SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
BIT:1SPOT - LU1778762911 - Common Stock
625.1 EUR
+24.1 (+4.01%)
We assign a fundamental rating of 5 out of 10 to 1SPOT. 1SPOT was compared to 42 industry peers in the Entertainment industry. While 1SPOT has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, 1SPOT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1SPOT was profitable.
In the past year 1SPOT had a positive cash flow from operations.
1SPOT had negative earnings in 4 of the past 5 years.
1SPOT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1SPOT has a better Return On Assets (5.99%) than 77.78% of its industry peers.
1SPOT has a Return On Equity of 12.16%. This is in the better half of the industry: 1SPOT outperforms 71.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.90%, 1SPOT belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 12.16% | ||
| ROIC | 21.9% |
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 4.85%, 1SPOT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Operating Margin, with a value of 11.11%, 1SPOT is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
In the last couple of years the Operating Margin of 1SPOT has grown nicely.
Looking at the Gross Margin, with a value of 31.63%, 1SPOT is doing worse than 80.00% of the companies in the same industry.
1SPOT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.11% | ||
| PM (TTM) | 4.85% | ||
| GM | 31.63% |
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), 1SPOT is creating value.
Compared to 1 year ago, 1SPOT has more shares outstanding
Compared to 5 years ago, 1SPOT has more shares outstanding
1SPOT has a better debt/assets ratio than last year.
2.2 Solvency
1SPOT has an Altman-Z score of 12.88. This indicates that 1SPOT is financially healthy and has little risk of bankruptcy at the moment.
1SPOT has a Altman-Z score of 12.88. This is amongst the best in the industry. 1SPOT outperforms 93.33% of its industry peers.
The Debt to FCF ratio of 1SPOT is 0.84, which is an excellent value as it means it would take 1SPOT, only 0.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1SPOT (0.84) is better than 88.89% 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.
With a decent Debt to Equity ratio value of 0.07, 1SPOT is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 12.88 |
ROIC/WACC2.95
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.47 indicates that 1SPOT should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.47, 1SPOT is doing good in the industry, outperforming 75.56% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that 1SPOT should not have too much problems paying its short term obligations.
1SPOT has a better Quick ratio (1.47) than 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.67% over the past year.
1SPOT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.80%.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
EPS 1Y (TTM)28.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-131.58%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
3.2 Future
Based on estimates for the next years, 1SPOT will show a very strong growth in Earnings Per Share. The EPS will grow by 28.32% on average per year.
Based on estimates for the next years, 1SPOT will show a quite strong growth in Revenue. The Revenue will grow by 11.51% on average per year.
EPS Next Y5.06%
EPS Next 2Y46.49%
EPS Next 3Y42.88%
EPS Next 5Y28.32%
Revenue Next Year10.31%
Revenue Next 2Y12.98%
Revenue Next 3Y13.41%
Revenue Next 5Y11.51%
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 161.94 indicates a quite expensive valuation of 1SPOT.
Compared to the rest of the industry, the Price/Earnings ratio of 1SPOT is on the same level as its industry peers.
1SPOT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.90.
With a Price/Forward Earnings ratio of 52.87, 1SPOT can be considered very expensive at the moment.
1SPOT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.52. 1SPOT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.94 | ||
| Fwd PE | 52.87 |
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 62.22% of the companies in the same industry.
1SPOT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.38 | ||
| EV/EBITDA | 60.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1SPOT does not grow enough to justify the current Price/Earnings ratio.
1SPOT's earnings are expected to grow with 42.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)32.04
PEG (5Y)N/A
EPS Next 2Y46.49%
EPS Next 3Y42.88%
5. Dividend
5.1 Amount
1SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1SPOT (8/19/2025, 7:00:00 PM)
625.1
+24.1 (+4.01%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners69.85%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap127.96B
Analysts77.78
Price Target637.23 (1.94%)
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)-87%
Min EPS beat(2)-121.7%
Max EPS beat(2)-52.29%
EPS beat(4)0
Avg EPS beat(4)-51.11%
Min EPS beat(4)-121.7%
Max EPS beat(4)-13.1%
EPS beat(8)4
Avg EPS beat(8)48.3%
EPS beat(12)4
Avg EPS beat(12)15.65%
EPS beat(16)6
Avg EPS beat(16)16.82%
Revenue beat(2)0
Avg Revenue beat(2)-2.94%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.36%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.16%
Revenue beat(12)0
Avg Revenue beat(12)-2.2%
Revenue beat(16)1
Avg Revenue beat(16)-1.7%
PT rev (1m)-0.52%
PT rev (3m)8.92%
EPS NQ rev (1m)-6.45%
EPS NQ rev (3m)-28.97%
EPS NY rev (1m)-31.48%
EPS NY rev (3m)-34.07%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-8.58%
Revenue NY rev (1m)-3.02%
Revenue NY rev (3m)-2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 161.94 | ||
| Fwd PE | 52.87 | ||
| P/S | 7.7 | ||
| P/FCF | 45.38 | ||
| P/OCF | 44.96 | ||
| P/B | 19.31 | ||
| P/tB | 23.2 | ||
| EV/EBITDA | 60.65 |
EPS(TTM)3.86
EY0.62%
EPS(NY)11.82
Fwd EY1.89%
FCF(TTM)13.78
FCFY2.2%
OCF(TTM)13.9
OCFY2.22%
SpS81.15
BVpS32.37
TBVpS26.95
PEG (NY)32.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 12.16% | ||
| ROCE | 25.81% | ||
| ROIC | 21.9% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 11.11% | ||
| PM (TTM) | 4.85% | ||
| GM | 31.63% | ||
| FCFM | 16.97% |
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-Score6
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 23.01% | ||
| Cap/Sales | 0.16% | ||
| Interest Coverage | 49.89 | ||
| Cash Conversion | 145.28% | ||
| Profit Quality | 349.88% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 12.88 |
F-Score6
WACC7.43%
ROIC/WACC2.95
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)28.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-131.58%
EPS Next Y5.06%
EPS Next 2Y46.49%
EPS Next 3Y42.88%
EPS Next 5Y28.32%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
Revenue Next Year10.31%
Revenue Next 2Y12.98%
Revenue Next 3Y13.41%
Revenue Next 5Y11.51%
EBIT growth 1Y225.57%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year67.77%
EBIT Next 3Y44.4%
EBIT Next 5Y29.65%
FCF growth 1Y9971.43%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y6676.19%
OCF growth 3Y85.41%
OCF growth 5Y32.05%