SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis
USA - NYSE:SPOT - LU1778762911 - Common Stock
616.91 USD
-1.29 (-0.21%)
617.21 USD
+0.3 (+0.05%)
Taking everything into account, SPOT scores 6 out of 10 in our fundamental rating. SPOT was compared to 79 industry peers in the Entertainment industry. While SPOT has a great health rating, its profitability is only average at the moment. 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
With an excellent Return On Assets value of 9.56%, SPOT belongs to the best of the industry, outperforming 86.08% of the companies in the same industry.
With an excellent Return On Equity value of 18.06%, SPOT belongs to the best of the industry, outperforming 84.81% of the companies in the same industry.
SPOT's Return On Invested Capital of 19.82% is amongst the best of the industry. SPOT outperforms 96.20% of its industry peers.
| 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
SPOT has a Profit Margin of 8.32%. This is in the better half of the industry: SPOT outperforms 78.48% of its industry peers.
SPOT's Operating Margin of 11.68% is fine compared to the rest of the industry. SPOT outperforms 78.48% of its industry peers.
In the last couple of years the Operating Margin of SPOT has grown nicely.
SPOT has a worse Gross Margin (31.75%) than 60.76% of its industry peers.
SPOT's Gross Margin has improved in the last couple of years.
| 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
SPOT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SPOT has been increased compared to 1 year ago.
The number of shares outstanding for SPOT has been increased compared to 5 years ago.
SPOT has a better debt/assets ratio than last year.
2.2 Solvency
SPOT has an Altman-Z score of 11.59. This indicates that SPOT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.59, SPOT belongs to the best of the industry, outperforming 92.41% 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.
SPOT has a Debt to FCF ratio of 0.75. This is amongst the best in the industry. SPOT outperforms 83.54% of its industry peers.
SPOT has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
SPOT's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. SPOT outperforms 63.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 11.59 |
ROIC/WACC2.65
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.61 indicates that SPOT should not have too much problems paying its short term obligations.
SPOT's Current ratio of 1.61 is fine compared to the rest of the industry. SPOT outperforms 63.29% 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's Quick ratio of 1.61 is fine compared to the rest of the industry. SPOT outperforms 65.82% 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 39.31% 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)39.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.62%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%8.85%
3.2 Future
The Earnings Per Share is expected to grow by 29.24% 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 12.31% yearly.
EPS Next Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.24%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
Revenue Next 5Y12.31%
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
The Price/Earnings ratio is 93.19, which means the current valuation is very expensive for SPOT.
Compared to the rest of the industry, the Price/Earnings ratio of SPOT indicates a somewhat cheap valuation: SPOT is cheaper than 64.56% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. SPOT is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 45.58 indicates a quite expensive valuation of SPOT.
SPOT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPOT is cheaper than 67.09% of the companies in the same industry.
SPOT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.19 | ||
| Fwd PE | 45.58 |
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.
65.82% 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 | 37.56 | ||
| EV/EBITDA | 47.69 |
4.3 Compensation for Growth
SPOT has a very decent profitability rating, which may justify a higher PE ratio.
SPOT's earnings are expected to grow with 41.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y45.94%
EPS Next 3Y41.06%
5. Dividend
5.1 Amount
SPOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
616.91
-1.29 (-0.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners70.11%
Inst Owner Change-2.2%
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap126.29B
Revenue(TTM)16.90B
Net Income(TTM)1.41B
Analysts78.3
Price Target765.68 (24.12%)
Short Float %4.44%
Short Ratio4.85
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)1
Avg EPS beat(2)-28.21%
Min EPS beat(2)-121.7%
Max EPS beat(2)65.28%
EPS beat(4)1
Avg EPS beat(4)-30.45%
Min EPS beat(4)-121.7%
Max EPS beat(4)65.28%
EPS beat(8)4
Avg EPS beat(8)25.41%
EPS beat(12)5
Avg EPS beat(12)22.43%
EPS beat(16)7
Avg EPS beat(16)28.72%
Revenue beat(2)1
Avg Revenue beat(2)-1.49%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)0.6%
Revenue beat(4)1
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-3.59%
Max Revenue beat(4)0.6%
Revenue beat(8)1
Avg Revenue beat(8)-1.95%
Revenue beat(12)1
Avg Revenue beat(12)-2.04%
Revenue beat(16)1
Avg Revenue beat(16)-1.68%
PT rev (1m)1.35%
PT rev (3m)3.05%
EPS NQ rev (1m)2.02%
EPS NQ rev (3m)-3.91%
EPS NY rev (1m)-3.76%
EPS NY rev (3m)-34.81%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 93.19 | ||
| Fwd PE | 45.58 | ||
| P/S | 6.48 | ||
| P/FCF | 37.56 | ||
| P/OCF | 36.99 | ||
| P/B | 14.08 | ||
| P/tB | 16.42 | ||
| EV/EBITDA | 47.69 |
EPS(TTM)6.62
EY1.07%
EPS(NY)13.54
Fwd EY2.19%
FCF(TTM)16.42
FCFY2.66%
OCF(TTM)16.68
OCFY2.7%
SpS95.19
BVpS43.83
TBVpS37.57
PEG (NY)N/A
PEG (5Y)N/A
Graham Number80.79
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 | 11.59 |
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)39.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%129.62%
EPS Next Y-1.83%
EPS Next 2Y45.94%
EPS Next 3Y41.06%
EPS Next 5Y29.24%
Revenue 1Y (TTM)11.89%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%8.85%
Revenue Next Year9.82%
Revenue Next 2Y12.76%
Revenue Next 3Y13.25%
Revenue Next 5Y12.31%
EBIT growth 1Y99.6%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year63.74%
EBIT Next 3Y43.76%
EBIT Next 5Y30.54%
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 of SPOTIFY TECHNOLOGY SA (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 earnings growth outlook for SPOTIFY TECHNOLOGY SA?
The Earnings per Share (EPS) of SPOTIFY TECHNOLOGY SA (SPOT) is expected to decline by -1.83% in the next year.