SPIRE INC (SR) Stock Fundamental Analysis
NYSE:SR - New York Stock Exchange, Inc. - US84857L1017 - Common Stock - Currency: USD
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. SR has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, SR is valued expensive at the moment. 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.
Each year in the past 5 years SR has been profitable.
Each year in the past 5 years SR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SR (2.09%) is worse than 64.29% of its industry peers.
The Return On Equity of SR (6.75%) is worse than 71.43% of its industry peers.
SR has a worse Return On Invested Capital (4.09%) than 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 6.29%.
The last Return On Invested Capital (4.09%) for SR is above the 3 year average (3.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.75% | ||
| ROIC | 4.09% |
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
SR has a Profit Margin of 9.76%. This is in the better half of the industry: SR outperforms 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's Operating Margin of 20.83% is in line compared 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 | 20.83% | ||
| PM (TTM) | 9.76% | ||
| 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.
Compared to 1 year ago, SR has more shares outstanding
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 0.71. This is a bad value and indicates that SR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.71, SR is doing worse than 64.29% of the companies in the same industry.
SR has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
SR has a Debt to Equity ratio of 1.24. This is comparable to the rest of the industry: SR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.53
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.43 indicates that SR may have some problems paying its short term obligations.
SR's Current ratio of 0.43 is on the low side compared to the rest of the industry. SR is outperformed by 92.86% of its industry peers.
A Quick Ratio of 0.34 indicates that SR may have some problems paying its short term obligations.
SR's Quick ratio of 0.34 is on the low side compared to the rest of the industry. SR is outperformed by 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.34 |
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.
Measured over the past 5 years, SR shows a small growth in Earnings Per Share. The EPS has been growing by 2.60% on average per year.
SR shows a decrease in Revenue. In the last year, the revenue decreased by -7.10%.
Measured over the past years, SR shows a small growth in Revenue. The Revenue has been growing by 5.84% on average per year.
EPS 1Y (TTM)14.52%
EPS 3Y-4.51%
EPS 5Y2.6%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-7.1%
Revenue growth 3Y5.07%
Revenue growth 5Y5.84%
Sales Q2Q%-6.84%
3.2 Future
The Earnings Per Share is expected to grow by 6.54% on average over the next years.
Based on estimates for the next years, SR will show a small growth in Revenue. The Revenue will grow by 2.14% on average per year.
EPS Next Y9.18%
EPS Next 2Y11.21%
EPS Next 3Y9.18%
EPS Next 5Y6.54%
Revenue Next Year-6.57%
Revenue Next 2Y-0.89%
Revenue Next 3Y-0.98%
Revenue Next 5Y2.14%
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
A Price/Earnings ratio of 17.38 indicates a rather expensive valuation of SR.
SR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. SR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.12 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 64.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. SR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SR is valued a bit more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.13 |
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)1.89
PEG (5Y)6.7
EPS Next 2Y11.21%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, SR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.00, 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of SR is nicely growing with an annual growth rate of 6.49%!
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)6.49%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
SR pays out 80.76% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP80.76%
EPS Next 2Y11.21%
EPS Next 3Y9.18%
74.06
+0.65 (+0.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners89.9%
Inst Owner Change-0.1%
Ins Owners0.25%
Ins Owner Change0.36%
Market Cap4.32B
Analysts76.67
Price Target79.45 (7.28%)
Short Float %3.26%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend3.29
Dividend Growth(5Y)6.49%
DP80.76%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.52%
Min EPS beat(2)-8.17%
Max EPS beat(2)-4.88%
EPS beat(4)1
Avg EPS beat(4)0.91%
Min EPS beat(4)-8.17%
Max EPS beat(4)16.78%
EPS beat(8)2
Avg EPS beat(8)-4092.74%
EPS beat(12)5
Avg EPS beat(12)-2729.27%
EPS beat(16)8
Avg EPS beat(16)-2040.4%
Revenue beat(2)0
Avg Revenue beat(2)-15.97%
Min Revenue beat(2)-17.8%
Max Revenue beat(2)-14.13%
Revenue beat(4)1
Avg Revenue beat(4)-11.59%
Min Revenue beat(4)-25.44%
Max Revenue beat(4)11.01%
Revenue beat(8)2
Avg Revenue beat(8)-8.37%
Revenue beat(12)6
Avg Revenue beat(12)3.47%
Revenue beat(16)9
Avg Revenue beat(16)3.05%
PT rev (1m)-1.54%
PT rev (3m)4.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.18%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-6.97%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)-1.64%
Revenue NY rev (3m)-4.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.38 | ||
| Fwd PE | 14.12 | ||
| P/S | 1.78 | ||
| P/FCF | N/A | ||
| P/OCF | 5.36 | ||
| P/B | 1.23 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 10.13 |
EPS(TTM)4.26
EY5.75%
EPS(NY)5.24
Fwd EY7.08%
FCF(TTM)-2.13
FCFYN/A
OCF(TTM)13.83
OCFY18.67%
SpS41.62
BVpS60.13
TBVpS40.05
PEG (NY)1.89
PEG (5Y)6.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 6.75% | ||
| ROCE | 5.48% | ||
| ROIC | 4.09% | ||
| ROICexc | 4.1% | ||
| ROICexgc | 4.63% | ||
| OM | 20.83% | ||
| PM (TTM) | 9.76% | ||
| GM | N/A | ||
| FCFM | N/A |
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-Score6
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.49 | ||
| Cap/Depr | 322.77% | ||
| Cap/Sales | 38.35% | ||
| Interest Coverage | 2.48 | ||
| Cash Conversion | 101.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 0.71 |
F-Score6
WACC7.77%
ROIC/WACC0.53
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 Y9.18%
EPS Next 2Y11.21%
EPS Next 3Y9.18%
EPS Next 5Y6.54%
Revenue 1Y (TTM)-7.1%
Revenue growth 3Y5.07%
Revenue growth 5Y5.84%
Sales Q2Q%-6.84%
Revenue Next Year-6.57%
Revenue Next 2Y-0.89%
Revenue Next 3Y-0.98%
Revenue Next 5Y2.14%
EBIT growth 1Y13.41%
EBIT growth 3Y2.74%
EBIT growth 5Y10.07%
EBIT Next Year71.86%
EBIT Next 3Y24.6%
EBIT Next 5Y16.44%
FCF growth 1Y75.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y911.03%
OCF growth 3Y54%
OCF growth 5Y15.14%