SPIRE INC (SR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SR - US84857L1017 - Common Stock
84.06 USD
+1.28 (+1.55%)
84.06 USD
0 (0%)
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. While SR is still in line with the averages on profitability rating, there are concerns on its financial health. SR has a decent growth rate and is not valued too expensively. 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.
- In the past 5 years SR always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.22%, SR is doing worse than 78.57% of the companies in the same industry.
- SR has a Return On Equity of 7.57%. This is in the lower half of the industry: SR underperforms 71.43% of its industry peers.
- The Return On Invested Capital of SR (4.13%) is worse than 78.57% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SR is below the industry average of 6.27%.
- The last Return On Invested Capital (4.13%) for SR is above the 3 year average (3.88%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 7.57% | ||
| ROIC | 4.13% |
ROA(3y)2.12%
ROA(5y)2.23%
ROE(3y)7.27%
ROE(5y)7.75%
ROIC(3y)3.88%
ROIC(5y)3.96%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.36%, SR is in line with its industry, outperforming 50.00% of the companies in the same industry.
- SR's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 21.16%, SR is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- SR's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.16% | ||
| PM (TTM) | 10.36% | ||
| GM | N/A |
OM growth 3Y4.45%
OM growth 5Y2.03%
PM growth 3Y3.46%
PM growth 5Y21.14%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SR is destroying value.
- The number of shares outstanding for SR has been increased compared to 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 0.67. This is a bad value and indicates that SR is not financially healthy and even has some risk of bankruptcy.
- SR has a Altman-Z score of 0.67. This is in the lower half of the industry: SR underperforms 64.29% of its industry peers.
- SR has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.38, SR perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACC0.67
WACC6.16%
2.3 Liquidity
- A Current Ratio of 0.32 indicates that SR may have some problems paying its short term obligations.
- The Current ratio of SR (0.32) is worse than 92.86% of its industry peers.
- A Quick Ratio of 0.21 indicates that SR may have some problems paying its short term obligations.
- With a Quick ratio value of 0.21, 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 | 0.32 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.66% over the past year.
- The Earnings Per Share has been growing slightly by 3.46% on average over the past years.
- The Revenue has decreased by -4.50% in the past year.
- Measured over the past years, SR shows a small growth in Revenue. The Revenue has been growing by 5.94% on average per year.
EPS 1Y (TTM)5.66%
EPS 3Y4.64%
EPS 5Y3.46%
EPS Q2Q%12.96%
Revenue 1Y (TTM)-4.5%
Revenue growth 3Y4.05%
Revenue growth 5Y5.94%
Sales Q2Q%13.72%
3.2 Future
- Based on estimates for the next years, SR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.11% on average per year.
- SR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.02% yearly.
EPS Next Y22.24%
EPS Next 2Y14.82%
EPS Next 3Y12.27%
EPS Next 5Y9.11%
Revenue Next Year7.93%
Revenue Next 2Y8.41%
Revenue Next 3Y7.55%
Revenue Next 5Y2.02%
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 18.76 indicates a rather expensive valuation of SR.
- The rest of the industry has a similar Price/Earnings ratio as SR.
- SR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- SR is valuated correctly with a Price/Forward Earnings ratio of 15.35.
- SR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SR is cheaper than 64.29% of the companies in the same industry.
- SR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
- SR's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.63 |
4.3 Compensation for Growth
- SR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SR's earnings are expected to grow with 12.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)5.43
EPS Next 2Y14.82%
EPS Next 3Y12.27%
5. Dividend
5.1 Amount
- SR has a Yearly Dividend Yield of 6.38%, which is a nice return.
- SR's Dividend Yield is rather good when compared to the industry average which is at 3.96. SR pays more dividend than 92.86% of the companies in the same industry.
- SR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
5.2 History
- The dividend of SR has a limited annual growth rate of 4.02%.
- 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)4.02%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- 76.77% of the earnings are spent on dividend by SR. This is not a sustainable payout ratio.
- SR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP76.77%
EPS Next 2Y14.82%
EPS Next 3Y12.27%
SPIRE INC / SR FAQ
Can you provide the ChartMill fundamental rating for SPIRE INC?
ChartMill assigns a fundamental rating of 3 / 10 to SR.
What is the valuation status of SPIRE INC (SR) stock?
ChartMill assigns a valuation rating of 4 / 10 to SPIRE INC (SR). This can be considered as Fairly Valued.
How profitable is SPIRE INC (SR) stock?
SPIRE INC (SR) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SR stock?
The Price/Earnings (PE) ratio for SPIRE INC (SR) is 18.76 and the Price/Book (PB) ratio is 1.46.
Can you provide the dividend sustainability for SR stock?
The dividend rating of SPIRE INC (SR) is 8 / 10 and the dividend payout ratio is 76.77%.