SPIRE INC (SR)
US84857L1017 - Common Stock
SR gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 13 industry peers in the Gas Utilities industry. SR has a bad profitability rating. Also its financial health evaluation is rather negative. SR does not seem to be growing, but still is valued expensively. Finally SR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SR had positive earnings in the past year.
In the past year SR had a positive cash flow from operations.
In the past 5 years SR has always been profitable.
SR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SR's Return On Assets of 2.15% is on the low side compared to the rest of the industry. SR is outperformed by 76.92% of its industry peers.
SR has a worse Return On Equity (6.92%) than 76.92% of its industry peers.
SR has a Return On Invested Capital of 3.89%. This is in the lower half of the industry: SR underperforms 76.92% of its industry peers.
SR had an Average Return On Invested Capital over the past 3 years of 3.93%. This is below the industry average of 6.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 6.92% | ||
| ROIC | 3.89% |
ROA(3y)2.25%
ROA(5y)2%
ROE(3y)7.96%
ROE(5y)6.77%
ROIC(3y)3.93%
ROIC(5y)3.86%
1.3 Margins
The Profit Margin of SR (8.84%) is worse than 61.54% of its industry peers.
SR's Profit Margin has declined in the last couple of years.
SR has a worse Operating Margin (17.80%) than 61.54% of its industry peers.
In the last couple of years the Operating Margin of SR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 8.84% | ||
| GM | N/A |
OM growth 3Y-6.38%
OM growth 5Y0.96%
PM growth 3Y24.1%
PM growth 5Y-6.94%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
SR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SR has about the same amout of shares outstanding than it did 1 year ago.
SR has more shares outstanding than it did 5 years ago.
SR has a worse debt/assets ratio than last year.
2.2 Solvency
SR has an Altman-Z score of 0.74. This is a bad value and indicates that SR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SR (0.74) is worse than 69.23% of its industry peers.
SR has a debt to FCF ratio of 81.97. This is a negative value and a sign of low solvency as SR would need 81.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 81.97, SR is in line with its industry, outperforming 53.85% of the companies in the same industry.
SR has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
SR has a Debt to Equity ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 81.97 | ||
| Altman-Z | 0.74 |
ROIC/WACC0.7
WACC5.59%
2.3 Liquidity
A Current Ratio of 0.48 indicates that SR may have some problems paying its short term obligations.
SR has a worse Current ratio (0.48) than 76.92% of its industry peers.
SR has a Quick Ratio of 0.48. This is a bad value and indicates that SR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.35, SR is doing worse than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
SR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.08%.
The Earnings Per Share has been growing slightly by 1.23% on average over the past years.
SR shows a decrease in Revenue. In the last year, the revenue decreased by -2.27%.
Measured over the past years, SR shows a small growth in Revenue. The Revenue has been growing by 6.29% on average per year.
EPS 1Y (TTM)-4.08%
EPS 3Y2.33%
EPS 5Y1.23%
EPS Q2Q%66.67%
Revenue 1Y (TTM)-2.27%
Revenue growth 3Y12.85%
Revenue growth 5Y6.29%
Sales Q2Q%-0.96%
3.2 Future
Based on estimates for the next years, SR will show a small growth in Earnings Per Share. The EPS will grow by 6.35% on average per year.
Based on estimates for the next years, SR will show a small growth in Revenue. The Revenue will grow by 1.98% on average per year.
EPS Next Y8.01%
EPS Next 2Y7.75%
EPS Next 3Y7.49%
EPS Next 5Y6.35%
Revenue Next Year5.89%
Revenue Next 2Y3.1%
Revenue Next 3Y3.14%
Revenue Next 5Y1.98%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.39 indicates a correct valuation of SR.
Compared to the rest of the industry, the Price/Earnings ratio of SR is on the same level as its industry peers.
SR is valuated rather cheaply when we compare the Price/Earnings ratio to 29.65, which is the current average of the S&P500 Index.
SR is valuated correctly with a Price/Forward Earnings ratio of 13.94.
76.92% of the companies in the same industry are more expensive than SR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SR to the average of the S&P500 Index (21.38), we can say SR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SR.
SR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.94 | ||
| EV/EBITDA | 10.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.04
PEG (5Y)13.33
EPS Next 2Y7.75%
EPS Next 3Y7.49%
5. Dividend
5.1 Amount
SR has a Yearly Dividend Yield of 4.58%, which is a nice return.
SR's Dividend Yield is a higher than the industry average which is at 4.33.
Compared to an average S&P500 Dividend Yield of 2.26, SR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
5.2 History
The dividend of SR is nicely growing with an annual growth rate of 7.29%!
SR has paid a dividend for at least 10 years, which is a reliable track record.
As SR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.29%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
SR pays out 76.89% of its income as dividend. This is not a sustainable payout ratio.
SR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP76.89%
EPS Next 2Y7.75%
EPS Next 3Y7.49%
SPIRE INC
NYSE:SR (9/6/2024, 8:04:01 PM)
After market: 65.54 0 (0%)65.54
-0.42 (-0.64%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 13.94 | ||
| 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)2.04
PEG (5Y)13.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 6.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.8% | ||
| PM (TTM) | 8.84% | ||
| GM | N/A | ||
| 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 Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.35 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-4.08%
EPS 3Y2.33%
EPS 5Y
EPS Q2Q%
EPS Next Y8.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.27%
Revenue growth 3Y12.85%
Revenue growth 5Y
Sales 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