SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:639 - LU1778762911 - Common Stock
486.4 EUR
+9 (+1.89%)
We assign a fundamental rating of 6 out of 10 to 639. 639 was compared to 48 industry peers in the Entertainment industry. 639 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 639 is quite expensive at the moment. It does show a decent growth rate.
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.
639 had negative earnings in 4 of the past 5 years.
In the past 5 years 639 always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 639 (9.56%) is better than 90.91% of its industry peers.
639 has a Return On Equity of 18.06%. This is in the better half of the industry: 639 outperforms 79.55% of its industry peers.
639 has a Return On Invested Capital of 19.82%. This is amongst the best in the industry. 639 outperforms 93.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 18.06% | ||
| ROIC | 19.82% |
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 8.32%, 639 is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Operating Margin, with a value of 11.68%, 639 is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Operating Margin of 639 has grown nicely.
Looking at the Gross Margin, with a value of 31.75%, 639 is doing worse than 75.00% of the companies in the same industry.
639's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.68% | ||
| PM (TTM) | 8.32% | ||
| GM | 31.75% |
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.
The number of shares outstanding for 639 has been increased compared to 1 year ago.
The number of shares outstanding for 639 has been increased compared to 5 years ago.
639 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.76 indicates that 639 is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.76, 639 belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
The Debt to FCF ratio of 639 is 0.75, which is an excellent value as it means it would take 639, only 0.75 years of fcf income to pay off all of its debts.
639 has a better Debt to FCF ratio (0.75) than 93.18% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that 639 is not too dependend on debt financing.
639 has a better Debt to Equity ratio (0.06) than 88.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.76 |
ROIC/WACC2.67
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.61 indicates that 639 should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.61, 639 belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that 639 should not have too much problems paying its short term obligations.
639 has a better Quick ratio (1.61) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.11% over the past year.
The Revenue has grown by 11.89% in the past year. This is quite good.
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)38.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%126.21%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
3.2 Future
The Earnings Per Share is expected to grow by 29.72% on average over the next years. This is a very strong growth
639 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.87% yearly.
EPS Next Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
Revenue Next 5Y11.87%
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
The Price/Earnings ratio is 85.48, which means the current valuation is very expensive for 639.
639's Price/Earnings ratio is a bit cheaper when compared to the industry. 639 is cheaper than 61.36% of the companies in the same industry.
639's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.49.
The Price/Forward Earnings ratio is 38.88, which means the current valuation is very expensive for 639.
The rest of the industry has a similar Price/Forward Earnings ratio as 639.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, 639 is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.48 | ||
| Fwd PE | 38.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 639 is valued a bit more expensive than the industry average as 61.36% of the companies are valued more cheaply.
639's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.36 | ||
| EV/EBITDA | 43.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 639 does not grow enough to justify the current Price/Earnings ratio.
639 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 639's earnings are expected to grow with 42.30% in the coming years.
PEG (NY)2.59
PEG (5Y)N/A
EPS Next 2Y50.68%
EPS Next 3Y42.3%
5. Dividend
5.1 Amount
639 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:639 (12/5/2025, 7:00:00 PM)
486.4
+9 (+1.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners67.74%
Inst Owner ChangeN/A
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap100.14B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target654 (34.46%)
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)1
Avg EPS beat(2)-29.44%
Min EPS beat(2)-121.7%
Max EPS beat(2)62.82%
EPS beat(4)1
Avg EPS beat(4)-31.07%
Min EPS beat(4)-121.7%
Max EPS beat(4)62.82%
EPS beat(8)4
Avg EPS beat(8)25.11%
EPS beat(12)5
Avg EPS beat(12)22.23%
EPS beat(16)7
Avg EPS beat(16)28.56%
Revenue beat(2)0
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-1%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)-0.75%
Revenue beat(8)0
Avg Revenue beat(8)-2.15%
Revenue beat(12)0
Avg Revenue beat(12)-2.17%
Revenue beat(16)0
Avg Revenue beat(16)-1.78%
PT rev (1m)-2.36%
PT rev (3m)1.52%
EPS NQ rev (1m)8.97%
EPS NQ rev (3m)11.2%
EPS NY rev (1m)35.44%
EPS NY rev (3m)26.56%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.54%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.48 | ||
| Fwd PE | 38.88 | ||
| P/S | 5.93 | ||
| P/FCF | 34.36 | ||
| P/OCF | 33.83 | ||
| P/B | 12.87 | ||
| P/tB | 15.02 | ||
| EV/EBITDA | 43.09 |
EPS(TTM)5.69
EY1.17%
EPS(NY)12.51
Fwd EY2.57%
FCF(TTM)14.16
FCFY2.91%
OCF(TTM)14.38
OCFY2.96%
SpS82.07
BVpS37.78
TBVpS32.39
PEG (NY)2.59
PEG (5Y)N/A
Graham Number69.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.56% | ||
| ROE | 18.06% | ||
| ROCE | 23.36% | ||
| ROIC | 19.82% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 11.68% | ||
| PM (TTM) | 8.32% | ||
| GM | 31.75% | ||
| FCFM | 17.25% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.21 | ||
| Cap/Depr | 42.06% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 50.62 | ||
| Cash Conversion | 142.24% | ||
| Profit Quality | 207.47% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 10.76 |
F-Score6
WACC7.43%
ROIC/WACC2.67
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)38.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%126.21%
EPS Next Y32.96%
EPS Next 2Y50.68%
EPS Next 3Y42.3%
EPS Next 5Y29.72%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.52%
Revenue Next 2Y11.97%
Revenue Next 3Y12.61%
Revenue Next 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year69.42%
EBIT Next 3Y44.52%
EBIT Next 5Y29.59%
FCF growth 1Y1335.96%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y1289.67%
OCF growth 3Y85.41%
OCF growth 5Y32.05%
SPOTIFY TECHNOLOGY SA / 639.DE FAQ
Can you provide the ChartMill fundamental rating for SPOTIFY TECHNOLOGY SA?
ChartMill assigns a fundamental rating of 6 / 10 to 639.DE.
What is the valuation status for 639 stock?
ChartMill assigns a valuation rating of 3 / 10 to SPOTIFY TECHNOLOGY SA (639.DE). This can be considered as Overvalued.
Can you provide the profitability details for SPOTIFY TECHNOLOGY SA?
SPOTIFY TECHNOLOGY SA (639.DE) has a profitability rating of 6 / 10.
What is the valuation of SPOTIFY TECHNOLOGY SA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SPOTIFY TECHNOLOGY SA (639.DE) is 85.48 and the Price/Book (PB) ratio is 12.87.
Can you provide the financial health for 639 stock?
The financial health rating of SPOTIFY TECHNOLOGY SA (639.DE) is 8 / 10.