Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide.
Spotify Technology Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$232.94|
|52 Week High||US$201.68|
|52 Week Low||US$387.44|
|1 Month Change||3.06%|
|3 Month Change||-14.63%|
|1 Year Change||-1.47%|
|3 Year Change||29.12%|
|5 Year Change||n/a|
|Change since IPO||56.33%|
Recent News & Updates
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...
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.
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.
|SPOT||US Entertainment||US Market|
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.
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
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
|SPOT fundamental statistics|
Is SPOT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SPOT income statement (TTM)|
|Cost of Revenue||€6.35b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||-1.17|
|Net Profit Margin||-2.59%|
How did SPOT perform over the long term?See historical performance and comparison
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: 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).
How is Spotify Technology forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
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%).
How has Spotify Technology performed over the past 5 years?
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.
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.
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.
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Daniel Ek (38 yo)
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.
Experienced Management: SPOT's management team is considered experienced (2.6 years average tenure).
Experienced Board: SPOT's board of directors are considered experienced (4.3 years average tenure).
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 employee growth, exchange listings and data sources
- 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
- Spotify Technology S.A.
- 42-44, avenue de la Gare
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/27 23:06|
|End of Day Share Price||2021/09/27 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.