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SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis

NYSE:SPOT - New York Stock Exchange, Inc. - LU1778762911 - Common Stock - Currency: USD

646.98  -0.02 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to SPOT. SPOT was compared to 73 industry peers in the Entertainment industry. SPOT has an excellent financial health rating, but there are some minor concerns on its profitability. SPOT has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

SPOT had positive earnings in the past year.
In the past year SPOT had a positive cash flow from operations.
SPOT had negative earnings in 4 of the past 5 years.
Each year in the past 5 years SPOT had a positive operating cash flow.
SPOT Yearly Net Income VS EBIT VS OCF VS FCFSPOT 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

The Return On Assets of SPOT (5.99%) is better than 84.93% of its industry peers.
SPOT has a Return On Equity of 12.16%. This is amongst the best in the industry. SPOT outperforms 84.93% of its industry peers.
SPOT's Return On Invested Capital of 21.90% is amongst the best of the industry. SPOT outperforms 95.89% 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
SPOT Yearly ROA, ROE, ROICSPOT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 -400

1.3 Margins

Looking at the Profit Margin, with a value of 4.85%, SPOT is in the better half of the industry, outperforming 76.71% of the companies in the same industry.
SPOT has a better Operating Margin (11.11%) than 80.82% of its industry peers.
SPOT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.63%, SPOT is not doing good in the industry: 63.01% of the companies in the same industry are doing better.
SPOT's Gross Margin has improved in the last couple of years.
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%
SPOT Yearly Profit, Operating, Gross MarginsSPOT 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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SPOT is creating value.
SPOT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SPOT has more shares outstanding
Compared to 1 year ago, SPOT has an improved debt to assets ratio.
SPOT Yearly Shares OutstandingSPOT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
SPOT Yearly Total Debt VS Total AssetsSPOT 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

SPOT has an Altman-Z score of 11.72. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.72, SPOT belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
The Debt to FCF ratio of SPOT is 0.84, which is an excellent value as it means it would take SPOT, only 0.84 years of fcf income to pay off all of its debts.
SPOT's Debt to FCF ratio of 0.84 is amongst the best of the industry. SPOT outperforms 84.93% of its industry peers.
SPOT has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
SPOT has a Debt to Equity ratio of 0.07. This is in the better half of the industry: SPOT outperforms 61.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.84
Altman-Z 11.72
ROIC/WACC2.95
WACC7.43%
SPOT Yearly LT Debt VS Equity VS FCFSPOT 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

A Current Ratio of 1.47 indicates that SPOT should not have too much problems paying its short term obligations.
The Current ratio of SPOT (1.47) is better than 65.75% of its industry peers.
A Quick Ratio of 1.47 indicates that SPOT should not have too much problems paying its short term obligations.
SPOT has a better Quick ratio (1.47) than 68.49% of its industry peers.
Industry RankSector Rank
Current Ratio 1.47
Quick Ratio 1.47
SPOT Yearly Current Assets VS Current LiabilitesSPOT 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.
Looking at the last year, SPOT shows a quite strong growth in Revenue. The Revenue has grown by 14.80% in the last year.
SPOT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.30% yearly.
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

SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.60% yearly.
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

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.
SPOT Yearly Revenue VS EstimatesSPOT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
SPOT Yearly EPS VS EstimatesSPOT 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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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 145.06, which means the current valuation is very expensive for SPOT.
SPOT's Price/Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 61.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.03, SPOT is valued quite expensively.
With a Price/Forward Earnings ratio of 44.05, SPOT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 64.38% of the companies listed in the same industry.
SPOT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 36.28.
Industry RankSector Rank
PE 145.06
Fwd PE 44.05
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150 200 250

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPOT is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 64.38% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 40.68
EV/EBITDA 53.89
SPOT Per share dataSPOT 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 SPOT does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SPOT may justify a higher PE ratio.
A more expensive valuation may be justified as SPOT's earnings are expected to grow with 44.11% in the coming years.
PEG (NY)2.72
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 SPOT!.
Industry RankSector Rank
Dividend Yield N/A

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SPOTIFY TECHNOLOGY SA

NYSE:SPOT (8/6/2025, 10:50:03 AM)

646.98

-0.02 (0%)

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 Change-0.12%
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap132.44B
Analysts77.78
Price Target751.38 (16.14%)
Short Float %4.41%
Short Ratio3.9
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)8.56%
PT rev (3m)14.59%
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 145.06
Fwd PE 44.05
P/S 6.9
P/FCF 40.68
P/OCF 40.31
P/B 17.31
P/tB 20.8
EV/EBITDA 53.89
EPS(TTM)4.46
EY0.69%
EPS(NY)14.69
Fwd EY2.27%
FCF(TTM)15.91
FCFY2.46%
OCF(TTM)16.05
OCFY2.48%
SpS93.7
BVpS37.38
TBVpS31.11
PEG (NY)2.72
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 11.72
F-Score6
WACC7.43%
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 Year67.77%
EBIT Next 3Y44.4%
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%