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. While SR is still in line with the averages on profitability rating, there are concerns on its financial health. SR is quite expensive at the moment. It does show a decent growth rate. Finally 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.
SR had positive earnings in each of the past 5 years.
SR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SR has a worse Return On Assets (2.06%) than 64.29% of its industry peers.
SR's Return On Equity of 7.01% is on the low side compared to the rest of the industry. SR is outperformed by 64.29% of its industry peers.
SR has a Return On Invested Capital of 3.96%. This is in the lower half of the industry: SR underperforms 78.57% of its industry peers.
SR had an Average Return On Invested Capital over the past 3 years of 3.84%. This is below the industry average of 6.35%.
The last Return On Invested Capital (3.96%) for SR is above the 3 year average (3.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 7.01% | ||
| ROIC | 3.96% |
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 (9.26%) is better than 64.29% of its industry peers.
In the last couple of years the Profit Margin of SR has remained more or less at the same level.
SR has a Operating Margin of 19.87%. This is comparable to the rest of the industry: SR outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of SR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.87% | ||
| PM (TTM) | 9.26% | ||
| 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
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 better debt/assets ratio than last year.
2.2 Solvency
SR has an Altman-Z score of 0.73. This is a bad value and indicates that SR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.73, SR is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
SR has a debt to FCF ratio of 174.31. This is a negative value and a sign of low solvency as SR would need 174.31 years to pay back of all of its debts.
The Debt to FCF ratio of SR (174.31) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.47 is on the high side and indicates that SR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.47, SR is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 174.31 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.63
WACC6.24%
2.3 Liquidity
A Current Ratio of 0.50 indicates that SR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.50, SR is doing worse than 78.57% of the companies in the same industry.
A Quick Ratio of 0.37 indicates that SR may have some problems paying its short term obligations.
SR has a worse Quick ratio (0.37) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
SR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.52%, which is quite good.
SR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.60% yearly.
The Revenue has decreased by -2.75% in the past year.
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)-2.75%
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.
SR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.06% yearly.
EPS Next Y9.22%
EPS Next 2Y10.98%
EPS Next 3Y8.8%
EPS Next 5Y6.35%
Revenue Next Year-1.92%
Revenue Next 2Y1.08%
Revenue Next 3Y1.22%
Revenue Next 5Y2.06%
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
With a Price/Earnings ratio of 17.95, SR is valued on the expensive side.
Based on the Price/Earnings ratio, SR is valued a bit cheaper than 64.29% of the companies in the same industry.
SR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
Based on the Price/Forward Earnings ratio of 14.64, the valuation of SR can be described as correct.
Based on the Price/Forward Earnings ratio, SR is valued a bit cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, SR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 14.64 |
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 | 158.81 | ||
| EV/EBITDA | 10.48 |
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)1.95
PEG (5Y)6.92
EPS Next 2Y10.98%
EPS Next 3Y8.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.12%, SR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.91, SR pays a bit more dividend than its industry peers.
SR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
5.2 History
The dividend of SR is nicely growing with an annual growth rate of 6.49%!
SR has paid a dividend for at least 10 years, which is a reliable track record.
SR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.49%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
80.91% 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.
DP80.91%
EPS Next 2Y10.98%
EPS Next 3Y8.8%
76.48
+0.19 (+0.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.25%
Inst Owner Change0.74%
Ins Owners0.34%
Ins Owner Change0.54%
Market Cap4.46B
Analysts76.67
Price Target78.77 (2.99%)
Short Float %2.64%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend3.29
Dividend Growth(5Y)6.49%
DP80.91%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.13%
Min EPS beat(2)-8.17%
Max EPS beat(2)-0.1%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-9.86%
Max EPS beat(4)16.78%
EPS beat(8)3
Avg EPS beat(8)-4091.72%
EPS beat(12)6
Avg EPS beat(12)-2728.31%
EPS beat(16)9
Avg EPS beat(16)-2039.05%
Revenue beat(2)0
Avg Revenue beat(2)-19.78%
Min Revenue beat(2)-25.44%
Max Revenue beat(2)-14.13%
Revenue beat(4)1
Avg Revenue beat(4)-9.87%
Min Revenue beat(4)-25.44%
Max Revenue beat(4)11.01%
Revenue beat(8)3
Avg Revenue beat(8)-3.44%
Revenue beat(12)7
Avg Revenue beat(12)5.08%
Revenue beat(16)10
Avg Revenue beat(16)6.57%
PT rev (1m)3.27%
PT rev (3m)7.03%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 14.64 | ||
| P/S | 1.78 | ||
| P/FCF | 158.81 | ||
| P/OCF | 4.83 | ||
| P/B | 1.35 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 10.48 |
EPS(TTM)4.26
EY5.57%
EPS(NY)5.22
Fwd EY6.83%
FCF(TTM)0.48
FCFY0.63%
OCF(TTM)15.83
OCFY20.69%
SpS42.94
BVpS56.71
TBVpS36.63
PEG (NY)1.95
PEG (5Y)6.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 7.01% | ||
| ROCE | 5.36% | ||
| ROIC | 3.96% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 4.46% | ||
| OM | 19.87% | ||
| PM (TTM) | 9.26% | ||
| GM | N/A | ||
| FCFM | 1.12% |
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-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 174.31 | ||
| Debt/EBITDA | 6.21 | ||
| Cap/Depr | 315.62% | ||
| Cap/Sales | 35.74% | ||
| Interest Coverage | 2.55 | ||
| Cash Conversion | 118.16% | ||
| Profit Quality | 12.11% | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.73 |
F-Score5
WACC6.24%
ROIC/WACC0.63
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 Y9.22%
EPS Next 2Y10.98%
EPS Next 3Y8.8%
EPS Next 5Y6.35%
Revenue 1Y (TTM)-2.75%
Revenue growth 3Y5.07%
Revenue growth 5Y5.84%
Sales Q2Q%-6.84%
Revenue Next Year-1.92%
Revenue Next 2Y1.08%
Revenue Next 3Y1.22%
Revenue Next 5Y2.06%
EBIT growth 1Y22.15%
EBIT growth 3Y2.74%
EBIT growth 5Y10.07%
EBIT Next Year67.72%
EBIT Next 3Y24.18%
EBIT Next 5Y16.25%
FCF growth 1Y106.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y709.38%
OCF growth 3Y54%
OCF growth 5Y15.14%