SPIRE INC (SR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SR - US84857L1017 - Common Stock
84.86 USD
+0.88 (+1.05%)
84.86 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 is not valued too expensively and it also shows 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.
- In the past year SR had a positive cash flow from operations.
- 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
- SR has a worse Return On Assets (2.22%) than 78.57% of its industry peers.
- SR has a worse Return On Equity (7.57%) than 71.43% of its industry peers.
- SR has a Return On Invested Capital of 4.13%. 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 3.88%. This is below the industry average of 6.27%.
- The 3 year average ROIC (3.88%) for SR is below the current ROIC(4.13%), indicating increased profibility in the last year.
| 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
- SR has a Profit Margin (10.36%) which is comparable to the rest of the industry.
- SR's Profit Margin has improved in the last couple of years.
- SR has a better Operating Margin (21.16%) than 64.29% of its industry peers.
- In the last couple of years the Operating Margin of SR has grown nicely.
| 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.
- Compared to 5 years ago, SR has more shares outstanding
- The debt/assets ratio for SR is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.68, we must say that SR is in the distress zone and has some risk of bankruptcy.
- SR's Altman-Z score of 0.68 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 Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of SR (1.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.67
WACC6.18%
2.3 Liquidity
- A Current Ratio of 0.32 indicates that SR may have some problems paying its short term obligations.
- SR has a worse Current ratio (0.32) than 92.86% of its industry peers.
- SR has a Quick Ratio of 0.32. This is a bad value and indicates that SR is not financially healthy enough and could expect problems in meeting its short term obligations.
- SR has a Quick ratio of 0.21. This is amonst the worse of the industry: SR underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.32 | ||
| Quick Ratio | 0.21 |
3. Growth
3.1 Past
- SR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.66%.
- The Earnings Per Share has been growing slightly by 3.46% on average over the past years.
- Looking at the last year, SR shows a decrease in Revenue. The Revenue has decreased by -4.50% in the last year.
- SR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.94% yearly.
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.
- The Revenue is expected to grow by 2.02% on average over the next years.
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
- With a Price/Earnings ratio of 18.94, SR is valued on the expensive side.
- SR's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, SR is valued a bit cheaper.
- A Price/Forward Earnings ratio of 15.50 indicates a correct valuation of SR.
- Based on the Price/Forward Earnings ratio, SR is valued a bit cheaper than 64.29% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of SR to the average of the S&P500 Index (25.83), we can say SR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.94 | ||
| Fwd PE | 15.5 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.72 |
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)0.85
PEG (5Y)5.48
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.
- Compared to an average industry Dividend Yield of 3.96, SR pays a better dividend. On top of this SR pays more dividend than 92.86% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SR pays a better dividend.
| 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 been paying a dividend for at least 10 years, so it has 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
- SR pays out 76.77% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of SR is growing, but earnings are growing more, so the dividend growth is 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 18.94 and the Price/Book (PB) ratio is 1.48.
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%.