SPOTIFY TECHNOLOGY SA (1SPOT.MI) Stock Fundamental Analysis
BIT:1SPOT - Euronext Milan - LU1778762911 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1SPOT. 1SPOT was compared to 49 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.
Each year in the past 5 years 1SPOT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1SPOT (9.19%) is better than 91.84% of its industry peers.
Looking at the Return On Equity, with a value of 18.66%, 1SPOT belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.54%, 1SPOT belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
| 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
The Profit Margin of 1SPOT (7.19%) is better than 71.43% of its industry peers.
1SPOT has a Operating Margin of 10.51%. This is in the better half of the industry: 1SPOT outperforms 75.51% of its industry peers.
1SPOT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.10%, 1SPOT is not doing good in the industry: 73.47% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1SPOT is creating value.
1SPOT has more shares outstanding than it did 1 year ago.
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
1SPOT has an Altman-Z score of 12.40. This indicates that 1SPOT is financially healthy and has little risk of bankruptcy at the moment.
1SPOT's Altman-Z score of 12.40 is amongst the best of the industry. 1SPOT outperforms 91.84% of its industry peers.
The Debt to FCF ratio of 1SPOT is 0.81, which is an excellent value as it means it would take 1SPOT, only 0.81 years of fcf income to pay off all of its debts.
1SPOT has a Debt to FCF ratio of 0.81. This is amongst the best in the industry. 1SPOT outperforms 93.88% 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 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 12.4 |
ROIC/WACC2.84
WACC7.59%
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 Current ratio of 1.48. This is amongst the best in the industry. 1SPOT outperforms 81.63% 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 has a Quick ratio of 1.48. This is amongst the best in the industry. 1SPOT outperforms 81.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 4575.00% over the past year.
Looking at the last year, 1SPOT shows a quite strong growth in Revenue. The Revenue has grown by 17.24% in the last year.
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
Based on estimates for the next years, 1SPOT will show a very strong growth in Earnings Per Share. The EPS will grow by 31.41% 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 12.71% on average per year.
EPS Next Y59.35%
EPS Next 2Y52.77%
EPS Next 3Y43.02%
EPS Next 5Y31.41%
Revenue Next Year13.66%
Revenue Next 2Y14.79%
Revenue Next 3Y14%
Revenue Next 5Y12.71%
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
1SPOT is valuated quite expensively with a Price/Earnings ratio of 100.12.
The rest of the industry has a similar Price/Earnings ratio as 1SPOT.
Compared to an average S&P500 Price/Earnings ratio of 25.91, 1SPOT is valued quite expensively.
A Price/Forward Earnings ratio of 43.68 indicates a quite expensive valuation of 1SPOT.
The rest of the industry has a similar Price/Forward Earnings ratio as 1SPOT.
When comparing the Price/Forward Earnings ratio of 1SPOT to the average of the S&P500 Index (21.85), we can say 1SPOT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.12 | ||
| Fwd PE | 43.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1SPOT is valued a bit more expensive than 63.27% 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 | 44.04 | ||
| EV/EBITDA | 58.3 |
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)1.69
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 (5/12/2025, 7:00:00 PM)
561.7
-10.7 (-1.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners67.74%
Inst Owner ChangeN/A
Ins Owners16.27%
Ins Owner ChangeN/A
Market Cap114.99B
Analysts76.89
Price Target585.06 (4.16%)
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)-1.1%
PT rev (3m)28.08%
EPS NQ rev (1m)-3.94%
EPS NQ rev (3m)-3.58%
EPS NY rev (1m)-14.92%
EPS NY rev (3m)-15.9%
Revenue NQ rev (1m)-2.32%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)-1.86%
Revenue NY rev (3m)-1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.12 | ||
| Fwd PE | 43.68 | ||
| P/S | 7.09 | ||
| P/FCF | 44.04 | ||
| P/OCF | 43.74 | ||
| P/B | 18.41 | ||
| P/tB | 22.78 | ||
| EV/EBITDA | 58.3 |
EPS(TTM)5.61
EY1%
EPS(NY)12.86
Fwd EY2.29%
FCF(TTM)12.75
FCFY2.27%
OCF(TTM)12.84
OCFY2.29%
SpS79.27
BVpS30.52
TBVpS24.66
PEG (NY)1.69
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 | 12.4 |
F-Score7
WACC7.59%
ROIC/WACC2.84
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 5Y31.41%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.24%
Revenue Next Year13.66%
Revenue Next 2Y14.79%
Revenue Next 3Y14%
Revenue Next 5Y12.71%
EBIT growth 1Y909.47%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year92.3%
EBIT Next 3Y45.72%
EBIT Next 5Y36.38%
FCF growth 1Y5019.61%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y3766.18%
OCF growth 3Y85.41%
OCF growth 5Y32.05%