SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
FRA:639 - Deutsche Boerse Ag - LU1778762911 - Common Stock - Currency: EUR
Overall 639 gets a fundamental rating of 6 out of 10. We evaluated 639 against 47 industry peers in the Entertainment industry. 639 has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, 639 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
639 had positive earnings in the past year.
639 had a positive operating cash flow in the past year.
In the past 5 years 639 reported 4 times negative net income.
639 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 639 (9.19%) is better than 89.13% of its industry peers.
639's Return On Equity of 18.66% is amongst the best of the industry. 639 outperforms 80.43% of its industry peers.
639's Return On Invested Capital of 21.54% is amongst the best of the industry. 639 outperforms 93.48% 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
The Profit Margin of 639 (7.19%) is better than 73.91% of its industry peers.
With a decent Operating Margin value of 10.51%, 639 is doing good in the industry, outperforming 71.74% of the companies in the same industry.
639's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.10%, 639 is not doing good in the industry: 80.43% of the companies in the same industry are doing better.
639's Gross Margin has improved in the last couple of years.
| 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), 639 is creating value.
Compared to 1 year ago, 639 has more shares outstanding
639 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 639 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.58 indicates that 639 is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.58, 639 belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
639 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.
The Debt to FCF ratio of 639 (0.81) is better than 95.65% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that 639 is not too dependend on debt financing.
The Debt to Equity ratio of 639 (0.07) is better than 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 12.58 |
ROIC/WACC2.84
WACC7.59%
2.3 Liquidity
A Current Ratio of 1.48 indicates that 639 should not have too much problems paying its short term obligations.
639 has a better Current ratio (1.48) than 84.78% of its industry peers.
A Quick Ratio of 1.48 indicates that 639 should not have too much problems paying its short term obligations.
639 has a better Quick ratio (1.48) than 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
639 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 4575.00%, which is quite impressive.
Looking at the last year, 639 shows a quite strong growth in Revenue. The Revenue has grown by 17.24% in the last year.
639 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, 639 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, 639 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
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
The Price/Earnings ratio is 101.85, which means the current valuation is very expensive for 639.
639's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.25, 639 is valued quite expensively.
With a Price/Forward Earnings ratio of 44.44, 639 can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 639 is on the same level as its industry peers.
639 is valuated expensively when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.85 | ||
| Fwd PE | 44.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 639 is valued a bit more expensive than 69.57% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 639.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.8 | ||
| EV/EBITDA | 59.39 |
4.3 Compensation for Growth
639's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 639 may justify a higher PE ratio.
639's earnings are expected to grow with 43.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y52.77%
EPS Next 3Y43.02%
5. Dividend
5.1 Amount
639 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:639 (5/30/2025, 7:00:00 PM)
571.4
-1.9 (-0.33%)
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 Cap116.97B
Analysts76.89
Price Target584.65 (2.32%)
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)2.82%
PT rev (3m)22.67%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)-14.92%
EPS NY rev (3m)-15.31%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)-1.64%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 101.85 | ||
| Fwd PE | 44.44 | ||
| P/S | 7.21 | ||
| P/FCF | 44.8 | ||
| P/OCF | 44.49 | ||
| P/B | 18.72 | ||
| P/tB | 23.17 | ||
| EV/EBITDA | 59.39 |
EPS(TTM)5.61
EY0.98%
EPS(NY)12.86
Fwd EY2.25%
FCF(TTM)12.75
FCFY2.23%
OCF(TTM)12.84
OCFY2.25%
SpS79.27
BVpS30.52
TBVpS24.66
PEG (NY)1.72
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 | 12.58 |
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 Year82.88%
EBIT Next 3Y45.95%
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%