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 $127.5B. The stock trades at 47.14x trailing earnings.
- Sector
- Communication Services
- Industry
- Radio Broadcasting Stations
- Market cap
- $127.5B
- P/E ratio
- 47.14
- EPS (TTM)
- $12.97
- Revenue (TTM)
- $18.8B
- Profit margin
- 15.7%
- Shares outstanding
- 205.8M
Financial health: Strong8.3/10
7 strengths, 1 concern. Weakest points: earnings growth.
- 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: 33.8% (Strong, benchmark > 15%) — Earns 33.8% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 33.1% (Watch, benchmark > 40%) — Keeps 33.1% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 15.7% (Strong, benchmark > 10%) — Turns 15.7% 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: 16.3% (Strong, benchmark > 10%) — Revenue changed 16.3% year on year, comfortably past the > 10% mark.
- Earnings growth: -42.4% (Concern, benchmark > 10%) — Earnings changed -42.4% year on year, well short of the > 10% mark.