About Spotify Technology S.A.
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates in two segments, Premium and Ad-Supported. The Premium segment offers online and offline streaming access to its catalog of music and podcasts, including video, lossless music, and audiobooks in select markets through subscription offerings primarily sold directly to end users and partners. The Ad-Supported segment provides limited on-demand online access to its catalog of music and online and offline access to its catalog of podcasts on computers, tablets, mobile devices, and other smart devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is headquartered in Stockholm, Sweden.
Spotify Technology S.A. (SPOT) is a Communication Services company in the Internet Content & Information industry with a market capitalisation of $108.1B. The stock trades at 28.40x trailing earnings.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- Market cap
- $108.1B
- P/E ratio
- 28.40
- Forward P/E
- 29.36
- EPS (TTM)
- $18.51
- Revenue (TTM)
- $18.1B
- Free cash flow
- $1.5B
- Profit margin
- 18.4%
- Beta
- 1.59
- Shares outstanding
- 205.6M
Financial health: Strong8.9/10
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: 44.5% (Strong, benchmark > 15%) — Earns 44.5% 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.
- PEG ratio: 1.48 (Watch, benchmark < 1) — At 1.48, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.