Spotify Technology S.A. Fundamental Analysis (SIX: SPF.SW)
Spotify Technology S.A. Fundamental Analysis (SIX: SPF.SW)
Spotify Technology S.A. (SIX: SPF.SW) shows weak financial fundamentals with a PE ratio of 31.40, profit margin of 8.19%, and ROE of 15.02%. The company generates $12.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SPF.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakSPF.SW struggles to generate sufficient returns from assets.
Valuation Score
ModerateSPF.SW shows balanced valuation metrics.
Growth Score
WeakSPF.SW faces weak or negative growth trends.
Financial Health Score
ExcellentSPF.SW maintains a strong and stable balance sheet.
Profitability Score
ModerateSPF.SW maintains healthy but balanced margins.
Key Financial Metrics
Is SPF.SW Expensive or Cheap?
P/E Ratio
SPF.SW trades at 31.40 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SPF.SW's PEG of 0.33 indicates potential undervaluation.
Price to Book
The market values Spotify Technology S.A. at 3.88 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.59 times EBITDA. This signals the market has high growth expectations.
How Well Does SPF.SW Make Money?
Net Profit Margin
For every $100 in sales, Spotify Technology S.A. keeps $8.19 as profit after all expenses.
Operating Margin
Core operations generate 11.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.02 in profit for every $100 of shareholder equity.
ROA
Spotify Technology S.A. generates $7.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Spotify Technology S.A. produces operating cash flow of $2.08B, showing steady but balanced cash generation.
Free Cash Flow
Spotify Technology S.A. generates strong free cash flow of $2.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.98 in free cash annually.
FCF Yield
SPF.SW converts 6.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How SPF.SW Stacks Against Its Sector Peers
| Metric | SPF.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.40 | 19.45 | Worse (Expensive) |
| ROE | 15.02% | 581.00% | Weak |
| Net Margin | 8.19% | 492.00% | Weak |
| Debt/Equity | 0.29 | 0.89 | Strong (Low Leverage) |
| Current Ratio | 1.61 | 1.91 | Neutral |
| ROA | 7.03% | -14.00% (disorted) | Weak |
SPF.SW outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Spotify Technology S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Technology, Streaming
EPS CAGR
N/A
Industry Style: Growth, Technology, Streaming
FCF CAGR
N/A
Industry Style: Growth, Technology, Streaming