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SPOT

Spotify TechnologyNYSE:SPOT Stock Report

Market Cap

US$44.6b

7D

-2.0%

1Y

-1.5%

Updated

27 Sep, 2021

Data

Company Financials +
SPOT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

SPOT Overview

Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide.

Spotify Technology Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Spotify Technology
Historical stock prices
Current Share PriceUS$232.94
52 Week HighUS$201.68
52 Week LowUS$387.44
Beta1.51
1 Month Change3.06%
3 Month Change-14.63%
1 Year Change-1.47%
3 Year Change29.12%
5 Year Changen/a
Change since IPO56.33%

Recent News & Updates

Sep 17
Why Spotify Technology S.A. (NYSE:SPOT) Could Be Worth Watching

Why Spotify Technology S.A. (NYSE:SPOT) Could Be Worth Watching

Today we're going to take a look at the well-established Spotify Technology S.A. ( NYSE:SPOT ). The company's stock saw...

Aug 30
Spotify (NYSE:SPOT) has an Effective Ownership Structure, but there are Reasons Why Investors may not be Jumping In

Spotify (NYSE:SPOT) has an Effective Ownership Structure, but there are Reasons Why Investors may not be Jumping In

Every investor in Spotify Technology S.A. (NYSE:SPOT) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. We will also take a look at Spotify's growth opportunities and see if there is something that is reaching the interest of specific shareholder groups.

Aug 29

Spotify's Irreplaceable Business Model Should Be Music To All Investors' Ears

Spotify continues to dominate and exploit the music and podcast industry's most profitable age demographic. Improving innovations and new opportunities keeps the long-term future bright. Management has worked on repairing and restoring their rocky relationship with artists. At current levels, the stock is the cheapest growth investors can find in a bubbled-up tech sector.

Shareholder Returns

SPOTUS EntertainmentUS Market
7D-2.0%1.5%2.0%
1Y-1.5%25.9%32.8%

Return vs Industry: SPOT underperformed the US Entertainment industry which returned 25.9% over the past year.

Return vs Market: SPOT underperformed the US Market which returned 32.8% over the past year.

Price Volatility

Is SPOT's price volatile compared to industry and market?
SPOT volatility
SPOT Beta1.51
Industry Beta1.05
Market Beta1

Stable Share Price: SPOT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SPOT's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20065,584Daniel Ekhttps://www.spotify.com

Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. It operates in two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.

Spotify Technology Fundamentals Summary

How do Spotify Technology's earnings and revenue compare to its market cap?
SPOT fundamental statistics
Market Cap€38.09b
Earnings (TTM)-€223.00m
Revenue (TTM)€8.62b

4.4x

P/S Ratio

-170.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPOT income statement (TTM)
Revenue€8.62b
Cost of Revenue€6.35b
Gross Profit€2.28b
Expenses€2.50b
Earnings-€223.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.17
Gross Margin26.39%
Net Profit Margin-2.59%
Debt/Equity Ratio44.4%

How did SPOT perform over the long term?

See historical performance and comparison

Valuation

Is Spotify Technology undervalued compared to its fair value and its price relative to the market?

22.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPOT ($232.94) is trading below our estimate of fair value ($301.51)

Significantly Below Fair Value: SPOT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SPOT is unprofitable, so we can't compare its PE Ratio to the US Entertainment industry average.

PE vs Market: SPOT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPOT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPOT is overvalued based on its PB Ratio (14.1x) compared to the US Entertainment industry average (4.2x).


Future Growth

How is Spotify Technology forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

65.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPOT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SPOT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SPOT's is expected to become profitable in the next 3 years.

Revenue vs Market: SPOT's revenue (15.3% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SPOT's revenue (15.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPOT's Return on Equity is forecast to be low in 3 years time (1.3%).


Past Performance

How has Spotify Technology performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPOT is currently unprofitable.

Growing Profit Margin: SPOT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPOT is unprofitable, but has reduced losses over the past 5 years at a rate of 30.3% per year.

Accelerating Growth: Unable to compare SPOT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPOT is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (10.8%).


Return on Equity

High ROE: SPOT has a negative Return on Equity (-8.26%), as it is currently unprofitable.


Financial Health

How is Spotify Technology's financial position?


Financial Position Analysis

Short Term Liabilities: SPOT's short term assets (€3.8B) exceed its short term liabilities (€3.0B).

Long Term Liabilities: SPOT's short term assets (€3.8B) exceed its long term liabilities (€1.8B).


Debt to Equity History and Analysis

Debt Level: SPOT's debt to equity ratio (44.4%) is considered high.

Reducing Debt: SPOT had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


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 SPOT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SPOT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 25% per year.


Dividend

What is Spotify Technology current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SPOT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SPOT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SPOT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPOT'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 SPOT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Daniel Ek (38 yo)

no data

Tenure

€400,848

Compensation

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 ($USD469.05K) is below average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Daniel's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SPOT's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: SPOT's board of directors are considered experienced (4.3 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Spotify Technology S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Spotify Technology S.A.
  • Ticker: SPOT
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: US$44.574b
  • Shares outstanding: 191.36m
  • Website: https://www.spotify.com

Number of Employees


Location

  • Spotify Technology S.A.
  • 42-44, avenue de la Gare
  • Luxembourg
  • 1610
  • Luxembourg

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:06
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.