SPOK HOLDINGS INC (SPOK) Stock Fundamental Analysis
NASDAQ:SPOK - Nasdaq - US84863T1060 - Common Stock - Currency: USD
SPOK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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. These ratings could make SPOK a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year SPOK was profitable.
In the past year SPOK had a positive cash flow from operations.
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
The Return On Assets of SPOK (8.17%) is better than 100.00% of its industry peers.
SPOK has a better Return On Equity (11.30%) than 66.67% of its industry peers.
The Return On Invested Capital of SPOK (9.50%) is better than 80.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPOK is in line with the industry average of 6.35%.
The 3 year average ROIC (6.76%) for SPOK is below the current ROIC(9.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 11.3% | ||
| ROIC | 9.5% |
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 12.12%, SPOK belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
SPOK has a Operating Margin of 15.22%. This is in the better half of the industry: SPOK outperforms 66.67% of its industry peers.
With a decent Gross Margin value of 63.60%, SPOK is doing good in the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Gross Margin of SPOK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.22% | ||
| PM (TTM) | 12.12% | ||
| GM | 63.6% |
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.
The number of shares outstanding for SPOK has been increased compared to 1 year ago.
Compared to 5 years ago, SPOK has more shares outstanding
SPOK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SPOK has an Altman-Z score of 5.29. This indicates that SPOK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SPOK (5.29) is better than 100.00% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.29 |
ROIC/WACC1.07
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.24 indicates that SPOK should not have too much problems paying its short term obligations.
SPOK's Current ratio of 1.24 is in line compared to the rest of the industry. SPOK outperforms 47.62% of its industry peers.
A Quick Ratio of 1.24 indicates that SPOK should not have too much problems paying its short term obligations.
The Quick ratio of SPOK (1.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
SPOK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.79%.
Looking at the last year, SPOK shows a small growth in Revenue. The Revenue has grown by 1.81% in the last 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)7.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%29.41%
Revenue 1Y (TTM)1.81%
Revenue growth 3Y-1.08%
Revenue growth 5Y-3%
Sales Q2Q%5.01%
3.2 Future
The Earnings Per Share is expected to grow by 4.35% on average over the next years.
SPOK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.66% yearly.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.94, SPOK is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as SPOK.
SPOK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.48.
SPOK is valuated rather expensively with a Price/Forward Earnings ratio of 22.60.
SPOK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SPOK is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.04. SPOK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 22.6 |
4.2 Price Multiples
SPOK's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SPOK is more expensive than 66.67% of the companies in the same industry.
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 | 14.8 | ||
| EV/EBITDA | 14.09 |
4.3 Compensation for Growth
SPOK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SPOK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)N/A
EPS Next 2Y4.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.91%, SPOK is a good candidate for dividend investing.
SPOK's Dividend Yield is rather good when compared to the industry average which is at 51.86. SPOK pays more dividend than 80.95% of the companies in the same industry.
SPOK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
5.2 History
On average, the dividend of SPOK grows each year by 20.81%, which is quite nice.
SPOK has been paying a dividend for at least 10 years, so it has a reliable track record.
SPOK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.81%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
SPOK pays out 158.87% 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.
DP158.87%
EPS Next 2Y4.35%
EPS Next 3YN/A
18.21
+0.12 (+0.66%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.18%
Inst Owner Change103.33%
Ins Owners2.14%
Ins Owner Change0.86%
Market Cap374.58M
Analysts82.86
Price Target19.89 (9.23%)
Short Float %0.82%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Yearly Dividend1.31
Dividend Growth(5Y)20.81%
DP158.87%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28%
Min EPS beat(2)19.83%
Max EPS beat(2)36.17%
EPS beat(4)2
Avg EPS beat(4)9.88%
Min EPS beat(4)-16.17%
Max EPS beat(4)36.17%
EPS beat(8)4
Avg EPS beat(8)6.81%
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)2.31%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)4.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-6.98%
Max Revenue beat(4)4.65%
Revenue beat(8)3
Avg Revenue beat(8)-0.46%
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)2.63%
PT rev (3m)2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.63%
EPS NY rev (1m)0%
EPS NY rev (3m)3.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 22.6 | ||
| P/S | 2.66 | ||
| P/FCF | 14.8 | ||
| P/OCF | 13.01 | ||
| P/B | 2.48 | ||
| P/tB | 7.24 | ||
| EV/EBITDA | 14.09 |
EPS(TTM)0.83
EY4.56%
EPS(NY)0.81
Fwd EY4.43%
FCF(TTM)1.23
FCFY6.76%
OCF(TTM)1.4
OCFY7.69%
SpS6.84
BVpS7.34
TBVpS2.52
PEG (NY)1.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 11.3% | ||
| ROCE | 13.12% | ||
| ROIC | 9.5% | ||
| ROICexc | 10.85% | ||
| ROICexgc | 35.41% | ||
| OM | 15.22% | ||
| PM (TTM) | 12.12% | ||
| GM | 63.6% | ||
| FCFM | 17.98% |
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-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 93.51% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.53% | ||
| Profit Quality | 148.42% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 5.29 |
F-Score6
WACC8.91%
ROIC/WACC1.07
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)7.79%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%29.41%
EPS Next Y13.03%
EPS Next 2Y4.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.81%
Revenue growth 3Y-1.08%
Revenue growth 5Y-3%
Sales Q2Q%5.01%
Revenue Next Year-1.17%
Revenue Next 2Y0.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.81%
FCF growth 3YN/A
FCF growth 5Y30.1%
OCF growth 1Y22%
OCF growth 3Y53.48%
OCF growth 5Y19.84%