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SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis

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

602.6  -1.6 (-0.26%)

Fundamental Rating

5

Taking everything into account, 639 scores 5 out of 10 in our fundamental rating. 639 was compared to 47 industry peers in the Entertainment industry. 639 has an excellent financial health rating, but there are some minor concerns on its profitability. 639 is valied quite expensively at the moment, while it does show a decent growth rate.


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.
In the past 5 years 639 reported 4 times negative net income.
In the past 5 years 639 always reported a positive cash flow from operatings.
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 has a Return On Assets of 9.19%. This is amongst the best in the industry. 639 outperforms 89.36% of its industry peers.
639 has a better Return On Equity (18.66%) than 80.85% of its industry peers.
The Return On Invested Capital of 639 (21.54%) is better than 91.49% of its industry peers.
Industry RankSector 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
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

With a decent Profit Margin value of 7.19%, 639 is doing good in the industry, outperforming 72.34% of the companies in the same industry.
639's Operating Margin of 10.51% is fine compared to the rest of the industry. 639 outperforms 70.21% of its industry peers.
639's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 31.10%, 639 is doing worse than 76.60% of the companies in the same industry.
In the last couple of years the Gross Margin of 639 has grown nicely.
Industry RankSector 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%
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

639 has an Altman-Z score of 13.18. This indicates that 639 is financially healthy and has little risk of bankruptcy at the moment.
639 has a Altman-Z score of 13.18. This is amongst the best in the industry. 639 outperforms 93.62% of its industry peers.
The Debt to FCF ratio of 639 is 0.81, which is an excellent value as it means it would take 639, only 0.81 years of fcf income to pay off all of its debts.
639's Debt to FCF ratio of 0.81 is amongst the best of the industry. 639 outperforms 89.36% of its industry peers.
639 has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
639 has a Debt to Equity ratio of 0.07. This is amongst the best in the industry. 639 outperforms 80.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.81
Altman-Z 13.18
ROIC/WACC2.89
WACC7.44%
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 1.48. This is a normal value and indicates that 639 is financially healthy and should not expect problems in meeting its short term obligations.
639's Current ratio of 1.48 is fine compared to the rest of the industry. 639 outperforms 78.72% of its industry peers.
639 has a Quick Ratio of 1.48. This is a normal value and indicates that 639 is financially healthy and should not expect problems in meeting its short term obligations.
639 has a Quick ratio of 1.48. This is in the better half of the industry: 639 outperforms 78.72% of its industry peers.
Industry RankSector Rank
Current Ratio 1.48
Quick Ratio 1.48
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

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.
639 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.24%.
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)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 27.60% 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 12.54% on average per year.
EPS Next Y53.32%
EPS Next 2Y51.94%
EPS Next 3Y44.11%
EPS Next 5Y27.6%
Revenue Next Year14.15%
Revenue Next 2Y15.06%
Revenue Next 3Y14.43%
Revenue Next 5Y12.54%

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.
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

A Price/Earnings ratio of 107.42 indicates a quite expensive valuation of 639.
Based on the Price/Earnings ratio, 639 is valued a bit cheaper than the industry average as 61.70% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.48. 639 is valued rather expensively when compared to this.
639 is valuated quite expensively with a Price/Forward Earnings ratio of 47.37.
639's Price/Forward Earnings ratio is in line with the industry average.
639 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 107.42
Fwd PE 47.37
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

Based on the Enterprise Value to EBITDA ratio, 639 is valued a bit more expensive than the industry average as 63.83% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 639 is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 47.25
EV/EBITDA 62.89
639.DE Per share data639.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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)2.01
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 (7/16/2025, 7:00:00 PM)

602.6

-1.6 (-0.26%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)04-29 2025-04-29/bmo
Earnings (Next)07-29 2025-07-29/bmo
Inst Owners69.05%
Inst Owner ChangeN/A
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap123.36B
Analysts75.56
Price Target595.01 (-1.26%)
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)-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)4%
PT rev (3m)0.42%
EPS NQ rev (1m)-5.21%
EPS NQ rev (3m)-10.63%
EPS NY rev (1m)-3.78%
EPS NY rev (3m)-18.19%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)-1.44%
Valuation
Industry RankSector Rank
PE 107.42
Fwd PE 47.37
P/S 7.6
P/FCF 47.25
P/OCF 46.92
P/B 19.75
P/tB 24.44
EV/EBITDA 62.89
EPS(TTM)5.61
EY0.93%
EPS(NY)12.72
Fwd EY2.11%
FCF(TTM)12.75
FCFY2.12%
OCF(TTM)12.84
OCFY2.13%
SpS79.27
BVpS30.52
TBVpS24.66
PEG (NY)2.01
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 13.18
F-Score7
WACC7.44%
ROIC/WACC2.89
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 Y53.32%
EPS Next 2Y51.94%
EPS Next 3Y44.11%
EPS Next 5Y27.6%
Revenue 1Y (TTM)17.24%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%15.24%
Revenue Next Year14.15%
Revenue Next 2Y15.06%
Revenue Next 3Y14.43%
Revenue Next 5Y12.54%
EBIT growth 1Y909.47%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year82.88%
EBIT Next 3Y45.95%
EBIT Next 5Y32.91%
FCF growth 1Y5019.61%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y3766.18%
OCF growth 3Y85.41%
OCF growth 5Y32.05%