SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:SPOT • LU1778762911

422.61 USD
+9.86 (+2.39%)
At close: Feb 6, 2026
424.9 USD
+2.29 (+0.54%)
After Hours: 2/6/2026, 8:06:54 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to SPOT. SPOT was compared to 80 industry peers in the Entertainment industry. SPOT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SPOT has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • SPOT had positive earnings in the past year.
  • SPOT had a positive operating cash flow in the past year.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

1.2 Ratios

  • SPOT's Return On Assets of 9.56% is amongst the best of the industry. SPOT outperforms 87.50% of its industry peers.
  • SPOT has a better Return On Equity (18.06%) than 87.50% of its industry peers.
  • SPOT has a better Return On Invested Capital (19.82%) than 96.25% of its industry peers.
Industry RankSector 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
SPOT Yearly ROA, ROE, ROICSPOT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 -400

1.3 Margins

  • SPOT has a Profit Margin of 8.32%. This is amongst the best in the industry. SPOT outperforms 81.25% of its industry peers.
  • Looking at the Operating Margin, with a value of 11.68%, SPOT is in the better half of the industry, outperforming 73.75% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SPOT has grown nicely.
  • With a Gross Margin value of 31.75%, SPOT is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of SPOT has grown nicely.
Industry RankSector 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%
SPOT Yearly Profit, Operating, Gross MarginsSPOT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

  • SPOT has an Altman-Z score of 8.32. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 8.32, SPOT belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
  • The Debt to FCF ratio of SPOT is 0.75, which is an excellent value as it means it would take SPOT, only 0.75 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.75, SPOT belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
  • SPOT has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.06, SPOT is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.75
Altman-Z 8.32
ROIC/WACC2.6
WACC7.62%
SPOT Yearly LT Debt VS Equity VS FCFSPOT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

  • SPOT has a Current Ratio of 1.61. This is a normal value and indicates that SPOT is financially healthy and should not expect problems in meeting its short term obligations.
  • SPOT's Current ratio of 1.61 is fine compared to the rest of the industry. SPOT outperforms 70.00% of its industry peers.
  • SPOT has a Quick Ratio of 1.61. This is a normal value and indicates that SPOT is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.61, SPOT is in the better half of the industry, outperforming 71.25% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.61
Quick Ratio 1.61
SPOT Yearly Current Assets VS Current LiabilitesSPOT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 38.11% over the past year.
  • Looking at the last year, SPOT shows a quite strong growth in Revenue. The Revenue has grown by 11.89% 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)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

  • SPOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.34% yearly.
  • SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.46% yearly.
EPS Next Y34.11%
EPS Next 2Y50.58%
EPS Next 3Y42.21%
EPS Next 5Y29.34%
Revenue Next Year9.53%
Revenue Next 2Y11.7%
Revenue Next 3Y12.45%
Revenue Next 5Y12.46%

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 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 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 2033 0 10 20 30

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 62.98 indicates a quite expensive valuation of SPOT.
  • Based on the Price/Earnings ratio, SPOT is valued a bit cheaper than the industry average as 71.25% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.92, SPOT is valued quite expensively.
  • With a Price/Forward Earnings ratio of 28.67, 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 72.50% of the companies listed in the same industry.
  • SPOT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.78.
Industry RankSector Rank
PE 62.98
Fwd PE 28.67
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • SPOT's Enterprise Value to EBITDA ratio is in line with the industry average.
  • SPOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.3
EV/EBITDA 29.58
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.
  • SPOT has a very decent profitability rating, which may justify a higher PE ratio.
  • SPOT's earnings are expected to grow with 42.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)N/A
EPS Next 2Y50.58%
EPS Next 3Y42.21%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • SPOT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SPOTIFY TECHNOLOGY SA

NYSE:SPOT (2/6/2026, 8:06:54 PM)

After market: 424.9 +2.29 (+0.54%)

422.61

+9.86 (+2.39%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-04
Earnings (Next)02-10
Inst Owners67.66%
Inst Owner Change-1.5%
Ins Owners16.11%
Ins Owner ChangeN/A
Market Cap87.01B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts80
Price Target767.55 (81.62%)
Short Float %4%
Short Ratio2.93
Dividend
Industry RankSector 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)-0.52%
PT rev (3m)0.24%
EPS NQ rev (1m)2.93%
EPS NQ rev (3m)14.33%
EPS NY rev (1m)0.28%
EPS NY rev (3m)34.19%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
Industry RankSector Rank
PE 62.98
Fwd PE 28.67
P/S 4.36
P/FCF 25.3
P/OCF 24.92
P/B 9.48
P/tB 11.06
EV/EBITDA 29.58
EPS(TTM)6.71
EY1.59%
EPS(NY)14.74
Fwd EY3.49%
FCF(TTM)16.7
FCFY3.95%
OCF(TTM)16.96
OCFY4.01%
SpS96.82
BVpS44.58
TBVpS38.21
PEG (NY)1.85
PEG (5Y)N/A
Graham Number82.04
Profitability
Industry RankSector 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 RankSector 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 8.32
F-Score6
WACC7.62%
ROIC/WACC2.6
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 Y34.11%
EPS Next 2Y50.58%
EPS Next 3Y42.21%
EPS Next 5Y29.34%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%7.12%
Revenue Next Year9.53%
Revenue Next 2Y11.7%
Revenue Next 3Y12.45%
Revenue Next 5Y12.46%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year71.22%
EBIT Next 3Y44.05%
EBIT Next 5Y29.65%
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 / SPOT FAQ

What is the fundamental rating for SPOT stock?

ChartMill assigns a fundamental rating of 6 / 10 to SPOT.


What is the valuation status for SPOT stock?

ChartMill assigns a valuation rating of 4 / 10 to SPOTIFY TECHNOLOGY SA (SPOT). This can be considered as Fairly Valued.


Can you provide the profitability details for SPOTIFY TECHNOLOGY SA?

SPOTIFY TECHNOLOGY SA (SPOT) has a profitability rating of 6 / 10.


What is the financial health of SPOTIFY TECHNOLOGY SA (SPOT) stock?

The financial health rating of SPOTIFY TECHNOLOGY SA (SPOT) is 7 / 10.