About Spotify Technology S.A.
Spotify Technology S.A. (SPOT) is a Communication Services company in the Radio Broadcasting Stations industry with a market capitalisation of $115.4B. The stock trades at 40.13x trailing earnings.
- Sector
- Communication Services
- Industry
- Radio Broadcasting Stations
- Market cap
- $115.4B
- P/E ratio
- 40.13
- EPS (TTM)
- $13.77
- Revenue (TTM)
- $18.1B
- Profit margin
- 18.4%
- Shares outstanding
- 205.8M
Financial health: Strong9.4/10
7 strengths, 0 concerns. No red flags against these benchmarks.
- Debt to equity: 0.23 (Strong, benchmark < 0.5) — Debt of 0.23x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 0.0y (Strong, benchmark < 4 years) — Holds more cash than debt ($7.5B net cash).
- Current ratio: 1.72 (Strong, benchmark > 1.5) — Short-term assets cover 1.72x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 39.8% (Strong, benchmark > 15%) — Earns 39.8% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 32.8% (Watch, benchmark > 40%) — Keeps 32.8% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 18.4% (Strong, benchmark > 10%) — Turns 18.4% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $2.9B (Strong, benchmark positive) — Generated $2.9B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 13.9% (Strong, benchmark > 10%) — Revenue changed 13.9% year on year, comfortably past the > 10% mark.