Spotify Technology S.A., together with its subsidiaries, provides music streaming services worldwide.
Excellent balance sheet with reasonable growth potential.
Share Price & News
How has Spotify Technology's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 639 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 639 underperformed the German Entertainment industry which returned 38.3% over the past year.
Return vs Market: 639 underperformed the German Market which returned 15% over the past year.
Price Volatility Vs. Market
How volatile is Spotify Technology's share price compared to the market and industry in the last 5 years?
Simply Wall St News
Is Spotify Technology undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 639 (€131.1) is trading below our estimate of fair value (€151.81)
Significantly Below Fair Value: 639 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 639 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.
PE vs Market: 639 is unprofitable, so we can't compare its PE Ratio to the German market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 639's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 639 is overvalued based on its PB Ratio (11.8x) compared to the DE Entertainment industry average (1.5x).
How is Spotify Technology forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 639 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).
Earnings vs Market: 639 is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: 639's is expected to become profitable in the next 3 years.
Revenue vs Market: 639's revenue (16.4% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: 639's revenue (16.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 639's Return on Equity is forecast to be low in 3 years time (6.6%).
How has Spotify Technology performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 639 is currently unprofitable.
Growing Profit Margin: 639 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: 639 is unprofitable, but has reduced losses over the past 5 years at a rate of 30.8% per year.
Accelerating Growth: Unable to compare 639's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: 639 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (29.1%).
Return on Equity
High ROE: 639 has a negative Return on Equity (-9.13%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
How is Spotify Technology's financial position?
Financial Position Analysis
Short Term Liabilities: 639's short term assets (€2.2B) do not cover its short term liabilities (€2.4B).
Long Term Liabilities: 639's short term assets (€2.2B) exceed its long term liabilities (€646.0M).
Debt to Equity History and Analysis
Debt Level: 639 is debt free.
Reducing Debt: 639 had no debt 5 years ago.
Inventory Level: 639 has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if 639's debt is covered by short term assets.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable 639 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: 639 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 55.2% per year.
What is Spotify Technology's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate 639's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 639's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 639's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 639's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 639's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Daniel Ek (35yo)
Mr. Daniel G. Ek founded Spotify Limited in 2006 and serves as its Chief Executive Officer. Mr. Ek is Founder, Chief Executive Officer and Chairman of Spotify Technology S.A. He has been a Director of Spot ...
CEO Compensation Analysis
Compensation vs Market: Daniel's total compensation ($USD336.46K) is below average for companies of similar size in the German market ($USD4.37M).
Compensation vs Earnings: Daniel's compensation has increased whilst the company is unprofitable.
|Co-Founder & Director||11.6yrs||€390.18k||0.0015% €359.8k|
|Chief Premium Business Officer||0yrs||€6.43m||0.00089% €213.5k|
|Chief Research & Development Officer||0yrs||€7.12m||0.0032% €770.0k|
|Chief Content Officer||1.7yrs||€7.48m||no data|
|Chief Financial Officer||0.08yrs||no data||no data|
|Controller & Chief Accounting Officer||0.4yrs||no data||no data|
|Head of Global Affairs & Chief Legal Officer||4.1yrs||no data||no data|
|Chief Human Resources Officer||0yrs||no data||0.0078% €1.9m|
|Global Head of Markets||0yrs||no data||no data|
Experienced Management: 639's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
|Co-Founder & Director||11.6yrs||€390.18k||0.0015% €359.8k|
|Independent Director||4.7yrs||€367.76k||no data|
|Independent Director||2.7yrs||€364.29k||0.017% €4.2m|
|Independent Director||2.7yrs||€377.60k||0.049% €11.8m|
|Independent Director||2.7yrs||€327.05k||0.00063% €151.1k|
|Independent Director||2.7yrs||€352.56k||0.00063% €151.1k|
|Independent Director||3.4yrs||€367.76k||0.0036% €868.4k|
|Independent Director||2.2yrs||€341.33k||0.00046% €110.3k|
Experienced Board: 639's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.
Spotify Technology S.A.'s company bio, employee growth, exchange listings and data sources
- Name: Spotify Technology S.A.
- Ticker: 639
- Exchange: DB
- Founded: 2006
- Industry: Movies and Entertainment
- Sector: Media
- Market Cap: US$25.990b
- Listing Market Cap: US$23.989b
- Shares outstanding: 184.33m
- Website: https://www.spotify.com
Number of Employees
- Spotify Technology S.A.
- 42-44, avenue de la Gare
- Luxembourg City
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SPF||SWX (SIX Swiss Exchange)||Yes||Common Shares||CH||CHF||Apr 2018|
|0SPT||LSE (London Stock Exchange)||Yes||Common Shares||GB||EUR||Apr 2018|
|SPOT||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Apr 2018|
|639||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Apr 2018|
|639||XTRA (XETRA Trading Platform)||Yes||Common Shares||DE||EUR||Apr 2018|
|SPOT N||BMV (Bolsa Mexicana de Valores)||Yes||Common Shares||MX||MXN||Apr 2018|
|S1PO34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REPR 1 COM||BR||BRL||Jan 2020|
Spotify Technology S.A., together with its subsidiaries, provides music streaming services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers commercial-free music services to subscribers comprising unlimited online and offline high-quality streaming access to its catalog. The Ad-Supported segment provides ad-supported users with limited on-demand online access to its catalog. As of December 31, 2018, the company’s platform included 207 million monthly active users and 96 million premium subscribers in approximately 78 countries and territories. Spotify Technology S.A. was founded in 2006 and is based in Luxembourg City, Luxembourg.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/17 23:01|
|End of Day Share Price||2020/02/17 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.