SPOK HOLDINGS INC (SPOK)
US84863T1060 - Common Stock
We assign a fundamental rating of 6 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 has a correct valuation and a medium growth rate. SPOK also has an excellent dividend rating. These ratings would make SPOK suitable 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
With an excellent Return On Assets value of 6.88%, SPOK belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
SPOK has a Return On Equity (9.57%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 8.50%, SPOK is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 9.57% | ||
| ROIC | 8.5% |
ROA(3y)2.3%
ROA(5y)-2.48%
ROE(3y)3.17%
ROE(5y)-3.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SPOK has a Profit Margin of 11.27%. This is in the better half of the industry: SPOK outperforms 71.43% of its industry peers.
The Operating Margin of SPOK (15.65%) is better than 71.43% of its industry peers.
In the last couple of years the Operating Margin of SPOK has grown nicely.
SPOK has a better Gross Margin (64.13%) than 76.19% of its industry peers.
SPOK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.65% | ||
| PM (TTM) | 11.27% | ||
| GM | 64.13% |
OM growth 3Y116.19%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.27%
GM growth 5Y0.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPOK is destroying value.
The number of shares outstanding for SPOK has been reduced compared to 1 year ago.
Compared to 5 years ago, SPOK has more shares outstanding
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
SPOK has an Altman-Z score of 4.13. This indicates that SPOK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SPOK (4.13) is better than 90.48% 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 | 4.13 |
ROIC/WACC0.92
WACC9.22%
2.3 Liquidity
SPOK has a Current Ratio of 1.33. 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 (1.33) which is comparable to the rest of the industry.
SPOK has a Quick Ratio of 1.33. This is a normal value and indicates that SPOK is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.33, SPOK is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1620.00% over the past year.
Looking at the last year, SPOK shows a small growth in Revenue. The Revenue has grown by 3.39% in the last year.
SPOK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.89% yearly.
EPS 1Y (TTM)1620%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q0%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y-2.11%
Revenue growth 5Y-3.89%
Revenue growth Q2Q1.96%
3.2 Future
SPOK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.70% yearly.
SPOK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.33% yearly.
EPS Next Y20.98%
EPS Next 2Y13.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.48%
Revenue Next 2Y1.33%
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
The Price/Earnings ratio is 16.72, which indicates a correct valuation of SPOK.
SPOK's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SPOK to the average of the S&P500 Index (28.28), we can say SPOK is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.82, which indicates a correct valuation of SPOK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPOK is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, SPOK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 13.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPOK is valued more expensive than 80.95% of the companies 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 | 12.72 | ||
| EV/EBITDA | 9.87 |
4.3 Compensation for Growth
SPOK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SPOK has a very decent profitability rating, which may justify a higher PE ratio.
SPOK's earnings are expected to grow with 13.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y13.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SPOK has a Yearly Dividend Yield of 8.65%, which is a nice return.
Compared to an average industry Dividend Yield of 6.15, SPOK pays a better dividend. On top of this SPOK pays more dividend than 95.24% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
5.2 History
On average, the dividend of SPOK grows each year by 20.13%, 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 its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)20.13%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
SPOK pays out 163.69% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SPOK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP163.69%
EPS Next 2Y13.7%
EPS Next 3YN/A
SPOK HOLDINGS INC
NASDAQ:SPOK (5/3/2024, 7:19:26 PM)
After market: 14.14 -0.24 (-1.67%)14.38
-0.07 (-0.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap289.61M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 13.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 9.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.65% | ||
| PM (TTM) | 11.27% | ||
| GM | 64.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1620%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y20.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.39%
Revenue growth 3Y-2.11%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y