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
422.05 USD
-0.56 (-0.13%)
After Hours: 2/6/2026, 5:26:57 PM
Fundamental Rating

6

Taking everything into account, SPOT scores 6 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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.
  • In the past 5 years SPOT reported 4 times negative net income.
  • 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

  • The Return On Assets of SPOT (9.56%) is better than 87.50% of its industry peers.
  • SPOT has a better Return On Equity (18.06%) than 87.50% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 19.82%, SPOT belongs to the top of the industry, outperforming 96.25% of the companies in the same industry.
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 better Profit Margin (8.32%) than 81.25% of its industry peers.
  • The Operating Margin of SPOT (11.68%) is better than 73.75% of its industry peers.
  • In the last couple of years the Operating Margin of SPOT has grown nicely.
  • SPOT has a Gross Margin of 31.75%. This is in the lower half of the industry: SPOT underperforms 65.00% of its industry peers.
  • 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

  • SPOT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, SPOT has more shares outstanding
  • Compared to 5 years ago, SPOT has more shares outstanding
  • The debt/assets ratio for SPOT has been reduced compared to a year ago.
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.
  • Looking at the Altman-Z score, with a value of 8.32, SPOT belongs to the top of the industry, outperforming 96.25% of the companies in the same industry.
  • SPOT 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.
  • With an excellent Debt to FCF ratio value of 0.75, SPOT belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
  • A Debt/Equity ratio of 0.06 indicates that SPOT is not too dependend on debt financing.
  • The Debt to Equity ratio of SPOT (0.06) is better than 65.00% of its industry peers.
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 has a better Current ratio (1.61) than 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.
  • SPOT has a Quick ratio of 1.61. This is in the better half of the industry: SPOT outperforms 71.25% of its industry peers.
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

  • SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.11%, which is quite impressive.
  • The Revenue has grown by 11.89% in the past year. This is quite good.
  • 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

  • The Earnings Per Share is expected to grow by 29.34% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 12.46% on average over the next years. This is quite good.
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

  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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

  • Based on the Price/Earnings ratio of 62.98, the valuation of SPOT can be described as expensive.
  • SPOT's Price/Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 71.25% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, SPOT is valued quite expensively.
  • With a Price/Forward Earnings ratio of 28.67, SPOT can be considered very expensive at the moment.
  • 72.50% of the companies in the same industry are more expensive than SPOT, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.20, SPOT is valued at the same level.
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 is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, SPOT is valued a bit 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.
  • The decent profitability rating of SPOT 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

  • No dividends for SPOT!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

SPOTIFY TECHNOLOGY SA

NYSE:SPOT (2/6/2026, 5:26:57 PM)

After market: 422.05 -0.56 (-0.13%)

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.