A Business at a Glance
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Spotify Technology S.A.
SPOT
$99.3B
Mkt Cap
$482.66
+2.91%
Spotify Technology S.A. (SPOT) has a current P/E ratio of 45.9, compared to its historical median P/E of 69.3. The stock is currently considered Cheap based on its historical valuation range.
Spotify Technology S.A. (SPOT) has a 5-year average return on invested capital (ROIC) of 19.6%. This indicates strong capital allocation and a potential competitive advantage.
Spotify Technology S.A. (SPOT) has a market capitalization of $99.3B. It is classified as a large-cap stock.
Spotify Technology S.A. (SPOT) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.58%.
Based on historical P/E analysis, Spotify Technology S.A. (SPOT) appears cheap. The current P/E of 45.9 is 34% below its historical median of 69.3. The estimated fair value CAGR (P/E method) is 95.8%.
Spotify Technology S.A. (SPOT) operates in the Radio Broadcasting Stations industry, within the Communication Services sector.
Item 4. Information on the Company A. History and Development of the Company We are a Luxembourg public limited liability company (société anonyme), which means that shareholders’ liability is limited to their contributions to the company. The shares forming the share capital of a Luxembourg public limited liability company (société anonyme) may be publicly traded and registered on a stock exchange. Our legal name is “Spotify Technology S.A.” and our commercial name is “Spotify.” We were incorporated on December 27, 2006 as a Luxembourg private limited liability company (société à responsabilité limitée) and were transformed, on March 20, 2009, into a Luxembourg public limited liability company (société anonyme).
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 19.5B | 19.5B | 16.9B | 14.4B | 12.3B | 11.4B |
| Net Income | 2.5B | 2.5B | 1.5B | -484M | -453M | 111M |
| EPS | $12.09 | $12.09 | $6.04 | $-3.01 | $-3.13 | $-1.23 |
| Free Cash Flow | 3.3B | 3.3B | 2.5B | 732M | 48M | 326M |
| ROIC | 48.3% | 37.9% | 80.0% | -12.3% | -12.6% | 5.1% |
| Gross Margin | 32.0% | 32.0% | 30.1% | 25.6% | 25.0% | 26.8% |
| Debt/Equity | 0.18 | 0.18 | 0.28 | 0.48 | 0.47 | 0.57 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 2.5B | 2.5B | 1.5B | -484M | -694M | 111M |
| Operating Margin | 12.8% | 12.8% | 8.7% | -3.4% | -5.6% | 1.0% |
| ROE | 26.4% | 31.7% | 33.9% | -18.1% | -19.0% | 3.8% |
| Shares Outstanding | 206M | 206M | 244M | 161M | 144M | 194M |
| Metric | 2016 | 2017 | TTM | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||
| Revenue | 3.3B | 4.6B | 6.2B | 7.6B | 9.0B | 11.4B | 12.3B | 14.4B | 16.9B | 19.5B | 19.5B |
| Gross Margin | 13.6% | 20.8% | 25.7% | 25.5% | 25.6% | 26.8% | 25.0% | 25.6% | 30.1% | 32.0% | 32.0% |
| R&D | 229M | 450M | 582M | 688M | 961M | 1.1B | 1.5B | 1.9B | 1.6B | 1.6B | 1.6B |
| SG&A | 193M | 300M | 334M | 396M | 508M | 531M | 659M | 635M | 520M | 542M | 542M |
| EBIT | -385M | -430M | -51M | -82M | -336M | 111M | -694M | -484M | 1.5B | 2.5B | 2.5B |
| Op. Margin | -11.8% | -9.2% | -0.8% | -1.1% | -3.7% | 1.0% | -5.6% | -3.4% | 8.7% | 12.8% | 12.8% |
| Net Income | -385M | -430M | -51M | -208M | -667M | 111M | -453M | -484M | 1.5B | 2.5B | 2.5B |
| Net Margin | -11.8% | -9.2% | -0.8% | -2.7% | -7.4% | 1.0% | -3.7% | -3.4% | 8.7% | 12.8% | 12.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||
| ROIC | N/A | -125.5% | -2.1% | -9.1% | -20.7% | 5.1% | -12.6% | -12.3% | 80.0% | 37.9% | 48.3% |
| ROE | N/A | -158.8% | -2.1% | -9.1% | -20.7% | 3.8% | -19.0% | -18.1% | 33.9% | 31.7% | 26.4% |
| ROA | N/A | N/A | -1.0% | -3.6% | -9.2% | 1.4% | -5.8% | -5.6% | 13.4% | 16.3% | 14.6% |
| Cash Flow | |||||||||||
| Op. Cash Flow | 112M | 203M | 406M | 641M | 297M | 426M | 48M | 738M | 2.5B | 3.3B | 3.3B |
| Free Cash Flow | 82M | 163M | 258M | 641M | 297M | 326M | 48M | 732M | 2.5B | 3.3B | 3.3B |
| Owner Earnings | 76M | 151M | 381M | 641M | 297M | 315M | 48M | 619M | 2.4B | 3.2B | 3.2B |
| CapEx | 30M | 41M | 148M | 0 | 0 | 100M | 0 | 6.5M | 18M | 69M | 69M |
| Maint. CapEx | 35M | 52M | 25M | 0 | 0 | 111M | 0 | 119M | 92M | 89M | 89M |
| Growth CapEx | 0 | 0 | 123M | N/A | N/A | 0 | N/A | 0 | 0 | 0 | 0 |
| D&A | 35M | 52M | 25M | 0 | 0 | 111M | 0 | 119M | 92M | 89M | 89M |
| CapEx/OCF | N/A | N/A | 36.3% | 23.6% | 30.1% | 23.5% | 54.3% | 0.9% | 0.7% | 2.1% | 2.1% |
| Capital Allocation | |||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 91M | 485M | 0 | 105M | 2.1M | 2.2M | 2.2M | 577M | 577M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.6% |
| Stock-Based Comp | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | -1.8B | -1.4B | -2.1B | -3.5B | -4.3B | -4.3B |
| Cash & Equiv. | 834M | 542M | 1.1B | 1.2B | 1.3B | 3.2B | 2.6B | 3.4B | 5.2B | 6.0B | 6.0B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | 1.4B | 1.2B | 1.3B | 1.7B | 0 | N/A |
| Debt/Equity | N/A | N/A | 0.59 | 1.51 | 1.26 | 0.57 | 0.47 | 0.48 | 0.28 | 0.18 | 0.18 |
| Interest Coverage | -1.0 | -0.4 | -0.1 | -0.2 | -0.6 | 1.0 | -5.0 | -2.0 | 3.9 | 8.3 | 8.3 |
| Equity | -265M | 271M | 4.5B | 2.3B | 3.2B | 2.5B | 2.5B | 2.7B | 6.0B | 9.4B | 9.4B |
| Total Assets | N/A | N/A | 5.1B | 5.7B | 7.3B | 8.5B | 8.0B | 9.1B | 13.0B | 17.0B | 17.0B |
| Total Liabilities | N/A | N/A | 2.6B | 3.5B | 4.0B | 6.0B | 5.5B | 6.3B | 7.0B | 7.6B | 7.6B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | N/A | N/A | -3.0B | -3.0B | -3.8B | -3.8B | -3.8B | -4.5B | -3.3B | -942M | -942M |
| Working Capital | N/A | N/A | 117M | -233M | -613M | 1.4B | 880M | 1.3B | 4.2B | 5.0B | 5.0B |
| Current Assets | N/A | N/A | 2.7B | 2.5B | 2.7B | 5.2B | 4.6B | 5.7B | 9.1B | 11.9B | 11.9B |
| Current Liabilities | N/A | N/A | 2.5B | 2.7B | 3.3B | 3.8B | 3.7B | 4.4B | 4.8B | 6.9B | 6.9B |
| Per Share Data | |||||||||||
| EPS | -4.07 | -9.40 | -0.61 | -1.17 | -3.62 | -1.23 | -3.13 | -3.01 | 6.04 | 12.09 | 12.09 |
| Owner EPS | 0.81 | 0.83 | 2.04 | 3.61 | 1.61 | 1.62 | 0.34 | 3.85 | 9.80 | 15.70 | 15.70 |
| Book Value | -2.80 | 1.49 | 23.96 | 12.83 | 17.46 | 12.89 | 17.50 | 17.04 | 24.44 | 45.81 | 45.81 |
| Cash Flow/Share | 1.18 | 1.12 | 2.17 | 3.61 | 1.61 | 2.20 | 0.34 | 4.59 | 10.18 | 16.13 | 12.52 |
| Dividends/Share | N/A | N/A | 0.00 | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 94.6M | 181.4M | 187.2M | 177.7M | 184.5M | 194.0M | 144.4M | 160.8M | 244.3M | 205.8M | 205.8M |
| Valuation | |||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 83.0 | 55.6 | 39.9 |
| P/FCF | N/A | N/A | 81.2 | 42.5 | 196.8 | 139.3 | 228.5 | 41.5 | 45.2 | 37.0 | 30.6 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 52.7 | 38.2 |
| Price/Book | N/A | N/A | 5.6 | 7.0 | 21.9 | 21.7 | 7.2 | 12.2 | 20.5 | 14.7 | 10.5 |
| Price/Sales | N/A | N/A | 5.8 | 3.9 | 5.2 | 5.4 | 2.3 | 1.8 | 5.1 | 7.7 | 5.1 |
| FCF Yield | N/A | N/A | 1.2% | 2.2% | 0.5% | 0.7% | 0.3% | 2.4% | 2.2% | 2.7% | 3.3% |
| Market Cap | N/A | N/A | 21.3B | 29.4B | 61.3B | 46.1B | 17.2B | 30.8B | 113.3B | 122.2B | 99.3B |
| Avg. Price | N/A | N/A | 161.29 | 137.94 | 212.36 | 263.49 | 119.70 | 145.74 | 323.78 | 631.51 | 482.66 |
| Year-End Price | N/A | N/A | 112.16 | 153.17 | 317.29 | 233.78 | 76.61 | 188.75 | 456.48 | 584.35 | 482.66 |
Spotify Technology S.A. passes 3 of 9 quality checks, indicating weak fundamentals.
Spotify Technology S.A. trades at 45.9x trailing earnings, compared to its 15-year median P/E of 69.3x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 35.1x vs a median of 42.5x. The company's 5-year average ROIC is 19.6% with a gross margin of 27.9%. Total shareholder yield (buybacks) is 0.6%. At current prices, the estimated annualized return to fair value is +33.7%.
Spotify Technology S.A. (SPOT) reported annual revenue of $19.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Spotify Technology S.A. (SPOT) has a net profit margin of 12.8%. This is a healthy margin.
Spotify Technology S.A. (SPOT) generated $3.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Spotify Technology S.A. (SPOT) has a debt-to-equity ratio of 0.18. This indicates a conservatively financed balance sheet.
Spotify Technology S.A. (SPOT) reported earnings per share (EPS) of $12.09 in its most recent fiscal year.
Spotify Technology S.A. (SPOT) has a return on equity (ROE) of 31.7%. This indicates the company generates strong returns for shareholders.
Spotify Technology S.A. (SPOT) has a 5-year average gross margin of 27.9%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 10 years of financial data for Spotify Technology S.A. (SPOT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Spotify Technology S.A. (SPOT) has a book value per share of $45.81, based on its most recent annual SEC filing.