ASX:SKI

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Spark Infrastructure Group

Executive Summary

Spark Infrastructure Group is a publicly owned investment manager. More Details


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Spark Infrastructure Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SKI is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SKI's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

SKI

1.1%

AU Electric Utilities

1.7%

AU Market


1 Year Return

-3.7%

SKI

11.4%

AU Electric Utilities

-1.6%

AU Market

Return vs Industry: SKI underperformed the Australian Electric Utilities industry which returned 11.4% over the past year.

Return vs Market: SKI underperformed the Australian Market which returned -1.6% over the past year.


Shareholder returns

SKIIndustryMarket
7 Day1.0%1.1%1.7%
30 Day2.5%2.9%9.5%
90 Day-4.6%9.2%9.2%
1 Year3.0%-3.7%17.4%11.4%1.8%-1.6%
3 Year-2.1%-19.9%50.4%26.4%24.8%9.2%
5 Year49.8%8.9%99.7%49.0%56.1%25.0%

Long-Term Price Volatility Vs. Market

How volatile is Spark Infrastructure Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spark Infrastructure Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKI (A$2.09) is trading below our estimate of fair value (A$4.98)

Significantly Below Fair Value: SKI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SKI is poor value based on its PE Ratio (46.8x) compared to the XO Electric Utilities industry average (41.9x).

PE vs Market: SKI is poor value based on its PE Ratio (46.8x) compared to the Australian market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: SKI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SKI's PB Ratio (2.3x) is in line with the XO Electric Utilities industry average.


Next Steps

Future Growth

How is Spark Infrastructure Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKI's earnings are forecast to decline over the next 3 years (-17% per year).

Earnings vs Market: SKI's earnings are forecast to decline over the next 3 years (-17% per year).

High Growth Earnings: SKI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SKI's revenue is expected to decline over the next 3 years (-9.7% per year).

High Growth Revenue: SKI's revenue is forecast to decline over the next 3 years (-9.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKI's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has Spark Infrastructure Group performed over the past 5 years?

-25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKI has high quality earnings.

Growing Profit Margin: SKI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SKI's earnings have declined by 25.6% per year over the past 5 years.

Accelerating Growth: SKI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SKI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electric Utilities industry (-21.9%).


Return on Equity

High ROE: SKI's Return on Equity (4.8%) is considered low.


Next Steps

Financial Health

How is Spark Infrastructure Group's financial position?


Financial Position Analysis

Short Term Liabilities: SKI's short term assets (A$144.0M) exceed its short term liabilities (A$90.3M).

Long Term Liabilities: SKI's short term assets (A$144.0M) do not cover its long term liabilities (A$1.4B).


Debt to Equity History and Analysis

Debt Level: SKI's debt to equity ratio (80.5%) is considered high.

Reducing Debt: SKI's debt to equity ratio has increased from 49.2% to 80.5% over the past 5 years.

Debt Coverage: SKI's debt is not well covered by operating cash flow (13.6%).

Interest Coverage: SKI's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is Spark Infrastructure Group current dividend yield, its reliability and sustainability?

6.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKI's dividend (6.7%) is higher than the bottom 25% of dividend payers in the Australian market (2.06%).

High Dividend: SKI's dividend (6.7%) is in the top 25% of dividend payers in the Australian market (5.1%)


Stability and Growth of Payments

Stable Dividend: SKI's dividend payments have been volatile in the past 10 years.

Growing Dividend: SKI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (324.6%), SKI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SKI's dividends in 3 years are not forecast to be well covered by earnings (311% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Rick Francis (51 yo)

8.5yrs

Tenure

AU$1,644,771

Compensation

Mr. Richard F. Francis, also known as Rick, B.Com., M.B.A., C.A., MAICD, GAICD, FAICD, has been Chief Executive Officer and Managing Director of Spark Infrastructure Group since May 31, 2012. Mr. Francis h...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD1.21M) is below average for companies of similar size in the Australian market ($USD1.87M).

Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Francis
MD, CEO & Executive Director8.5yrsAU$1.64m0.039%
A$ 1.4m
Gerard Dover
Chief Financial Officer1.08yrsAU$522.76k0.0070%
A$ 254.8k
Neil Donaldson
Head of Investor Relationsno datano datano data
Alexandra Finley
General Counsel & Company Secretary12.17yrsAU$766.02kno data
Sally McMahon
Head of Economic Regulation & Energy Policy1.75yrsno datano data
Anthony Marriner
Head of Renewablesno datano datano data

5.1yrs

Average Tenure

Experienced Management: SKI's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Francis
MD, CEO & Executive Director8.5yrsAU$1.64m0.039%
A$ 1.4m
Douglas McTaggart
Independent Chairman4.5yrsAU$303.00k0.015%
A$ 539.1k
Gregory John Martin
Independent Director3.83yrsAU$152.36k0.0057%
A$ 209.9k
Andrew Fay
Independent Director10.67yrsAU$149.90k0.014%
A$ 501.1k
Anne Brennan
Non-Executive Director0.42yrno data0.0029%
A$ 105.1k
Miles George
Independent Director1.08yrsAU$28.94k0.012%
A$ 420.1k

3.8yrs

Average Tenure

60yo

Average Age

Experienced Board: SKI's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SKI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

Spark Infrastructure Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spark Infrastructure Group
  • Ticker: SKI
  • Exchange: ASX
  • Founded:
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: AU$3.650b
  • Shares outstanding: 1.74b
  • Website: https://www.sparkinfrastructure.com

Number of Employees


Location

  • Spark Infrastructure Group
  • 225 George Street
  • Level 29
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKIASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDMar 2007
SFDP.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDMar 2007
02SDB (Deutsche Boerse AG)YesStapled SecuritiesDEEURMar 2007
SKICHIA (Chi-X Australia)YesStapled SecuritiesAUAUDMar 2007

Biography

Spark Infrastructure Group is a publicly owned investment manager. The firm invests in the regulated utility infrastructure markets across the globe. It aims for a balanced portfolio. The firm's earnings a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 07:03
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.