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SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis

FRA:639 - Deutsche Boerse Ag - LU1778762911 - Common Stock - Currency: EUR

560.9  +6.7 (+1.21%)

Fundamental Rating

5

Overall 639 gets a fundamental rating of 5 out of 10. We evaluated 639 against 45 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.


Dividend Valuation Growth Profitability Health

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6

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.
639 had a positive operating cash flow in each of the past 5 years.
639.DE Yearly Net Income VS EBIT VS OCF VS FCF639.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

1.2 Ratios

639's Return On Assets of 5.99% is amongst the best of the industry. 639 outperforms 82.22% of its industry peers.
Looking at the Return On Equity, with a value of 12.16%, 639 is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
The Return On Invested Capital of 639 (21.90%) is better than 95.56% of its industry peers.
Industry RankSector 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
639.DE Yearly ROA, ROE, ROIC639.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 -400

1.3 Margins

639 has a Profit Margin of 4.85%. This is in the better half of the industry: 639 outperforms 71.11% of its industry peers.
The Operating Margin of 639 (11.11%) is better than 73.33% of its industry peers.
639's Operating Margin has improved in the last couple of years.
639 has a worse Gross Margin (31.63%) than 75.56% of its industry peers.
In the last couple of years the Gross Margin of 639 has grown nicely.
Industry RankSector 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%
639.DE Yearly Profit, Operating, Gross Margins639.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

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7

2. Health

2.1 Basic Checks

639 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
639 has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 639 has more shares outstanding
639 has a better debt/assets ratio than last year.
639.DE Yearly Shares Outstanding639.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
639.DE Yearly Total Debt VS Total Assets639.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 11.73 indicates that 639 is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.73, 639 belongs to the best of the industry, outperforming 91.11% of the companies in the same industry.
The Debt to FCF ratio of 639 is 0.84, which is an excellent value as it means it would take 639, only 0.84 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.84, 639 belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
639 has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.07, 639 belongs to the best of the industry, outperforming 84.44% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.84
Altman-Z 11.73
ROIC/WACC2.95
WACC7.42%
639.DE Yearly LT Debt VS Equity VS FCF639.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

639 has a Current Ratio of 1.47. This is a normal value and indicates that 639 is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.47, 639 is doing good in the industry, outperforming 77.78% of the companies in the same industry.
639 has a Quick Ratio of 1.47. This is a normal value and indicates that 639 is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.47, 639 is doing good in the industry, outperforming 77.78% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.47
Quick Ratio 1.47
639.DE Yearly Current Assets VS Current Liabilites639.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 28.67% over the past year.
The Revenue has grown by 14.80% in the past year. This is quite good.
Measured over the past years, 639 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

Based on estimates for the next years, 639 will show a very strong growth in Earnings Per Share. The EPS will grow by 27.60% on average per year.
The Revenue is expected to grow by 12.54% on average over the next years. This is quite good.
EPS Next Y53.32%
EPS Next 2Y51.94%
EPS Next 3Y44.11%
EPS Next 5Y27.6%
Revenue Next Year13.75%
Revenue Next 2Y14.87%
Revenue Next 3Y14.48%
Revenue Next 5Y12.54%

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.
639.DE Yearly Revenue VS Estimates639.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
639.DE Yearly EPS VS Estimates639.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 10 20 30

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3

4. Valuation

4.1 Price/Earnings Ratio

639 is valuated quite expensively with a Price/Earnings ratio of 145.31.
The rest of the industry has a similar Price/Earnings ratio as 639.
Compared to an average S&P500 Price/Earnings ratio of 26.99, 639 is valued quite expensively.
A Price/Forward Earnings ratio of 44.10 indicates a quite expensive valuation of 639.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 639 is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.36, 639 is valued a bit more expensive.
Industry RankSector Rank
PE 145.31
Fwd PE 44.1
639.DE Price Earnings VS Forward Price Earnings639.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

4.2 Price Multiples

639's Enterprise Value to EBITDA ratio is in line with the industry average.
639's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 40.72
EV/EBITDA 53.94
639.DE Per share data639.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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.
The decent profitability rating of 639 may justify a higher PE ratio.
A more expensive valuation may be justified as 639's earnings are expected to grow with 44.11% in the coming years.
PEG (NY)2.73
PEG (5Y)N/A
EPS Next 2Y51.94%
EPS Next 3Y44.11%

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0

5. Dividend

5.1 Amount

No dividends for 639!.
Industry RankSector Rank
Dividend Yield N/A

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SPOTIFY TECHNOLOGY SA

FRA:639 (8/6/2025, 7:00:00 PM)

560.9

+6.7 (+1.21%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)07-29 2025-07-29/bmo
Earnings (Next)11-12 2025-11-12/bmo
Inst Owners69.05%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap114.82B
Analysts75.56
Price Target631.88 (12.65%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)6.2%
PT rev (3m)11.13%
EPS NQ rev (1m)-13.04%
EPS NQ rev (3m)-24.07%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-18.14%
Revenue NQ rev (1m)-4.72%
Revenue NQ rev (3m)-7.25%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.56%
Valuation
Industry RankSector Rank
PE 145.31
Fwd PE 44.1
P/S 6.91
P/FCF 40.72
P/OCF 40.34
P/B 17.33
P/tB 20.82
EV/EBITDA 53.94
EPS(TTM)3.86
EY0.69%
EPS(NY)12.72
Fwd EY2.27%
FCF(TTM)13.78
FCFY2.46%
OCF(TTM)13.9
OCFY2.48%
SpS81.15
BVpS32.37
TBVpS26.95
PEG (NY)2.73
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 11.73
F-Score6
WACC7.42%
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 Y53.32%
EPS Next 2Y51.94%
EPS Next 3Y44.11%
EPS Next 5Y27.6%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
Revenue Next Year13.75%
Revenue Next 2Y14.87%
Revenue Next 3Y14.48%
Revenue Next 5Y12.54%
EBIT growth 1Y225.57%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year82.88%
EBIT Next 3Y45.95%
EBIT Next 5Y32.91%
FCF growth 1Y9971.43%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y6676.19%
OCF growth 3Y85.41%
OCF growth 5Y32.05%