SPOTIFY TECHNOLOGY SA (639.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:639 - LU1778762911 - Common Stock
492.65 EUR
-1.45 (-0.29%)
Taking everything into account, 639 scores 5 out of 10 in our fundamental rating. 639 was compared to 44 industry peers in the Entertainment industry. While 639 has a great health rating, its profitability is only average at the moment. 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.
In the past 5 years 639 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.56%, 639 belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
With a decent Return On Equity value of 18.06%, 639 is doing good in the industry, outperforming 77.27% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.82%, 639 belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
| 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 72.73% of the companies in the same industry.
639 has a better Operating Margin (11.68%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of 639 has grown nicely.
With a Gross Margin value of 31.75%, 639 is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of 639 has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 639 is creating value.
The number of shares outstanding for 639 has been increased compared to 1 year ago.
Compared to 5 years ago, 639 has more shares outstanding
Compared to 1 year ago, 639 has an improved debt to assets ratio.
2.2 Solvency
639 has an Altman-Z score of 10.87. This indicates that 639 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.87, 639 belongs to the best of the industry, outperforming 97.73% of the companies in the same industry.
639 has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
639 has a Debt to FCF ratio of 0.75. This is amongst the best in the industry. 639 outperforms 90.91% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that 639 is not too dependend on debt financing.
The Debt to Equity ratio of 639 (0.06) is better than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 10.87 |
ROIC/WACC2.65
WACC7.48%
2.3 Liquidity
639 has a Current Ratio of 1.61. 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 Current ratio of 1.61. This is in the better half of the industry: 639 outperforms 79.55% of its industry peers.
639 has a Quick Ratio of 1.61. 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 better Quick ratio (1.61) than 79.55% 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
The Revenue is expected to grow by 11.87% on average over the next years. This is quite good.
EPS Next Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.72%
Revenue Next Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
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
A Price/Earnings ratio of 86.58 indicates a quite expensive valuation of 639.
63.64% of the companies in the same industry are more expensive than 639, based on the Price/Earnings ratio.
639's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.92.
The Price/Forward Earnings ratio is 39.25, 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 23.46, 639 is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.58 | ||
| Fwd PE | 39.25 |
4.2 Price Multiples
639's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 639 is more expensive than 61.36% of the companies in the same industry.
639's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.8 | ||
| EV/EBITDA | 43.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 42.55% in the coming years.
PEG (NY)2.57
PEG (5Y)N/A
EPS Next 2Y50.92%
EPS Next 3Y42.55%
5. Dividend
5.1 Amount
639 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:639 (12/23/2025, 7:00:00 PM)
492.65
-1.45 (-0.29%)
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 Cap101.43B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts79.57
Price Target658.04 (33.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-2.1%
PT rev (3m)2.02%
EPS NQ rev (1m)2.51%
EPS NQ rev (3m)10.98%
EPS NY rev (1m)36.24%
EPS NY rev (3m)28.78%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.58 | ||
| Fwd PE | 39.25 | ||
| P/S | 6 | ||
| P/FCF | 34.8 | ||
| P/OCF | 34.27 | ||
| P/B | 13.04 | ||
| P/tB | 15.21 | ||
| EV/EBITDA | 43.7 |
EPS(TTM)5.69
EY1.15%
EPS(NY)12.55
Fwd EY2.55%
FCF(TTM)14.16
FCFY2.87%
OCF(TTM)14.38
OCFY2.92%
SpS82.07
BVpS37.78
TBVpS32.39
PEG (NY)2.57
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 | 10.87 |
F-Score6
WACC7.48%
ROIC/WACC2.65
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 Y33.74%
EPS Next 2Y50.92%
EPS Next 3Y42.55%
EPS Next 5Y29.72%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.53%
Revenue Next 2Y11.96%
Revenue Next 3Y12.62%
Revenue Next 5Y11.87%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year70.86%
EBIT Next 3Y44.8%
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 5 / 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 86.58 and the Price/Book (PB) ratio is 13.04.
Can you provide the financial health for 639 stock?
The financial health rating of SPOTIFY TECHNOLOGY SA (639.DE) is 7 / 10.