Now trading at a price of $688.76, Spotify Technology has moved -2.2% so far today.
Spotify Technology returned gains of 108.6% last year, with its stock price reaching a high of $785.0 and a low of $337.13. Over the same period, the stock outperformed the S&P 500 index by 91.9%. More recently, the company's 50-day average price was $695.19. Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. Based in Luxembourg City, Luxembourg, the Large-Cap Consumer Discretionary company has 7,691 full time employees. Spotify Technology has not offered a dividend during the last year.
Generally Positive Cash Flows but Slimmer Gross Margins than the Industry Average of 36.5%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $6,764 | $7,880 | $9,668 | $11,727 | $13,247 | $15,673 |
| Gross Margins | 25% | 26% | 27% | 25% | 26% | 30% |
| Net Margins | -3% | -7% | 0% | -4% | -4% | 7% |
| Net Income (M) | -$186 | -$581 | -$34 | -$430 | -$532 | $1,138 |
| Net Interest Expense (M) | -$58 | -$416 | $155 | $289 | -$59 | -$24 |
| Diluted Shares (M) | 184 | 190 | 192 | 193 | 197 | 204 |
| Earnings Per Share | -$1.03 | -$3.1 | -$1.03 | -$2.93 | -$2.73 | $5.5 |
| EPS Growth | n/a | -200.97% | 66.77% | -184.47% | 6.83% | 301.47% |
| Avg. Price | $138.23 | $214.1 | $262.3 | $140.21 | $187.91 | $686.71 |
| P/E Ratio | -134.2 | -69.06 | -1457.22 | -62.87 | -68.83 | 121.11 |
| Free Cash Flow (M) | $573 | $259 | $361 | $46 | $680 | $2,301 |
| Current Ratio | 0.91 | 0.82 | 1.36 | 1.24 | 1.29 | 1.88 |
Spotify Technology has generally positive cash flows, a strong EPS growth trend, and a decent current ratio of 1.88. However, the firm has slimmer gross margins than its peers.
Spotify Technology's Valuation Is in Line With Its Sector Averages:
Spotify Technology has a trailing twelve month P/E ratio of 151.8, compared to an average of 20.93 for the Consumer Discretionary sector. Based on its EPS guidance of $8.91, the company has a forward P/E ratio of 78.0. Spotify Technology's PEG ratio is 8.09 on the basis of the 18.8% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. Furthermore, Spotify Technology is likely overvalued compared to the book value of its equity, since its P/B ratio of 21.39 is higher than the sector average of 2.93. The company's shares are currently trading 1089.4% below their Graham number. Ultimately, Spotify Technology's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Spotify Technology Has an Average Rating of Buy:
The 36 analysts following Spotify Technology have set target prices ranging from $488.73444 to $916.37714 per share, for an average of $744.43 with a buy rating. The company is trading -7.5% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Spotify Technology has an average amount of shares sold short because 4.4% of the company's shares are sold short. Institutions own 70.4% of the company's shares, and the insider ownership rate stands at 24.32%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 6% stake in the company is worth $8,146,908,925.
