SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
Europe - BIT:1SPOT - LU1778762911 - Common Stock
591.5 EUR
-17.1 (-2.81%)
We assign a fundamental rating of 5 out of 10 to 1SPOT. 1SPOT was compared to 48 industry peers in the Entertainment industry. 1SPOT has an excellent financial health rating, but there are some minor concerns on its profitability. 1SPOT is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years 1SPOT reported 4 times negative net income.
Each year in the past 5 years 1SPOT had a positive operating cash flow.
1.2 Ratios
1SPOT's Return On Assets of 5.99% is fine compared to the rest of the industry. 1SPOT outperforms 75.00% of its industry peers.
1SPOT has a better Return On Equity (12.16%) than 70.83% of its industry peers.
The Return On Invested Capital of 1SPOT (21.90%) is better than 91.67% of its industry peers.
| 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 62.50% of the companies in the same industry.
1SPOT has a better Operating Margin (11.11%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of 1SPOT has grown nicely.
1SPOT's Gross Margin of 31.63% is on the low side compared to the rest of the industry. 1SPOT is outperformed by 77.08% of its industry peers.
In the last couple of years the Gross Margin of 1SPOT has grown nicely.
| 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
The number of shares outstanding for 1SPOT has been increased compared to 5 years ago.
Compared to 1 year ago, 1SPOT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.28 indicates that 1SPOT is not in any danger for bankruptcy at the moment.
1SPOT's Altman-Z score of 12.28 is amongst the best of the industry. 1SPOT outperforms 93.75% of its industry peers.
1SPOT has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
1SPOT has a better Debt to FCF ratio (0.84) than 91.67% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that 1SPOT is not too dependend on debt financing.
1SPOT has a better Debt to Equity ratio (0.07) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 12.28 |
ROIC/WACC2.94
WACC7.44%
2.3 Liquidity
1SPOT has a Current Ratio of 1.47. 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 1.47, 1SPOT belongs to the best of the industry, outperforming 83.33% 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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
1SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.67%, which is quite impressive.
The Revenue has grown by 14.80% 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)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
1SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.95% yearly.
Based on estimates for the next years, 1SPOT will show a quite strong growth in Revenue. The Revenue will grow by 12.06% on average per year.
EPS Next Y3.85%
EPS Next 2Y46.49%
EPS Next 3Y41.5%
EPS Next 5Y28.95%
Revenue Next Year9.91%
Revenue Next 2Y12.78%
Revenue Next 3Y13.26%
Revenue Next 5Y12.06%
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 153.24 indicates a quite expensive valuation of 1SPOT.
The rest of the industry has a similar Price/Earnings ratio as 1SPOT.
When comparing the Price/Earnings ratio of 1SPOT to the average of the S&P500 Index (27.90), we can say 1SPOT is valued expensively.
A Price/Forward Earnings ratio of 50.03 indicates a quite expensive valuation of 1SPOT.
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 23.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 153.24 | ||
| Fwd PE | 50.03 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than 1SPOT, based on the Enterprise Value to EBITDA ratio.
1SPOT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.94 | ||
| EV/EBITDA | 57.14 |
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 41.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)39.8
PEG (5Y)N/A
EPS Next 2Y46.49%
EPS Next 3Y41.5%
5. Dividend
5.1 Amount
No dividends for 1SPOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1SPOT (10/6/2025, 7:00:00 PM)
591.5
-17.1 (-2.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners70.11%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap121.09B
Analysts78.3
Price Target650.71 (10.01%)
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)2.11%
PT rev (3m)9.59%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)-20.39%
EPS NY rev (1m)-1.15%
EPS NY rev (3m)-32.77%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-6.2%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 153.24 | ||
| Fwd PE | 50.03 | ||
| P/S | 7.29 | ||
| P/FCF | 42.94 | ||
| P/OCF | 42.55 | ||
| P/B | 18.27 | ||
| P/tB | 21.95 | ||
| EV/EBITDA | 57.14 |
EPS(TTM)3.86
EY0.65%
EPS(NY)11.82
Fwd EY2%
FCF(TTM)13.78
FCFY2.33%
OCF(TTM)13.9
OCFY2.35%
SpS81.15
BVpS32.37
TBVpS26.95
PEG (NY)39.8
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 | 12.28 |
F-Score6
WACC7.44%
ROIC/WACC2.94
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 Y3.85%
EPS Next 2Y46.49%
EPS Next 3Y41.5%
EPS Next 5Y28.95%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
Revenue Next Year9.91%
Revenue Next 2Y12.78%
Revenue Next 3Y13.26%
Revenue Next 5Y12.06%
EBIT growth 1Y225.57%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year63.74%
EBIT Next 3Y43.76%
EBIT Next 5Y30.29%
FCF growth 1Y9971.43%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y6676.19%
OCF growth 3Y85.41%
OCF growth 5Y32.05%