SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:SPOT • LU1778762911

473.99 USD
-34.59 (-6.8%)
At close: Feb 3, 2026
473.98 USD
-0.01 (0%)
Pre-Market: 2/4/2026, 8:02:13 AM
Fundamental Rating

6

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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year SPOT was profitable.
  • 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.
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 0 1B -1B 2B

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 better Return On Equity (18.06%) than 87.50% of its industry peers.
  • SPOT has a better Return On Invested Capital (19.82%) than 96.25% of its industry peers.
Industry RankSector 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
SPOT Yearly ROA, ROE, ROICSPOT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 -400

1.3 Margins

  • SPOT has a better Profit Margin (8.32%) than 81.25% of its industry peers.
  • SPOT's Operating Margin of 11.68% is fine compared to the rest of the industry. SPOT outperforms 73.75% of its industry peers.
  • SPOT's Operating Margin has improved in the last couple of years.
  • SPOT has a Gross Margin of 31.75%. This is in the lower half of the industry: SPOT underperforms 65.00% of its industry peers.
  • SPOT's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
SPOT Yearly Profit, Operating, Gross MarginsSPOT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

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7

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SPOT is creating value.
  • SPOT has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, SPOT has more shares outstanding
  • 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 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 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 9.24 indicates that SPOT is not in any danger for bankruptcy at the moment.
  • SPOT's Altman-Z score of 9.24 is amongst the best of 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.
  • The Debt to FCF ratio of SPOT (0.75) is better than 86.25% of its industry peers.
  • SPOT has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
  • SPOT has a better Debt to Equity ratio (0.06) than 65.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.75
Altman-Z 9.24
ROIC/WACC2.6
WACC7.63%
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 0 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 1.61 indicates that SPOT should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.61, SPOT is doing good in the industry, outperforming 70.00% of the companies in the same industry.
  • A Quick Ratio of 1.61 indicates that SPOT should not have too much problems paying its short term obligations.
  • The Quick ratio of SPOT (1.61) is better than 71.25% of its industry peers.
Industry RankSector Rank
Current Ratio 1.61
Quick Ratio 1.61
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 2B 4B 6B 8B

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6

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.
  • 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

  • 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

  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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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4

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 70.64, the valuation of SPOT can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 68.75% of the companies listed in the same industry.
  • SPOT is valuated expensively when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 32.15, the valuation of SPOT can be described as expensive.
  • Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
  • SPOT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.51.
Industry RankSector Rank
PE 70.64
Fwd PE 32.15
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • SPOT's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, SPOT is valued a bit cheaper than 76.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.37
EV/EBITDA 34.7
SPOT Per share dataSPOT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • 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.
PEG (NY)2.07
PEG (5Y)N/A
EPS Next 2Y50.58%
EPS Next 3Y42.21%

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0

5. Dividend

5.1 Amount

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

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SPOTIFY TECHNOLOGY SA

NYSE:SPOT (2/3/2026, 8:04:00 PM)

Premarket: 473.98 -0.01 (0%)

473.99

-34.59 (-6.8%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-04
Earnings (Next)02-10
Inst Owners67.66%
Inst Owner Change-1.5%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap97.59B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts80
Price Target767.55 (61.93%)
Short Float %4%
Short Ratio2.93
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)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)-0.52%
PT rev (3m)0.24%
EPS NQ rev (1m)2.93%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)0.28%
EPS NY rev (3m)34.19%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
Industry RankSector Rank
PE 70.64
Fwd PE 32.15
P/S 4.89
P/FCF 28.37
P/OCF 27.94
P/B 10.63
P/tB 12.4
EV/EBITDA 34.7
EPS(TTM)6.71
EY1.42%
EPS(NY)14.74
Fwd EY3.11%
FCF(TTM)16.71
FCFY3.52%
OCF(TTM)16.97
OCFY3.58%
SpS96.85
BVpS44.59
TBVpS38.22
PEG (NY)2.07
PEG (5Y)N/A
Graham Number82.05
Profitability
Industry RankSector 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 RankSector 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 9.24
F-Score6
WACC7.63%
ROIC/WACC2.6
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 Y34.11%
EPS Next 2Y50.58%
EPS Next 3Y42.21%
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 2Y11.7%
Revenue Next 3Y12.45%
Revenue Next 5Y12.46%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year71.22%
EBIT Next 3Y44.05%
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.