SPIRE INC (SR) Stock Fundamental Analysis
NYSE:SR - New York Stock Exchange, Inc. - US84857L1017 - Common Stock - Currency: USD
Taking everything into account, SR scores 3 out of 10 in our fundamental rating. 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 quite expensive at the moment. 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.
SR had a positive operating cash flow in the past year.
Each year in the past 5 years SR has been profitable.
SR had a positive operating cash flow in each of the past 5 years.
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.
The Return On Equity of SR (6.75%) is worse than 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.09%, SR is doing worse than 78.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SR is below the industry average of 6.29%.
The last Return On Invested Capital (4.09%) for SR is above the 3 year average (3.84%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 9.76%, SR is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
SR's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 20.83%, SR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Operating Margin of SR has grown nicely.
| 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.
SR has more shares outstanding than it did 1 year ago.
SR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that SR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SR (0.72) is worse than 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.
SR has a Debt to Equity ratio (1.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.72 |
ROIC/WACC0.53
WACC7.77%
2.3 Liquidity
SR has a Current 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.
Looking at the Current ratio, with a value of 0.43, SR is doing worse than 92.86% of the companies in the same industry.
A Quick Ratio of 0.34 indicates that SR may have some problems paying its short term obligations.
The Quick ratio of SR (0.34) is worse than 92.86% of its industry peers.
| 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.
SR shows a decrease in Revenue. In the last year, the revenue decreased by -7.10%.
The Revenue has been growing slightly by 5.84% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.74% on average over the next years.
Based on estimates for the next years, SR will show a small growth in Revenue. The Revenue will grow by 2.14% on average per year.
EPS Next Y9.18%
EPS Next 2Y11.21%
EPS Next 3Y9.18%
EPS Next 5Y6.74%
Revenue Next Year-6.57%
Revenue Next 2Y-0.89%
Revenue Next 3Y-0.98%
Revenue Next 5Y2.14%
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
SR is valuated rather expensively with a Price/Earnings ratio of 17.12.
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 26.69, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.91, which indicates a correct valuation of SR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SR indicates a somewhat cheap valuation: SR is cheaper than 64.29% of the companies listed in the same industry.
SR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than SR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.16 |
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)1.86
PEG (5Y)6.59
EPS Next 2Y11.21%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, SR is a good candidate for dividend investing.
SR's Dividend Yield is a higher than the industry average which is at 4.03.
SR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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.
SR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP80.76%
EPS Next 2Y11.21%
EPS Next 3Y9.18%
72.93
-1.57 (-2.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.9%
Inst Owner Change-0.1%
Ins Owners0.25%
Ins Owner Change0.36%
Market Cap4.26B
Analysts76.67
Price Target79.45 (8.94%)
Short Float %3.55%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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)-6.52%
Min EPS beat(2)-8.17%
Max EPS beat(2)-4.88%
EPS beat(4)1
Avg EPS beat(4)0.91%
Min EPS beat(4)-8.17%
Max EPS beat(4)16.78%
EPS beat(8)2
Avg EPS beat(8)-4092.74%
EPS beat(12)5
Avg EPS beat(12)-2729.27%
EPS beat(16)8
Avg EPS beat(16)-2040.4%
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)-1.54%
PT rev (3m)4.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.18%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-6.97%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)-1.64%
Revenue NY rev (3m)-4.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 13.91 | ||
| P/S | 1.75 | ||
| P/FCF | N/A | ||
| P/OCF | 5.27 | ||
| P/B | 1.21 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)4.26
EY5.84%
EPS(NY)5.24
Fwd EY7.19%
FCF(TTM)-2.13
FCFYN/A
OCF(TTM)13.83
OCFY18.96%
SpS41.62
BVpS60.13
TBVpS40.05
PEG (NY)1.86
PEG (5Y)6.59
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 | 0.72 |
F-Score6
WACC7.77%
ROIC/WACC0.53
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 Y9.18%
EPS Next 2Y11.21%
EPS Next 3Y9.18%
EPS Next 5Y6.74%
Revenue 1Y (TTM)-7.1%
Revenue growth 3Y5.07%
Revenue growth 5Y5.84%
Sales Q2Q%-6.84%
Revenue Next Year-6.57%
Revenue Next 2Y-0.89%
Revenue Next 3Y-0.98%
Revenue Next 5Y2.14%
EBIT growth 1Y13.41%
EBIT growth 3Y2.74%
EBIT growth 5Y10.07%
EBIT Next Year71.86%
EBIT Next 3Y24.6%
EBIT Next 5Y16.44%
FCF growth 1Y75.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y911.03%
OCF growth 3Y54%
OCF growth 5Y15.14%