SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
BIT:1SPOT - Euronext Milan - LU1778762911 - Common Stock - Currency: EUR
Overall 1SPOT gets a fundamental rating of 6 out of 10. We evaluated 1SPOT against 503 industry peers in the Entertainment industry. 1SPOT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
1SPOT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 9.19%, 1SPOT belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
1SPOT's Return On Equity of 18.66% is amongst the best of the industry. 1SPOT outperforms 81.82% of its industry peers.
1SPOT has a better Return On Invested Capital (21.54%) than 97.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 18.66% | ||
| ROIC | 21.54% |
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
With a decent Profit Margin value of 7.19%, 1SPOT is doing good in the industry, outperforming 72.73% of the companies in the same industry.
1SPOT has a Operating Margin of 10.51%. This is in the better half of the industry: 1SPOT outperforms 72.73% of its industry peers.
In the last couple of years the Operating Margin of 1SPOT has grown nicely.
The Gross Margin of 1SPOT (31.10%) is worse than 79.55% of its industry peers.
In the last couple of years the Gross Margin of 1SPOT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.51% | ||
| PM (TTM) | 7.19% | ||
| GM | 31.1% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1SPOT is creating value.
Compared to 1 year ago, 1SPOT has more shares outstanding
Compared to 5 years ago, 1SPOT has more shares outstanding
The debt/assets ratio for 1SPOT has been reduced compared to a year ago.
2.2 Solvency
1SPOT has an Altman-Z score of 13.03. This indicates that 1SPOT is financially healthy and has little risk of bankruptcy at the moment.
1SPOT's Altman-Z score of 13.03 is amongst the best of the industry. 1SPOT outperforms 93.18% of its industry peers.
1SPOT has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
1SPOT's Debt to FCF ratio of 0.81 is amongst the best of the industry. 1SPOT outperforms 95.45% of its industry peers.
1SPOT has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.07, 1SPOT belongs to the top of the industry, outperforming 84.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 13.03 |
ROIC/WACC2.78
WACC7.75%
2.3 Liquidity
1SPOT has a Current Ratio of 1.48. This is a normal value and indicates that 1SPOT is financially healthy and should not expect problems in meeting its short term obligations.
1SPOT has a better Current ratio (1.48) than 84.09% of its industry peers.
1SPOT has a Quick Ratio of 1.48. This is a normal value and indicates that 1SPOT is financially healthy and should not expect problems in meeting its short term obligations.
1SPOT's Quick ratio of 1.48 is amongst the best of the industry. 1SPOT outperforms 84.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
1SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 4575.00%, which is quite impressive.
1SPOT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.24%.
1SPOT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.30% yearly.
EPS 1Y (TTM)4575%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.31%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.24%
3.2 Future
The Earnings Per Share is expected to grow by 28.28% on average over the next years. This is a very strong growth
1SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.55% yearly.
EPS Next Y59.35%
EPS Next 2Y52.77%
EPS Next 3Y43.02%
EPS Next 5Y28.28%
Revenue Next Year13.7%
Revenue Next 2Y14.78%
Revenue Next 3Y14.32%
Revenue Next 5Y12.55%
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
A Price/Earnings ratio of 106.06 indicates a quite expensive valuation of 1SPOT.
1SPOT's Price/Earnings ratio is a bit cheaper when compared to the industry. 1SPOT is cheaper than 61.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. 1SPOT is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 46.27, 1SPOT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SPOT.
1SPOT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.06 | ||
| Fwd PE | 46.27 |
4.2 Price Multiples
1SPOT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1SPOT is more expensive than 68.18% of the companies in the same industry.
1SPOT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.65 | ||
| EV/EBITDA | 62.04 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1SPOT may justify a higher PE ratio.
1SPOT's earnings are expected to grow with 43.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.79
PEG (5Y)N/A
EPS Next 2Y52.77%
EPS Next 3Y43.02%
5. Dividend
5.1 Amount
1SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1SPOT (6/10/2025, 7:00:00 PM)
595
-19.7 (-3.2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners69.05%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap121.80B
Analysts76.96
Price Target570.04 (-4.19%)
Short Float %N/A
Short RatioN/A
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)0
Avg EPS beat(2)-32.7%
Min EPS beat(2)-52.29%
Max EPS beat(2)-13.1%
EPS beat(4)1
Avg EPS beat(4)-14.82%
Min EPS beat(4)-52.29%
Max EPS beat(4)23.46%
EPS beat(8)4
Avg EPS beat(8)45.94%
EPS beat(12)4
Avg EPS beat(12)23.18%
EPS beat(16)7
Avg EPS beat(16)27.54%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-0.75%
Revenue beat(4)0
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.07%
Revenue beat(12)0
Avg Revenue beat(12)-1.92%
Revenue beat(16)1
Avg Revenue beat(16)-1.48%
PT rev (1m)-2.57%
PT rev (3m)-5.86%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-5.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.31%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-2.56%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 106.06 | ||
| Fwd PE | 46.27 | ||
| P/S | 7.51 | ||
| P/FCF | 46.65 | ||
| P/OCF | 46.33 | ||
| P/B | 19.5 | ||
| P/tB | 24.13 | ||
| EV/EBITDA | 62.04 |
EPS(TTM)5.61
EY0.94%
EPS(NY)12.86
Fwd EY2.16%
FCF(TTM)12.75
FCFY2.14%
OCF(TTM)12.84
OCFY2.16%
SpS79.27
BVpS30.52
TBVpS24.66
PEG (NY)1.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.19% | ||
| ROE | 18.66% | ||
| ROCE | 25.38% | ||
| ROIC | 21.54% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 10.51% | ||
| PM (TTM) | 7.19% | ||
| GM | 31.1% | ||
| FCFM | 16.09% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.25 | ||
| Cap/Depr | 15.38% | ||
| Cap/Sales | 0.11% | ||
| Interest Coverage | 42.65 | ||
| Cash Conversion | 144.21% | ||
| Profit Quality | 223.93% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 13.03 |
F-Score7
WACC7.75%
ROIC/WACC2.78
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)4575%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%10.31%
EPS Next Y59.35%
EPS Next 2Y52.77%
EPS Next 3Y43.02%
EPS Next 5Y28.28%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.24%
Revenue Next Year13.7%
Revenue Next 2Y14.78%
Revenue Next 3Y14.32%
Revenue Next 5Y12.55%
EBIT growth 1Y909.47%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year82.88%
EBIT Next 3Y45.95%
EBIT Next 5Y33.08%
FCF growth 1Y5019.61%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y3766.18%
OCF growth 3Y85.41%
OCF growth 5Y32.05%