SPIRE INC (SR)

US84857L1017 - Common Stock

61.38  +0.47 (+0.77%)

After market: 61.38 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SR. SR was compared to 14 industry peers in the Gas Utilities industry. SR may be in some trouble as it scores bad on both profitability and health. SR is valued expensive and it does not seem to be growing.



3

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.
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

SR has a Return On Assets of 1.85%. This is in the lower half of the industry: SR underperforms 64.29% of its industry peers.
Looking at the Return On Equity, with a value of 6.44%, SR is doing worse than 64.29% of the companies in the same industry.
SR has a worse Return On Invested Capital (3.53%) than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SR is below the industry average of 5.94%.
Industry RankSector Rank
ROA 1.85%
ROE 6.44%
ROIC 3.53%
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

With a Profit Margin value of 7.53%, SR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SR has declined.
The Operating Margin of SR (15.62%) is comparable to the rest of the industry.
SR's Operating Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.62%
PM (TTM) 7.53%
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

0

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 about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, SR has more shares outstanding
SR has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.66, we must say that SR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SR (0.66) is worse than 71.43% of its industry peers.
A Debt/Equity ratio of 1.41 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 1.41, SR is in line with its industry, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.41
Debt/FCF N/A
Altman-Z 0.66
ROIC/WACC0.57
WACC6.19%

2.3 Liquidity

A Current Ratio of 0.55 indicates that SR may have some problems paying its short term obligations.
The Current ratio of SR (0.55) is worse than 64.29% of its industry peers.
A Quick Ratio of 0.43 indicates that SR may have some problems paying its short term obligations.
SR's Quick ratio of 0.43 is on the low side compared to the rest of the industry. SR is outperformed by 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 0.55
Quick Ratio 0.43

3

3. Growth

3.1 Past

The earnings per share for SR have decreased by -8.10% in the last year.
SR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.23% yearly.
Looking at the last year, SR shows a small growth in Revenue. The Revenue has grown by 6.18% in the last year.
The Revenue has been growing slightly by 6.29% on average over the past years.
EPS 1Y (TTM)-8.1%
EPS 3Y2.33%
EPS 5Y1.23%
EPS growth Q2Q-5.16%
Revenue 1Y (TTM)6.18%
Revenue growth 3Y12.85%
Revenue growth 5Y6.29%
Revenue growth Q2Q-7.05%

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.
The Revenue is expected to decrease by -0.22% on average over the next years.
EPS Next Y10.8%
EPS Next 2Y7.79%
EPS Next 3Y7.45%
EPS Next 5Y6.35%
Revenue Next Year-0.49%
Revenue Next 2Y-0.06%
Revenue Next 3Y0.97%
Revenue Next 5Y-0.22%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 15.46 indicates a correct valuation of SR.
Compared to the rest of the industry, the Price/Earnings ratio of SR indicates a somewhat cheap valuation: SR is cheaper than 64.29% of the companies listed in the same industry.
SR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
The Price/Forward Earnings ratio is 13.04, 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 78.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.40, SR is valued a bit cheaper.
Industry RankSector Rank
PE 15.46
Fwd PE 13.04

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SR is on the same level as its industry peers.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.56

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.43
PEG (5Y)12.58
EPS Next 2Y7.79%
EPS Next 3Y7.45%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 5.08%, SR is a good candidate for dividend investing.
SR's Dividend Yield is comparable with the industry average which is at 4.77.
SR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 5.08%

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.
SR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.29%
Div Incr Years9
Div Non Decr Years9

5.3 Sustainability

85.50% 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.
DP85.5%
EPS Next 2Y7.79%
EPS Next 3Y7.45%

SPIRE INC

NYSE:SR (4/22/2024, 3:15:01 PM)

After market: 61.38 0 (0%)

61.38

+0.47 (+0.77%)

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 Cap3.37B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 5.08%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 15.46
Fwd PE 13.04
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)1.43
PEG (5Y)12.58
Profitability
Industry RankSector Rank
ROA 1.85%
ROE 6.44%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.62%
PM (TTM) 7.53%
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 Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 1.41
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.55
Quick Ratio 0.43
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)
Growth
EPS 1Y (TTM)-8.1%
EPS 3Y2.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.18%
Revenue growth 3Y12.85%
Revenue growth 5Y
Revenue growth 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