
PT rev (3m)-13.86%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)10.93%
EPS NY rev (1m)7.11%
EPS NY rev (3m)5.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.9%
Valuation
Industry RankSector Rank
PE 49.33
Fwd PE 31.1
P/S 4.94
P/FCF 29.57
P/OCF 28.95
P/B 10.19
P/tB 11.79
EV/EBITDA 31.63
EPS(TTM)9.63
EY2.03%
EPS(NY)15.28
Fwd EY3.22%
FCF(TTM)16.07
FCFY3.38%
OCF(TTM)16.41
OCFY3.45%
SpS96.14
BVpS46.59
TBVpS40.31
PEG (NY)0.84
PEG (5Y)N/A
Graham Number100.48
Profitability
Industry RankSector Rank
ROA 14.73%
ROE 26.56%
ROCE 24.61%
ROIC 19.44%
ROICexc N/A
ROICexgc N/A
OM 12.79%
PM (TTM) 12.87%
GM 31.98%
FCFM 16.71%
ROA(3y)5.95%
ROA(5y)2.35%
ROE(3y)8.69%
ROE(5y)1.31%
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 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.62%
GM growth 5Y4.57%
F-Score7
Asset Turnover1.14
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.68
Debt/EBITDA 0.19
Cap/Depr 59.8%
Cap/Sales 0.35%
Interest Coverage 61.06
Cash Conversion 127.52%
Profit Quality 129.84%
Current Ratio 1.72
Quick Ratio 1.72
Altman-Z 9.48
F-Score7
WACC7.45%
ROIC/WACC2.61
Cap/Depr(3y)25.88%
Cap/Depr(5y)31.84%
Cap/Sales(3y)0.17%
Cap/Sales(5y)0.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%151.7%
EPS Next Y58.65%
EPS Next 2Y40.81%
EPS Next 3Y32.92%
EPS Next 5Y22.44%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y13.59%
Revenue growth 5Y16.88%
Sales Q2Q%6.81%
Revenue Next Year13.44%
Revenue Next 2Y13.63%
Revenue Next 3Y13.25%
Revenue Next 5Y12.44%
EBIT growth 1Y61.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year50.25%
EBIT Next 3Y32.32%
EBIT Next 5Y22.08%
FCF growth 1Y25.74%
FCF growth 3Y415.22%
FCF growth 5Y73.82%
OCF growth 1Y27.47%
OCF growth 3Y299.5%
OCF growth 5Y62.48%

SPOTIFY TECHNOLOGY SA / SPOT Fundamental Analysis 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 5 / 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.