Seek Returns

Spotify Technology (SPOT) Stock Analysis

Here is a fundamental analysis of Spotify Technology (SPOT), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

SPOT
GSPC
Loading price history…
Spotify Technology (SPOT) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Spotify Technology (SPOT) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Spotify Technology (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
1-Year Return-31.42%-4.70%

Risk

Drawdown

SPOT
GSPC
Loading price history…
Spotify Technology (SPOT) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Spotify Technology (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
1-Year Volatility45.36%46.11%
Beta1.550.96

Company Profile

Company profile fields for Spotify Technology (SPOT)
Profile ItemSPOT
NameSpotify Technology S.A.
Country/RegionSweden
GICS SectorCommunication Services
GICS Industry GroupMedia & Entertainment
GICS IndustryEntertainment
GICS Sub-IndustryMovies & Entertainment
Market Capitalization99.11 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateApril 3, 2018
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Spotify Technology (SPOT) trades at P/E ratio of 32.46, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

SPOT

Media & Entertainment industry group

32.46

Group distribution
Max
71.35
Q3
37.05
SPOT
32.46
Median
21.91
Q1
11.66
Min
1.74
Largest peers
SPOT
32.46
GOOGL
27.48
GOOG
27.32
NFLX
25.92
META
20.62
DIS
16.01
CMCSA
4.80
Loading chart…
Where Spotify Technology (SPOT) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Spotify Technology (SPOT) trades at 5.65 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

SPOT

Media & Entertainment industry group

5.65

Group distribution
Max
8.58
SPOT
5.65
Q3
3.91
Median
1.48
Q1
0.55
Min
0.00
Largest peers
GOOGL
10.38
GOOG
10.34
NFLX
7.21
META
6.70
SPOT
5.65
DIS
1.79
CMCSA
0.70
Loading chart…
Where Spotify Technology (SPOT) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Spotify Technology (SPOT) trades at 10.10 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

SPOT

Media & Entertainment industry group

10.10

Group distribution
Max
11.21
SPOT
10.10
Q3
5.56
Median
1.93
Q1
0.82
Min
-2.89
Largest peers
NFLX
10.87
SPOT
10.10
GOOGL
9.10
GOOG
9.06
META
5.91
DIS
1.61
CMCSA
0.99
Loading chart…
Where Spotify Technology (SPOT) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Spotify Technology (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Price-to-Earnings Ratio (TTM)32.4621.91
Price-to-Sales Ratio (TTM)5.651.48
Price-to-Book Ratio (MRQ)10.101.93
Free Cash Flow Yield0.71%7.41%

Profitability

Return on Equity (TTM)

Spotify Technology (SPOT) posts ROE of 37.99%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

SPOT

Media & Entertainment industry group

37.99%

Group distribution
Max
46.65%
SPOT
37.99%
Q3
16.35%
Median
6.52%
Q1
-4.21%
Min
-29.59%
Largest peers
NFLX
48.50%
GOOGL
38.89%
GOOG
38.89%
SPOT
37.99%
META
32.93%
CMCSA
20.92%
DIS
11.01%
Loading chart…
Where Spotify Technology (SPOT) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Spotify Technology (SPOT) keeps 15.45% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

SPOT

Media & Entertainment industry group

15.45%

Group distribution
Max
30.77%
SPOT
15.45%
Q3
10.51%
Median
3.81%
Q1
-3.12%
Min
-20.69%
Largest peers
GOOGL
37.92%
GOOG
37.92%
META
32.84%
NFLX
28.52%
SPOT
15.45%
CMCSA
15.00%
DIS
11.54%
Loading chart…
Where Spotify Technology (SPOT) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Spotify Technology (SPOT) turns 15.77% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

SPOT

Media & Entertainment industry group

15.77%

Group distribution
Max
41.37%
Q3
16.41%
SPOT
15.77%
Median
8.47%
Q1
-3.09%
Min
-26.23%
Largest peers
META
40.62%
GOOGL
36.12%
GOOG
36.12%
NFLX
32.30%
SPOT
15.77%
DIS
15.51%
CMCSA
13.15%
Loading chart…
Where Spotify Technology (SPOT) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Spotify Technology (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Return on Equity (TTM)37.99%6.52%
Return on Assets (TTM)11.64%3.34%
Net Profit Margin (TTM)15.45%3.81%
Operating Profit Margin (TTM)15.77%8.47%
Gross Profit Margin (TTM)32.32%52.29%

Financial Strength

Current Ratio (MRQ)

Spotify Technology (SPOT) has current ratio of 2.06, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

SPOT

Media & Entertainment industry group

2.06

Group distribution
Max
4.23
Q3
2.26
SPOT
2.06
Median
1.36
Q1
0.89
Min
0.31
Largest peers
META
2.35
SPOT
2.06
GOOGL
1.92
GOOG
1.92
NFLX
1.41
CMCSA
0.87
DIS
0.68
Loading chart…
Where Spotify Technology (SPOT) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Spotify Technology (SPOT) has debt-to-equity ratio of 0.06, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

SPOT

Media & Entertainment industry group

0.06

Group distribution
Max
2.46
Q3
1.30
Median
0.54
Q1
0.17
SPOT
0.06
Min
0.00
Largest peers
CMCSA
1.07
NFLX
0.54
DIS
0.41
META
0.36
GOOGL
0.20
GOOG
0.20
SPOT
0.06
Loading chart…
Where Spotify Technology (SPOT) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Spotify Technology (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Current Ratio (MRQ)2.061.36
Debt-to-Equity Ratio (MRQ)0.060.54
Net Debt / EBITDA-2.381.34

Dividends

Dividend Yield (TTM)

Spotify Technology (SPOT) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

SPOT

Media & Entertainment industry group

0.00%

Group distribution
Max
2.67%
Q3
1.17%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
5.39%
DIS
1.50%
META
0.37%
GOOG
0.25%
GOOGL
0.24%
SPOT
0.00%
NFLX
0.00%
Loading chart…
Where Spotify Technology (SPOT) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Spotify Technology (SPOT) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

SPOT

Media & Entertainment industry group

0.00%

Group distribution
Max
57.34%
Q3
24.40%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
25.88%
DIS
20.00%
META
7.64%
GOOGL
6.41%
GOOG
6.41%
SPOT
0.00%
NFLX
0.00%
Loading chart…
Where Spotify Technology (SPOT) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Spotify Technology (SPOT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: SPOTIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%