SPIRE INC (SR)
US84857L1017 - Common Stock
Overall SR gets a fundamental rating of 3 out of 10. We evaluated SR 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
In the past year SR was profitable.
SR had a positive operating cash flow in the past year.
In the past 5 years SR has always been profitable.
Each year in the past 5 years SR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SR (2.07%) is worse than 61.54% of its industry peers.
The Return On Equity of SR (6.54%) is worse than 61.54% of its industry peers.
SR's Return On Invested Capital of 3.71% is on the low side compared to the rest of the industry. SR is outperformed by 76.92% of its industry peers.
SR had an Average Return On Invested Capital over the past 3 years of 3.93%. This is in line with the industry average of 5.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 6.54% | ||
| ROIC | 3.71% |
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
SR has a Profit Margin (8.48%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SR has declined.
The Operating Margin of SR (17.06%) is comparable to the rest of the industry.
SR's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.06% | ||
| PM (TTM) | 8.48% | ||
| 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.
The number of shares outstanding for SR remains at a similar level compared to 1 year ago.
The number of shares outstanding for SR has been increased compared to 5 years ago.
The debt/assets ratio for SR is higher compared to a year ago.
2.2 Solvency
SR has an Altman-Z score of 0.78. 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 (0.78) is worse than 61.54% of its industry peers.
The Debt to FCF ratio of SR is 81.05, which is on the high side as it means it would take SR, 81.05 years of fcf income to pay off all of its debts.
SR has a Debt to FCF ratio (81.05) which is in line with its industry peers.
SR has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
SR has a better Debt to Equity ratio (1.24) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 81.05 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.63
WACC5.89%
2.3 Liquidity
A Current Ratio of 0.61 indicates that SR may have some problems paying its short term obligations.
The Current ratio of SR (0.61) is worse than 61.54% of its industry peers.
SR has a Quick Ratio of 0.61. This is a bad value and indicates that SR is not financially healthy enough and could expect problems in meeting its short term obligations.
SR's Quick ratio of 0.48 is on the low side compared to the rest of the industry. SR is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for SR have decreased strongly by -19.13% in the last year.
Measured over the past 5 years, SR shows a small growth in Earnings Per Share. The EPS has been growing by 1.23% on average per year.
Looking at the last year, SR shows a decrease in Revenue. The Revenue has decreased by -3.17% in the last year.
The Revenue has been growing slightly by 6.29% on average over the past years.
EPS 1Y (TTM)-19.13%
EPS 3Y2.33%
EPS 5Y1.23%
EPS Q2Q%-6.76%
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y12.85%
Revenue growth 5Y6.29%
Sales Q2Q%0.45%
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.
SR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.98% yearly.
EPS Next Y9.69%
EPS Next 2Y7.82%
EPS Next 3Y7.54%
EPS Next 5Y6.35%
Revenue Next Year4.28%
Revenue Next 2Y1.93%
Revenue Next 3Y2.23%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.22 indicates a rather expensive valuation of SR.
61.54% of the companies in the same industry are cheaper than SR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.41. SR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.39 indicates a correct valuation of SR.
Based on the Price/Forward Earnings ratio, SR is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.59. SR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 14.39 |
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 | 70.26 | ||
| EV/EBITDA | 10.65 |
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)1.88
PEG (5Y)14.82
EPS Next 2Y7.82%
EPS Next 3Y7.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.61%, SR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.29, SR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, SR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
5.2 History
On average, the dividend of SR grows each year by 7.29%, which is quite nice.
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
77.36% of the earnings are spent on dividend by SR. This is not a sustainable payout ratio.
SR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP77.36%
EPS Next 2Y7.82%
EPS Next 3Y7.54%
SPIRE INC
NYSE:SR (7/26/2024, 7:04:01 PM)
After market: 67.77 0 (0%)67.77
+0.64 (+0.95%)
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 Cap3.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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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 | 18.22 | ||
| Fwd PE | 14.39 | ||
| 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)1.88
PEG (5Y)14.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 6.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.06% | ||
| PM (TTM) | 8.48% | ||
| 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 | 1.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.48 | ||
| 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)-19.13%
EPS 3Y2.33%
EPS 5Y
EPS Q2Q%
EPS Next Y9.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.17%
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