SPIRE INC (SR)
US84857L1017 - Common Stock
SR gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 13 industry peers in the Gas Utilities industry. SR has a bad profitability rating. Also its financial health evaluation is rather negative. SR has a valuation in line with the averages, but it does not seem to be growing. 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 4 of the past 5 years.
Of the past 5 years SR 4 years had a positive operating cash flow.
1.2 Ratios
SR's Return On Assets of 2.15% is on the low side compared to the rest of the industry. SR is outperformed by 76.92% of its industry peers.
SR's Return On Equity of 6.92% is on the low side compared to the rest of the industry. SR is outperformed by 76.92% of its industry peers.
With a Return On Invested Capital value of 3.89%, SR is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SR is below the industry average of 6.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 6.92% | ||
| ROIC | 3.89% |
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
SR's Profit Margin of 8.84% is on the low side compared to the rest of the industry. SR is outperformed by 61.54% of its industry peers.
SR's Profit Margin has declined in the last couple of years.
The Operating Margin of SR (17.80%) is worse than 61.54% of its industry peers.
In the last couple of years the Operating Margin of SR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 8.84% | ||
| 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
2. Health
2.1 Basic Checks
SR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for SR. 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
SR has an Altman-Z score of 0.75. This is a bad value and indicates that SR is not financially healthy and even has some risk of bankruptcy.
SR has a Altman-Z score of 0.75. This is in the lower half of the industry: SR underperforms 61.54% of its industry peers.
The Debt to FCF ratio of SR is 81.97, which is on the high side as it means it would take SR, 81.97 years of fcf income to pay off all of its debts.
SR has a Debt to FCF ratio (81.97) which is comparable to the rest of the industry.
SR has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.26, SR is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 81.97 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.65
WACC5.96%
2.3 Liquidity
SR has a Current Ratio of 0.48. This is a bad value and indicates that SR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.48, SR is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
A Quick Ratio of 0.35 indicates that SR may have some problems paying its short term obligations.
The Quick ratio of SR (0.35) is worse than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
SR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.69%.
SR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.60% yearly.
EPS 1Y (TTM)4.69%
EPS 3Y-4.51%
EPS 5Y2.6%
EPS Q2Q%30.77%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.35%
3.2 Future
The Earnings Per Share is expected to grow by 6.77% on average over the next years.
The Revenue is expected to grow by 1.06% on average over the next years.
EPS Next Y10.72%
EPS Next 2Y8.91%
EPS Next 3Y7.33%
EPS Next 5Y6.77%
Revenue Next Year0.28%
Revenue Next 2Y1.95%
Revenue Next 3Y2.87%
Revenue Next 5Y1.06%
3.3 Evolution
The EPS 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
Based on the Price/Earnings ratio of 16.13, the valuation of SR can be described as correct.
Based on the Price/Earnings ratio, SR is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SR to the average of the S&P500 Index (28.65), we can say SR is valued slightly cheaper.
SR is valuated correctly with a Price/Forward Earnings ratio of 14.57.
76.92% of the companies in the same industry are more expensive than SR, based on the Price/Forward Earnings ratio.
SR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.94 | ||
| EV/EBITDA | 10.4 |
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)1.5
PEG (5Y)6.21
EPS Next 2Y8.91%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
SR has a Yearly Dividend Yield of 4.62%, which is a nice return.
Compared to an average industry Dividend Yield of 4.22, 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
5.2 History
The dividend of SR is nicely growing with an annual growth rate of 7.29%!
SR has been paying a dividend for at least 10 years, so it has a reliable track record.
As SR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.29%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
SR pays out 76.89% of its income as dividend. 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.
DP76.89%
EPS Next 2Y8.91%
EPS Next 3Y7.33%
SPIRE INC
NYSE:SR (11/20/2024, 7:48:58 PM)
After market: 68.39 0 (0%)68.39
+0.46 (+0.68%)
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 Cap3.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 14.57 | ||
| 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)1.5
PEG (5Y)6.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 6.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.8% | ||
| PM (TTM) | 8.84% | ||
| 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 Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.35 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)4.69%
EPS 3Y-4.51%
EPS 5Y
EPS Q2Q%
EPS Next Y10.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales 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