SPOK HOLDINGS INC (SPOK) Stock Fundamental Analysis
NASDAQ:SPOK - Nasdaq - US84863T1060 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SPOK. SPOK was compared to 22 industry peers in the Wireless Telecommunication Services industry. While SPOK has a great health rating, its profitability is only average at the moment. SPOK has a expensive valuation and it also scores bad on growth. Finally SPOK also has an excellent dividend rating. This makes SPOK very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
SPOK had positive earnings in the past year.
SPOK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SPOK reported negative net income in multiple years.
SPOK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SPOK has a Return On Assets of 6.78%. This is amongst the best in the industry. SPOK outperforms 85.71% of its industry peers.
SPOK has a Return On Equity of 9.40%. This is in the better half of the industry: SPOK outperforms 61.90% of its industry peers.
SPOK has a Return On Invested Capital of 8.15%. This is in the better half of the industry: SPOK outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 9.4% | ||
| ROIC | 8.15% |
ROA(3y)2.3%
ROA(5y)-2.48%
ROE(3y)3.17%
ROE(5y)-3.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 10.66%, SPOK is doing good in the industry, outperforming 76.19% of the companies in the same industry.
SPOK has a Operating Margin of 14.44%. This is in the better half of the industry: SPOK outperforms 61.90% of its industry peers.
In the last couple of years the Operating Margin of SPOK has grown nicely.
SPOK has a better Gross Margin (63.45%) than 71.43% of its industry peers.
SPOK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.44% | ||
| PM (TTM) | 10.66% | ||
| GM | 63.45% |
OM growth 3Y116.19%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.27%
GM growth 5Y0.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPOK is destroying value.
SPOK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SPOK has been increased compared to 5 years ago.
There is no outstanding debt for SPOK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.66 indicates that SPOK is not in any danger for bankruptcy at the moment.
SPOK's Altman-Z score of 4.66 is amongst the best of the industry. SPOK outperforms 100.00% of its industry peers.
SPOK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.66 |
ROIC/WACC0.9
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.28 indicates that SPOK should not have too much problems paying its short term obligations.
SPOK has a Current ratio of 1.28. This is comparable to the rest of the industry: SPOK outperforms 47.62% of its industry peers.
A Quick Ratio of 1.28 indicates that SPOK should not have too much problems paying its short term obligations.
SPOK has a Quick ratio (1.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
SPOK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.12%.
Looking at the last year, SPOK shows a decrease in Revenue. The Revenue has decreased by -0.50% in the last year.
Measured over the past years, SPOK shows a decrease in Revenue. The Revenue has been decreasing by -3.89% on average per year.
EPS 1Y (TTM)-15.12%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-18.18%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y-2.11%
Revenue growth 5Y-3.89%
Sales Q2Q%-1.58%
3.2 Future
SPOK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.19% yearly.
Based on estimates for the next years, SPOK will show a small growth in Revenue. The Revenue will grow by 1.09% on average per year.
EPS Next Y-8.08%
EPS Next 2Y-0.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.39%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.51, SPOK is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of SPOK indicates a somewhat cheap valuation: SPOK is cheaper than 61.90% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SPOK to the average of the S&P500 Index (29.63), we can say SPOK is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 19.18, the valuation of SPOK can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPOK is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SPOK is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPOK is valued more expensive than 80.95% of the companies in the same industry.
SPOK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.51 | ||
| EV/EBITDA | 12.83 |
4.3 Compensation for Growth
SPOK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SPOK has a Yearly Dividend Yield of 7.36%, which is a nice return.
SPOK's Dividend Yield is rather good when compared to the industry average which is at 5.05. SPOK pays more dividend than 95.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, SPOK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
5.2 History
On average, the dividend of SPOK grows each year by 20.13%, which is quite nice.
SPOK has been paying a dividend for at least 10 years, so it has a reliable track record.
SPOK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.13%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
178.99% of the earnings are spent on dividend by SPOK. This is not a sustainable payout ratio.
SPOK's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP178.99%
EPS Next 2Y-0.19%
EPS Next 3YN/A
16.43
-0.55 (-3.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners58.8%
Inst Owner Change-90.42%
Ins Owners2.38%
Ins Owner Change3.1%
Market Cap333.04M
Analysts80
Price Target16.83 (2.43%)
Short Float %1.64%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
Yearly Dividend1.28
Dividend Growth(5Y)20.13%
DP178.99%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.29%
Min EPS beat(2)-12.28%
Max EPS beat(2)-0.3%
EPS beat(4)1
Avg EPS beat(4)-1.3%
Min EPS beat(4)-20.81%
Max EPS beat(4)28.21%
EPS beat(8)3
Avg EPS beat(8)3.64%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-2.9%
Max Revenue beat(2)-1.68%
Revenue beat(4)1
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-2.9%
Max Revenue beat(4)1.95%
Revenue beat(8)5
Avg Revenue beat(8)0.8%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 19.18 | ||
| P/S | 2.42 | ||
| P/FCF | 11.51 | ||
| P/OCF | 10.31 | ||
| P/B | 2.13 | ||
| P/tB | 5.83 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)0.73
EY4.44%
EPS(NY)0.86
Fwd EY5.21%
FCF(TTM)1.43
FCFY8.69%
OCF(TTM)1.59
OCFY9.7%
SpS6.79
BVpS7.71
TBVpS2.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.78% | ||
| ROE | 9.4% | ||
| ROCE | 11.62% | ||
| ROIC | 8.15% | ||
| ROICexc | 9.74% | ||
| ROICexgc | 31.63% | ||
| OM | 14.44% | ||
| PM (TTM) | 10.66% | ||
| GM | 63.45% | ||
| FCFM | 21.01% |
ROA(3y)2.3%
ROA(5y)-2.48%
ROE(3y)3.17%
ROE(5y)-3.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y83.07%
ROICexcg growth 5YN/A
ROICexc growth 3Y108.49%
ROICexc growth 5YN/A
OM growth 3Y116.19%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.27%
GM growth 5Y0.77%
F-Score5
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 86.15% | ||
| Cap/Sales | 2.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 135.75% | ||
| Profit Quality | 197.02% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 4.66 |
F-Score5
WACC9.06%
ROIC/WACC0.9
Cap/Depr(3y)109.24%
Cap/Depr(5y)108.29%
Cap/Sales(3y)5.32%
Cap/Sales(5y)5.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.12%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-18.18%
EPS Next Y-8.08%
EPS Next 2Y-0.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y-2.11%
Revenue growth 5Y-3.89%
Sales Q2Q%-1.58%
Revenue Next Year1.39%
Revenue Next 2Y1.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.19%
EBIT growth 3Y111.63%
EBIT growth 5YN/A
EBIT Next Year55.58%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y496.36%
FCF growth 3Y25.57%
FCF growth 5Y38.92%
OCF growth 1Y2118.69%
OCF growth 3Y-0.02%
OCF growth 5Y20.51%