SPIRE INC (SR) Stock Fundamental Analysis
NYSE:SR - New York Stock Exchange, Inc. - US84857L1017 - Common Stock - Currency: USD
Overall SR gets a fundamental rating of 3 out of 10. We evaluated SR against 14 industry peers in the Gas Utilities industry. There are concerns on the financial health of SR while its profitability can be described as average. SR has a expensive valuation and it also scores bad on growth. Finally SR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SR was profitable.
SR had a positive operating cash flow in the past year.
SR had positive earnings in each of the past 5 years.
Each year in the past 5 years SR had a positive operating cash flow.
1.2 Ratios
SR has a Return On Assets of 2.06%. This is in the lower half of the industry: SR underperforms 64.29% of its industry peers.
SR's Return On Equity of 7.01% is on the low side compared to the rest of the industry. SR is outperformed by 64.29% of its industry peers.
SR's Return On Invested Capital of 3.96% is on the low side compared to the rest of the industry. SR is outperformed by 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SR is below the industry average of 7.78%.
The last Return On Invested Capital (3.96%) for SR is above the 3 year average (3.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 7.01% | ||
| ROIC | 3.96% |
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
The Profit Margin of SR (9.26%) is better than 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.
Looking at the Operating Margin, with a value of 19.87%, SR is in line with its industry, outperforming 57.14% of the companies in the same industry.
SR's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.87% | ||
| PM (TTM) | 9.26% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SR is destroying value.
The number of shares outstanding for SR has been increased compared to 1 year ago.
The number of shares outstanding for SR has been increased compared to 5 years ago.
The debt/assets ratio for SR has been reduced compared to a year ago.
2.2 Solvency
SR has an Altman-Z score of 0.73. 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 0.73. This is in the lower half of the industry: SR underperforms 64.29% of its industry peers.
SR has a debt to FCF ratio of 174.31. This is a negative value and a sign of low solvency as SR would need 174.31 years to pay back of all of its debts.
SR has a Debt to FCF ratio (174.31) which is in line with its industry peers.
SR has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
SR has a Debt to Equity ratio of 1.47. This is in the lower half of the industry: SR underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 174.31 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.63
WACC6.24%
2.3 Liquidity
SR has a Current Ratio of 0.50. 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 Current ratio of 0.50. This is in the lower half of the industry: SR underperforms 71.43% of its industry peers.
SR has a Quick Ratio of 0.50. 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 worse Quick ratio (0.37) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.53% over the past year.
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 -3.96%.
SR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.84% yearly.
EPS 1Y (TTM)3.53%
EPS 3Y-4.51%
EPS 5Y2.6%
EPS Q2Q%-8.84%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y5.07%
Revenue growth 5Y5.84%
Sales Q2Q%-11.56%
3.2 Future
SR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.65% yearly.
Based on estimates for the next years, SR will show a small growth in Revenue. The Revenue will grow by 1.72% on average per year.
EPS Next Y9.18%
EPS Next 2Y9.69%
EPS Next 3Y7.96%
EPS Next 5Y6.65%
Revenue Next Year-2.59%
Revenue Next 2Y1.02%
Revenue Next 3Y1.16%
Revenue Next 5Y1.72%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.61 indicates a rather expensive valuation of SR.
The rest of the industry has a similar Price/Earnings ratio as SR.
SR is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.99, SR is valued correctly.
Based on the Price/Forward Earnings ratio, SR is valued a bit cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SR to the average of the S&P500 Index (22.10), we can say SR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
64.29% of the companies in the same industry are cheaper than SR, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 158.85 | ||
| EV/EBITDA | 10.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.03
PEG (5Y)7.17
EPS Next 2Y9.69%
EPS Next 3Y7.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.13%, SR is a good candidate for dividend investing.
SR's Dividend Yield is a higher than the industry average which is at 3.93.
SR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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
80.91% of the earnings are spent on dividend by SR. 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.
DP80.91%
EPS Next 2Y9.69%
EPS Next 3Y7.96%
76.5
+0.55 (+0.72%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.25%
Inst Owner Change2.74%
Ins Owners0.34%
Ins Owner Change0.54%
Market Cap4.46B
Analysts71.11
Price Target75.93 (-0.75%)
Short Float %2.68%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Yearly Dividend3.29
Dividend Growth(5Y)6.49%
DP80.91%
Div Incr Years10
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.13%
Min EPS beat(2)-8.17%
Max EPS beat(2)-0.1%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-9.86%
Max EPS beat(4)16.78%
EPS beat(8)3
Avg EPS beat(8)-4091.72%
EPS beat(12)6
Avg EPS beat(12)-2728.31%
EPS beat(16)9
Avg EPS beat(16)-2039.05%
Revenue beat(2)0
Avg Revenue beat(2)-19.78%
Min Revenue beat(2)-25.44%
Max Revenue beat(2)-14.13%
Revenue beat(4)1
Avg Revenue beat(4)-9.87%
Min Revenue beat(4)-25.44%
Max Revenue beat(4)11.01%
Revenue beat(8)3
Avg Revenue beat(8)-3.44%
Revenue beat(12)7
Avg Revenue beat(12)5.08%
Revenue beat(16)10
Avg Revenue beat(16)6.57%
PT rev (1m)3.18%
PT rev (3m)6.26%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)0.05%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-27.37%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)-2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.61 | ||
| Fwd PE | 14.99 | ||
| P/S | 1.78 | ||
| P/FCF | 158.85 | ||
| P/OCF | 4.83 | ||
| P/B | 1.35 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 10.48 |
EPS(TTM)4.11
EY5.37%
EPS(NY)5.1
Fwd EY6.67%
FCF(TTM)0.48
FCFY0.63%
OCF(TTM)15.83
OCFY20.69%
SpS42.94
BVpS56.71
TBVpS36.63
PEG (NY)2.03
PEG (5Y)7.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 7.01% | ||
| ROCE | 5.36% | ||
| ROIC | 3.96% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 4.46% | ||
| OM | 19.87% | ||
| PM (TTM) | 9.26% | ||
| GM | N/A | ||
| FCFM | 1.12% |
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-Score5
Asset Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 174.31 | ||
| Debt/EBITDA | 6.21 | ||
| Cap/Depr | 315.62% | ||
| Cap/Sales | 35.74% | ||
| Interest Coverage | 2.55 | ||
| Cash Conversion | 118.16% | ||
| Profit Quality | 12.11% | ||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 0.73 |
F-Score5
WACC6.24%
ROIC/WACC0.63
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)3.53%
EPS 3Y-4.51%
EPS 5Y2.6%
EPS Q2Q%-8.84%
EPS Next Y9.18%
EPS Next 2Y9.69%
EPS Next 3Y7.96%
EPS Next 5Y6.65%
Revenue 1Y (TTM)-3.96%
Revenue growth 3Y5.07%
Revenue growth 5Y5.84%
Sales Q2Q%-11.56%
Revenue Next Year-2.59%
Revenue Next 2Y1.02%
Revenue Next 3Y1.16%
Revenue Next 5Y1.72%
EBIT growth 1Y22.15%
EBIT growth 3Y2.74%
EBIT growth 5Y10.07%
EBIT Next Year66.58%
EBIT Next 3Y23.56%
EBIT Next 5Y15.45%
FCF growth 1Y106.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y709.38%
OCF growth 3Y54%
OCF growth 5Y15.14%