SPOK HOLDINGS INC (SPOK) Stock Fundamental Analysis
NASDAQ:SPOK - Nasdaq - US84863T1060 - Common Stock - Currency: USD
Overall SPOK gets a fundamental rating of 5 out of 10. We evaluated SPOK against 21 industry peers in the Wireless Telecommunication Services industry. SPOK gets an excellent profitability rating and is at the same time showing great financial health properties. SPOK has a expensive valuation and it also scores bad on growth. Finally SPOK also has an excellent dividend rating. This makes SPOK very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
SPOK had positive earnings in the past year.
SPOK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SPOK reported negative net income in multiple years.
In the past 5 years SPOK always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.79%, SPOK belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
SPOK's Return On Equity of 10.50% is fine compared to the rest of the industry. SPOK outperforms 61.90% of its industry peers.
SPOK has a better Return On Invested Capital (9.21%) than 80.95% of its industry peers.
SPOK had an Average Return On Invested Capital over the past 3 years of 6.76%. This is in line with the industry average of 6.34%.
The 3 year average ROIC (6.76%) for SPOK is below the current ROIC(9.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 10.5% | ||
| ROIC | 9.21% |
ROA(3y)7.58%
ROA(5y)-0.43%
ROE(3y)10.65%
ROE(5y)-0.57%
ROIC(3y)6.76%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 11.45%, SPOK belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
Looking at the Operating Margin, with a value of 14.98%, SPOK is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SPOK has a Gross Margin of 63.13%. This is in the better half of the industry: SPOK outperforms 76.19% of its industry peers.
SPOK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.98% | ||
| PM (TTM) | 11.45% | ||
| GM | 63.13% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.99%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SPOK is still creating some value.
Compared to 1 year ago, SPOK has more shares outstanding
The number of shares outstanding for SPOK has been increased compared to 5 years ago.
There is no outstanding debt for SPOK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 5.60 indicates that SPOK is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.60, SPOK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SPOK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.6 |
ROIC/WACC1.01
WACC9.1%
2.3 Liquidity
SPOK has a Current Ratio of 1.24. This is a normal value and indicates that SPOK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.24, SPOK is in line with its industry, outperforming 52.38% of the companies in the same industry.
SPOK has a Quick Ratio of 1.24. This is a normal value and indicates that SPOK is financially healthy and should not expect problems in meeting its short term obligations.
SPOK has a Quick ratio of 1.24. This is comparable to the rest of the industry: SPOK outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
SPOK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.02%.
The Revenue has decreased by -1.22% in the past year.
Measured over the past years, SPOK shows a decrease in Revenue. The Revenue has been decreasing by -3.00% on average per year.
EPS 1Y (TTM)-6.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%19.05%
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y-1.08%
Revenue growth 5Y-3%
Sales Q2Q%3.97%
3.2 Future
The Earnings Per Share is expected to grow by 4.35% on average over the next years.
Based on estimates for the next years, SPOK will show a small growth in Revenue. The Revenue will grow by 0.66% on average per year.
EPS Next Y13.03%
EPS Next 2Y4.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.17%
Revenue Next 2Y0.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SPOK is valuated rather expensively with a Price/Earnings ratio of 22.65.
The rest of the industry has a similar Price/Earnings ratio as SPOK.
The average S&P500 Price/Earnings ratio is at 27.48. SPOK is around the same levels.
With a Price/Forward Earnings ratio of 21.93, SPOK is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPOK indicates a slightly more expensive valuation: SPOK is more expensive than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, SPOK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 21.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPOK is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPOK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.93 | ||
| EV/EBITDA | 14.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SPOK may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)N/A
EPS Next 2Y4.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.98%, SPOK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.11, SPOK pays a better dividend. On top of this SPOK pays more dividend than 90.48% of the companies listed in the same industry.
SPOK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
5.2 History
On average, the dividend of SPOK grows each year by 20.81%, which is quite nice.
SPOK has paid a dividend for at least 10 years, which is a reliable track record.
SPOK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.81%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
SPOK pays out 169.18% of its income as dividend. This is not a sustainable payout ratio.
SPOK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP169.18%
EPS Next 2Y4.35%
EPS Next 3YN/A
17.67
-0.23 (-1.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.18%
Inst Owner Change0%
Ins Owners2.1%
Ins Owner Change0.86%
Market Cap363.47M
Analysts82.86
Price Target19.38 (9.68%)
Short Float %0.81%
Short Ratio1.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
Yearly Dividend1.31
Dividend Growth(5Y)20.81%
DP169.18%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10%
Min EPS beat(2)-16.17%
Max EPS beat(2)36.17%
EPS beat(4)1
Avg EPS beat(4)1.85%
Min EPS beat(4)-16.17%
Max EPS beat(4)36.17%
EPS beat(8)3
Avg EPS beat(8)4.08%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-6.98%
Max Revenue beat(2)4.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-6.98%
Max Revenue beat(4)4.65%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 21.93 | ||
| P/S | 2.61 | ||
| P/FCF | 13.93 | ||
| P/OCF | 12.46 | ||
| P/B | 2.4 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 14.07 |
EPS(TTM)0.78
EY4.41%
EPS(NY)0.81
Fwd EY4.56%
FCF(TTM)1.27
FCFY7.18%
OCF(TTM)1.42
OCFY8.03%
SpS6.76
BVpS7.38
TBVpS2.56
PEG (NY)1.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 10.5% | ||
| ROCE | 12.72% | ||
| ROIC | 9.21% | ||
| ROICexc | 10.49% | ||
| ROICexgc | 33.78% | ||
| OM | 14.98% | ||
| PM (TTM) | 11.45% | ||
| GM | 63.13% | ||
| FCFM | 18.77% |
ROA(3y)7.58%
ROA(5y)-0.43%
ROE(3y)10.65%
ROE(5y)-0.57%
ROIC(3y)6.76%
ROIC(5y)N/A
ROICexc(3y)8.21%
ROICexc(5y)N/A
ROICexgc(3y)26.2%
ROICexgc(5y)N/A
ROCE(3y)9.33%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.99%
GM growth 5Y0.02%
F-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 78.17% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.83% | ||
| Profit Quality | 163.88% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 5.6 |
F-Score5
WACC9.1%
ROIC/WACC1.01
Cap/Depr(3y)86.31%
Cap/Depr(5y)113.32%
Cap/Sales(3y)2.54%
Cap/Sales(5y)5.64%
Profit Quality(3y)109.83%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.02%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%19.05%
EPS Next Y13.03%
EPS Next 2Y4.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.22%
Revenue growth 3Y-1.08%
Revenue growth 5Y-3%
Sales Q2Q%3.97%
Revenue Next Year-1.17%
Revenue Next 2Y0.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.95%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year49.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y153.38%
FCF growth 3YN/A
FCF growth 5Y30.1%
OCF growth 1Y108.41%
OCF growth 3Y53.48%
OCF growth 5Y19.84%