SPOK HOLDINGS INC (SPOK) Stock Fundamental Analysis
USA - NASDAQ:SPOK - US84863T1060 - Common Stock
17.47 USD
+0.12 (+0.69%)
17.47 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SPOK. SPOK was compared to 22 industry peers in the Wireless Telecommunication Services industry. While SPOK has a great health rating, its profitability is only average at the moment. SPOK is valued expensive and it does not seem to be growing. 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.
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.
SPOK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPOK has a Return On Assets of 8.17%. This is amongst the best in the industry. SPOK outperforms 100.00% of its industry peers.
The Return On Equity of SPOK (11.30%) is better than 63.64% of its industry peers.
SPOK has a Return On Invested Capital of 9.50%. This is amongst the best in the industry. SPOK outperforms 86.36% 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 6.09%.
The last Return On Invested Capital (9.50%) for SPOK is above the 3 year average (6.76%), which is a sign of increasing profitability.
| 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 is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
With a decent Operating Margin value of 15.22%, SPOK is doing good in the industry, outperforming 68.18% of the companies in the same industry.
SPOK has a better Gross Margin (63.60%) than 77.27% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SPOK is 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.
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
An Altman-Z score of 5.13 indicates that SPOK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.13, SPOK belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 | 5.13 |
ROIC/WACC1.09
WACC8.68%
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.
SPOK has a Current ratio of 1.24. This is comparable to the rest of the industry: SPOK outperforms 54.55% of its industry peers.
A Quick Ratio of 1.24 indicates that SPOK should not have too much problems paying its short term obligations.
SPOK has a Quick ratio (1.24) which is in line with its industry peers.
| 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.
SPOK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.00% yearly.
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 5.66% 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 1.23% yearly.
EPS Next Y18.54%
EPS Next 2Y5.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.91%
Revenue Next 2Y1.23%
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
A Price/Earnings ratio of 21.05 indicates a rather expensive valuation of SPOK.
Based on the Price/Earnings ratio, SPOK is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
SPOK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.15, SPOK is valued on the expensive side.
SPOK's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SPOK is more expensive than 63.64% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SPOK to the average of the S&P500 Index (22.70), we can say SPOK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 21.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPOK indicates a slightly more expensive valuation: SPOK is more expensive than 68.18% of the companies listed in the same industry.
SPOK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.21 | ||
| EV/EBITDA | 13.5 |
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)1.14
PEG (5Y)N/A
EPS Next 2Y5.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.08%, SPOK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.28, SPOK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, SPOK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.08% |
5.2 History
The dividend of SPOK is nicely growing with an annual growth rate of 20.81%!
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 2Y5.66%
EPS Next 3YN/A
17.47
+0.12 (+0.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.18%
Inst Owner Change112.17%
Ins Owners2.14%
Ins Owner Change-4.01%
Market Cap359.71M
Analysts82.86
Price Target19.89 (13.85%)
Short Float %1.62%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.08% |
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)0%
PT rev (3m)2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)4.88%
EPS NY rev (3m)4.88%
Revenue NQ rev (1m)2.28%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)3.12%
Revenue NY rev (3m)3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.05 | ||
| Fwd PE | 21.15 | ||
| P/S | 2.56 | ||
| P/FCF | 14.21 | ||
| P/OCF | 12.49 | ||
| P/B | 2.38 | ||
| P/tB | 6.95 | ||
| EV/EBITDA | 13.5 |
EPS(TTM)0.83
EY4.75%
EPS(NY)0.83
Fwd EY4.73%
FCF(TTM)1.23
FCFY7.04%
OCF(TTM)1.4
OCFY8%
SpS6.84
BVpS7.33
TBVpS2.51
PEG (NY)1.14
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 | 5.13 |
F-Score6
WACC8.68%
ROIC/WACC1.09
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 Y18.54%
EPS Next 2Y5.66%
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 Year1.91%
Revenue Next 2Y1.23%
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%