SPIRE INC (SR) Stock Fundamental Analysis
NYSE:SR - New York Stock Exchange, Inc. - US84857L1017 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SR. SR was compared to 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of SR while its profitability can be described as average. SR is valied quite expensively at the moment, while it does show a decent growth rate. 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.
Each year in the past 5 years SR has been profitable.
Each year in the past 5 years SR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.09%, SR is doing worse than 64.29% of the companies in the same industry.
SR has a Return On Equity of 6.75%. This is in the lower half of the industry: SR underperforms 71.43% of its industry peers.
SR's Return On Invested Capital of 4.09% is on the low side compared to the rest of the industry. SR is outperformed by 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SR is below the industry average of 6.56%.
The 3 year average ROIC (3.84%) for SR is below the current ROIC(4.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.75% | ||
| ROIC | 4.09% |
ROA(3y)2.06%
ROA(5y)1.96%
ROE(3y)7.18%
ROE(5y)6.82%
ROIC(3y)3.84%
ROIC(5y)3.98%
1.3 Margins
The Profit Margin of SR (9.76%) is better than 64.29% of its industry peers.
SR's Profit Margin has been stable in the last couple of years.
SR has a Operating Margin of 20.83%. This is comparable to the rest of the industry: SR outperforms 57.14% of its industry peers.
SR's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.83% | ||
| PM (TTM) | 9.76% | ||
| GM | N/A |
OM growth 3Y-2.21%
OM growth 5Y3.99%
PM growth 3Y-7.46%
PM growth 5Y-0.15%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SR is destroying value.
The number of shares outstanding for SR has been increased compared to 1 year ago.
The number of shares outstanding for SR has been increased compared to 5 years ago.
SR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that SR is in the distress zone and has some risk of bankruptcy.
SR has a Altman-Z score of 0.71. This is in the lower half of the industry: SR underperforms 64.29% of its industry peers.
SR has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SR (1.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.65
WACC6.31%
2.3 Liquidity
A Current Ratio of 0.43 indicates that SR may have some problems paying its short term obligations.
The Current ratio of SR (0.43) is worse than 92.86% of its industry peers.
SR has a Quick Ratio of 0.43. This is a bad value and indicates that SR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.34, SR is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.52% over the past year.
Measured over the past 5 years, SR shows a small growth in Earnings Per Share. The EPS has been growing by 2.60% on average per year.
The Revenue has decreased by -7.10% in the past year.
SR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.84% yearly.
EPS 1Y (TTM)14.52%
EPS 3Y-4.51%
EPS 5Y2.6%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-7.1%
Revenue growth 3Y5.07%
Revenue growth 5Y5.84%
Sales Q2Q%-6.84%
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 2.06% on average per year.
EPS Next Y9.13%
EPS Next 2Y11.03%
EPS Next 3Y9.15%
EPS Next 5Y6.35%
Revenue Next Year-5.01%
Revenue Next 2Y0.95%
Revenue Next 3Y0.82%
Revenue Next 5Y2.06%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 17.52 indicates a rather expensive 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.
Compared to an average S&P500 Price/Earnings ratio of 25.82, SR is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.28, SR is valued correctly.
Based on the Price/Forward Earnings ratio, SR is valued a bit cheaper than 64.29% of the companies in the same industry.
SR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 14.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.92
PEG (5Y)6.75
EPS Next 2Y11.03%
EPS Next 3Y9.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, SR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.96, SR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, SR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
5.2 History
On average, the dividend of SR grows each year by 6.49%, which is quite nice.
SR has paid a dividend for at least 10 years, which is a reliable track record.
SR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.49%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
80.76% of the earnings are spent on dividend by SR. This is not a sustainable payout ratio.
The dividend of SR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP80.76%
EPS Next 2Y11.03%
EPS Next 3Y9.15%
74.62
+1.15 (+1.57%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.25%
Inst Owner Change-0.19%
Ins Owners0.34%
Ins Owner Change0.54%
Market Cap4.35B
Analysts76.67
Price Target80.69 (8.13%)
Short Float %2.93%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend3.29
Dividend Growth(5Y)6.49%
DP80.76%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.43%
Min EPS beat(2)-8.17%
Max EPS beat(2)-4.7%
EPS beat(4)1
Avg EPS beat(4)0.95%
Min EPS beat(4)-8.17%
Max EPS beat(4)16.78%
EPS beat(8)2
Avg EPS beat(8)-4092.72%
EPS beat(12)5
Avg EPS beat(12)-2729.25%
EPS beat(16)8
Avg EPS beat(16)-2040.39%
Revenue beat(2)0
Avg Revenue beat(2)-15.97%
Min Revenue beat(2)-17.8%
Max Revenue beat(2)-14.13%
Revenue beat(4)1
Avg Revenue beat(4)-11.59%
Min Revenue beat(4)-25.44%
Max Revenue beat(4)11.01%
Revenue beat(8)2
Avg Revenue beat(8)-8.37%
Revenue beat(12)6
Avg Revenue beat(12)3.47%
Revenue beat(16)9
Avg Revenue beat(16)3.05%
PT rev (1m)3.34%
PT rev (3m)9.65%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-15.18%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)3.47%
Revenue NQ rev (3m)21.56%
Revenue NY rev (1m)-3.18%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 14.28 | ||
| P/S | 1.79 | ||
| P/FCF | N/A | ||
| P/OCF | 5.4 | ||
| P/B | 1.24 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 10.09 |
EPS(TTM)4.26
EY5.71%
EPS(NY)5.23
Fwd EY7.01%
FCF(TTM)-2.13
FCFYN/A
OCF(TTM)13.83
OCFY18.53%
SpS41.62
BVpS60.13
TBVpS40.05
PEG (NY)1.92
PEG (5Y)6.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.75% | ||
| ROCE | 5.48% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.1% | ||
| ROICexgc | 4.63% | ||
| OM | 20.83% | ||
| PM (TTM) | 9.76% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.06%
ROA(5y)1.96%
ROE(3y)7.18%
ROE(5y)6.82%
ROIC(3y)3.84%
ROIC(5y)3.98%
ROICexc(3y)3.84%
ROICexc(5y)3.98%
ROICexgc(3y)4.39%
ROICexgc(5y)4.6%
ROCE(3y)5.17%
ROCE(5y)5.31%
ROICexcg growth 3Y-4.17%
ROICexcg growth 5Y0.67%
ROICexc growth 3Y-3.31%
ROICexc growth 5Y1.95%
OM growth 3Y-2.21%
OM growth 5Y3.99%
PM growth 3Y-7.46%
PM growth 5Y-0.15%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.49 | ||
| Cap/Depr | 322.77% | ||
| Cap/Sales | 38.35% | ||
| Interest Coverage | 2.48 | ||
| Cash Conversion | 101.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 0.71 |
F-Score6
WACC6.31%
ROIC/WACC0.65
Cap/Depr(3y)267.36%
Cap/Depr(5y)283.77%
Cap/Sales(3y)27.73%
Cap/Sales(5y)29.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.52%
EPS 3Y-4.51%
EPS 5Y2.6%
EPS Q2Q%4.35%
EPS Next Y9.13%
EPS Next 2Y11.03%
EPS Next 3Y9.15%
EPS Next 5Y6.35%
Revenue 1Y (TTM)-7.1%
Revenue growth 3Y5.07%
Revenue growth 5Y5.84%
Sales Q2Q%-6.84%
Revenue Next Year-5.01%
Revenue Next 2Y0.95%
Revenue Next 3Y0.82%
Revenue Next 5Y2.06%
EBIT growth 1Y13.41%
EBIT growth 3Y2.74%
EBIT growth 5Y10.07%
EBIT Next Year67.72%
EBIT Next 3Y24.18%
EBIT Next 5Y16.25%
FCF growth 1Y75.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y911.03%
OCF growth 3Y54%
OCF growth 5Y15.14%