SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SPOT - LU1778762911 - Common Stock
492.05 EUR
+5.55 (+1.14%)
Taking everything into account, 1SPOT scores 6 out of 10 in our fundamental rating. 1SPOT was compared to 44 industry peers in the Entertainment industry. 1SPOT has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, 1SPOT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
1SPOT had positive earnings in the past year.
1SPOT had a positive operating cash flow in the past year.
In the past 5 years 1SPOT reported 4 times negative net income.
In the past 5 years 1SPOT always reported a positive cash flow from operatings.
1.2 Ratios
1SPOT's Return On Assets of 9.56% is amongst the best of the industry. 1SPOT outperforms 90.91% of its industry peers.
1SPOT's Return On Equity of 18.06% is fine compared to the rest of the industry. 1SPOT outperforms 79.55% of its industry peers.
1SPOT's Return On Invested Capital of 19.82% is amongst the best of the industry. 1SPOT outperforms 93.18% 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
1SPOT has a better Profit Margin (8.32%) than 77.27% of its industry peers.
1SPOT's Operating Margin of 11.68% is fine compared to the rest of the industry. 1SPOT outperforms 77.27% of its industry peers.
In the last couple of years the Operating Margin of 1SPOT has grown nicely.
Looking at the Gross Margin, with a value of 31.75%, 1SPOT is doing worse than 72.73% of the companies in the same industry.
In the last couple of years the Gross Margin of 1SPOT 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%
2. Health
2.1 Basic Checks
1SPOT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1SPOT has more shares outstanding
The number of shares outstanding for 1SPOT has been increased compared to 5 years ago.
The debt/assets ratio for 1SPOT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.86 indicates that 1SPOT is not in any danger for bankruptcy at the moment.
1SPOT's Altman-Z score of 10.86 is amongst the best of the industry. 1SPOT outperforms 90.91% of its industry peers.
The Debt to FCF ratio of 1SPOT is 0.75, which is an excellent value as it means it would take 1SPOT, only 0.75 years of fcf income to pay off all of its debts.
1SPOT has a better Debt to FCF ratio (0.75) than 93.18% of its industry peers.
1SPOT has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
1SPOT has a better Debt to Equity ratio (0.06) than 88.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.86 |
ROIC/WACC2.65
WACC7.48%
2.3 Liquidity
1SPOT has a Current Ratio of 1.61. This is a normal value and indicates that 1SPOT is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.61, 1SPOT belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
1SPOT has a Quick Ratio of 1.61. This is a normal value and indicates that 1SPOT is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.61, 1SPOT belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
1SPOT 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, 1SPOT 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
1SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.72% yearly.
The Revenue is expected to grow by 11.87% on average over the next years. This is quite good.
EPS Next Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.72%
Revenue Next Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
Revenue Next 5Y11.87%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 86.48, 1SPOT can be considered very expensive at the moment.
68.18% of the companies in the same industry are more expensive than 1SPOT, based on the Price/Earnings ratio.
1SPOT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 39.20 indicates a quite expensive valuation of 1SPOT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1SPOT is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1SPOT to the average of the S&P500 Index (23.13), we can say 1SPOT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.48 | ||
| Fwd PE | 39.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1SPOT is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1SPOT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.75 | ||
| EV/EBITDA | 43.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1SPOT may justify a higher PE ratio.
A more expensive valuation may be justified as 1SPOT's earnings are expected to grow with 42.55% in the coming years.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y50.92%
EPS Next 3Y42.55%
5. Dividend
5.1 Amount
1SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1SPOT (12/23/2025, 7:00:00 PM)
492.05
+5.55 (+1.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners67.74%
Inst Owner ChangeN/A
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap101.31B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target644.92 (31.07%)
Short Float %N/A
Short RatioN/A
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)-2.51%
PT rev (3m)1.21%
EPS NQ rev (1m)9.23%
EPS NQ rev (3m)11.47%
EPS NY rev (1m)36.24%
EPS NY rev (3m)27.31%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.48 | ||
| Fwd PE | 39.2 | ||
| P/S | 6 | ||
| P/FCF | 34.75 | ||
| P/OCF | 34.23 | ||
| P/B | 13.02 | ||
| P/tB | 15.19 | ||
| EV/EBITDA | 43.64 |
EPS(TTM)5.69
EY1.16%
EPS(NY)12.55
Fwd EY2.55%
FCF(TTM)14.16
FCFY2.88%
OCF(TTM)14.38
OCFY2.92%
SpS82.07
BVpS37.78
TBVpS32.39
PEG (NY)2.56
PEG (5Y)N/A
Graham Number69.55
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 | 10.86 |
F-Score6
WACC7.48%
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 5Y29.72%
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 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year70.86%
EBIT Next 3Y44.8%
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 / 1SPOT.MI FAQ
What is the fundamental rating for 1SPOT stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1SPOT.MI.
What is the valuation status for 1SPOT stock?
ChartMill assigns a valuation rating of 3 / 10 to SPOTIFY TECHNOLOGY SA (1SPOT.MI). This can be considered as Overvalued.
What is the profitability of 1SPOT stock?
SPOTIFY TECHNOLOGY SA (1SPOT.MI) has a profitability rating of 6 / 10.
What is the valuation of SPOTIFY TECHNOLOGY SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SPOTIFY TECHNOLOGY SA (1SPOT.MI) is 86.48 and the Price/Book (PB) ratio is 13.02.
What is the expected EPS growth for SPOTIFY TECHNOLOGY SA (1SPOT.MI) stock?
The Earnings per Share (EPS) of SPOTIFY TECHNOLOGY SA (1SPOT.MI) is expected to grow by 33.74% in the next year.