SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
NYSE:SPOT - LU1778762911 - Common Stock
696.47 USD
+1.68 (+0.24%)
696.47 USD
0 (0%)
Taking everything into account, SPOT scores 6 out of 10 in our fundamental rating. SPOT was compared to 75 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SPOT was profitable.
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.
1.2 Ratios
SPOT's Return On Assets of 5.99% is amongst the best of the industry. SPOT outperforms 86.67% of its industry peers.
SPOT's Return On Equity of 12.16% is amongst the best of the industry. SPOT outperforms 84.00% of its industry peers.
SPOT has a better Return On Invested Capital (21.90%) than 96.00% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of SPOT (4.85%) is better than 80.00% of its industry peers.
The Operating Margin of SPOT (11.11%) is better than 80.00% of its industry peers.
In the last couple of years the Operating Margin of SPOT has grown nicely.
The Gross Margin of SPOT (31.63%) is worse than 61.33% of its industry peers.
In the last couple of years the Gross Margin of SPOT has grown nicely.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for SPOT has been increased compared to 1 year ago.
SPOT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SPOT has been reduced compared to a year ago.
2.2 Solvency
SPOT has an Altman-Z score of 12.32. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.32, SPOT belongs to the best of the industry, outperforming 94.67% of the companies in the same industry.
SPOT has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
SPOT has a Debt to FCF ratio of 0.84. This is amongst the best in the industry. SPOT outperforms 86.67% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that SPOT is not too dependend on debt financing.
SPOT has a better Debt to Equity ratio (0.07) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | 12.32 |
ROIC/WACC2.94
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.47 indicates that SPOT should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.47, SPOT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SPOT has a Quick Ratio of 1.47. This is a normal value and indicates that SPOT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.47, SPOT is doing good in the industry, outperforming 69.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
SPOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.67%, which is quite impressive.
The Revenue has grown by 14.80% 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)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
The Earnings Per Share is expected to grow by 28.32% on average over the next years. This is a very strong growth
SPOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.51% yearly.
EPS Next Y5.06%
EPS Next 2Y46.49%
EPS Next 3Y42.88%
EPS Next 5Y28.32%
Revenue Next Year10.31%
Revenue Next 2Y12.98%
Revenue Next 3Y13.41%
Revenue Next 5Y11.51%
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
SPOT is valuated quite expensively with a Price/Earnings ratio of 154.09.
The rest of the industry has a similar Price/Earnings ratio as SPOT.
When comparing the Price/Earnings ratio of SPOT to the average of the S&P500 Index (27.08), we can say SPOT is valued expensively.
With a Price/Forward Earnings ratio of 50.36, SPOT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, SPOT is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, SPOT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 154.09 | ||
| Fwd PE | 50.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SPOT.
70.67% of the companies in the same industry are more expensive than SPOT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.22 | ||
| EV/EBITDA | 57.4 |
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 42.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)30.48
PEG (5Y)N/A
EPS Next 2Y46.49%
EPS Next 3Y42.88%
5. Dividend
5.1 Amount
SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
696.47
+1.68 (+0.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners69.85%
Inst Owner Change0.22%
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap142.57B
Analysts77.78
Price Target753.11 (8.13%)
Short Float %4.54%
Short Ratio3.38
Dividend
| Industry Rank | Sector 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)1.36%
PT rev (3m)14.12%
EPS NQ rev (1m)-9.54%
EPS NQ rev (3m)-26.17%
EPS NY rev (1m)-31.48%
EPS NY rev (3m)-34.07%
Revenue NQ rev (1m)-5.34%
Revenue NQ rev (3m)-8.33%
Revenue NY rev (1m)-3.36%
Revenue NY rev (3m)-2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 154.09 | ||
| Fwd PE | 50.36 | ||
| P/S | 7.34 | ||
| P/FCF | 43.22 | ||
| P/OCF | 42.83 | ||
| P/B | 18.39 | ||
| P/tB | 22.1 | ||
| EV/EBITDA | 57.4 |
EPS(TTM)4.52
EY0.65%
EPS(NY)13.83
Fwd EY1.99%
FCF(TTM)16.11
FCFY2.31%
OCF(TTM)16.26
OCFY2.33%
SpS94.93
BVpS37.87
TBVpS31.52
PEG (NY)30.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 12.32 |
F-Score6
WACC7.44%
ROIC/WACC2.94
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 Y5.06%
EPS Next 2Y46.49%
EPS Next 3Y42.88%
EPS Next 5Y28.32%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
Revenue Next Year10.31%
Revenue Next 2Y12.98%
Revenue Next 3Y13.41%
Revenue Next 5Y11.51%
EBIT growth 1Y225.57%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year67.77%
EBIT Next 3Y44.4%
EBIT Next 5Y29.65%
FCF growth 1Y9971.43%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y6676.19%
OCF growth 3Y85.41%
OCF growth 5Y32.05%