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SPOTIFY TECHNOLOGY SA (SPOT) Stock Fundamental Analysis

USA - NYSE:SPOT - LU1778762911 - Common Stock

730.14 USD
-8.39 (-1.14%)
Last: 9/23/2025, 11:20:50 AM
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 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

With an excellent Return On Assets value of 5.99%, SPOT belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
SPOT's Return On Equity of 12.16% is amongst the best of the industry. SPOT outperforms 82.50% of its industry peers.
With an excellent Return On Invested Capital value of 21.90%, SPOT belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
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

With a decent Profit Margin value of 4.85%, SPOT is doing good in the industry, outperforming 73.75% of the companies in the same industry.
SPOT has a Operating Margin of 11.11%. This is in the better half of the industry: SPOT outperforms 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 31.63%. This is in the lower half of the industry: SPOT underperforms 66.25% of its industry peers.
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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SPOT is creating value.
The number of shares outstanding for SPOT has been increased compared to 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

An Altman-Z score of 12.91 indicates that SPOT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.91, SPOT belongs to the best of the industry, outperforming 95.00% 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 85.00% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that SPOT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.07, SPOT is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF 0.84
Altman-Z 12.91
ROIC/WACC2.94
WACC7.46%
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

SPOT has a Current 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.
The Current ratio of SPOT (1.47) is better than 61.25% 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 63.75% 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

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

Based on estimates for the next years, SPOT will show a very strong growth in Earnings Per Share. The EPS will grow by 28.35% on average per year.
Based on estimates for the next years, SPOT will show a quite strong growth in Revenue. The Revenue will grow by 11.53% on average per year.
EPS Next Y5.06%
EPS Next 2Y46.49%
EPS Next 3Y42.88%
EPS Next 5Y28.35%
Revenue Next Year10.32%
Revenue Next 2Y12.96%
Revenue Next 3Y13.38%
Revenue Next 5Y11.53%

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 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B
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

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 160.47, which means the current valuation is very expensive for SPOT.
Compared to the rest of the industry, the Price/Earnings ratio of SPOT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.41. SPOT is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 52.42, 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 66.25% of the companies listed in the same industry.
SPOT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.87.
Industry RankSector Rank
PE 160.47
Fwd PE 52.42
SPOT Price Earnings VS Forward Price EarningsSPOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as SPOT.
66.25% of the companies in the same industry are more expensive than SPOT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 44.99
EV/EBITDA 60.84
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.
A more expensive valuation may be justified as SPOT's earnings are expected to grow with 42.88% in the coming years.
PEG (NY)31.74
PEG (5Y)N/A
EPS Next 2Y46.49%
EPS Next 3Y42.88%

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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 (9/23/2025, 11:20:50 AM)

730.14

-8.39 (-1.14%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)07-29 2025-07-29/bmo
Earnings (Next)11-12 2025-11-12/bmo
Inst Owners69.85%
Inst Owner Change0.28%
Ins Owners16.2%
Ins Owner ChangeN/A
Market Cap149.47B
Analysts77.83
Price Target755.45 (3.47%)
Short Float %4.45%
Short Ratio3.58
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)0.54%
PT rev (3m)10.38%
EPS NQ rev (1m)-3.14%
EPS NQ rev (3m)-20.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-31.99%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-6.22%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-3.01%
Valuation
Industry RankSector Rank
PE 160.47
Fwd PE 52.42
P/S 7.64
P/FCF 44.99
P/OCF 44.58
P/B 19.14
P/tB 23
EV/EBITDA 60.84
EPS(TTM)4.55
EY0.62%
EPS(NY)13.93
Fwd EY1.91%
FCF(TTM)16.23
FCFY2.22%
OCF(TTM)16.38
OCFY2.24%
SpS95.61
BVpS38.14
TBVpS31.74
PEG (NY)31.74
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 12.91
F-Score6
WACC7.46%
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 5Y28.35%
Revenue 1Y (TTM)14.8%
Revenue growth 3Y17.47%
Revenue growth 5Y18.3%
Sales Q2Q%10.14%
Revenue Next Year10.32%
Revenue Next 2Y12.96%
Revenue Next 3Y13.38%
Revenue Next 5Y11.53%
EBIT growth 1Y225.57%
EBIT growth 3Y143.94%
EBIT growth 5YN/A
EBIT Next Year67.77%
EBIT Next 3Y44.4%
EBIT Next 5Y29.68%
FCF growth 1Y9971.43%
FCF growth 3Y102.27%
FCF growth 5Y39.14%
OCF growth 1Y6676.19%
OCF growth 3Y85.41%
OCF growth 5Y32.05%