ASX:SKI

Stock Analysis Report

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Spark Infrastructure Group

Market Cap

AU$3.9b

Last Updated

2021/06/23 08:00 UTC

Data Sources

Company Financials +

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 +/- 2% a week.

Volatility Over Time: SKI's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-3.5%

SKI

-1.4%

AU Electric Utilities

-0.7%

AU Market


1 Year Return

-0.9%

SKI

10.3%

AU Electric Utilities

26.8%

AU Market

Return vs Industry: SKI underperformed the Australian Electric Utilities industry which returned 10.3% over the past year.

Return vs Market: SKI underperformed the Australian Market which returned 26.8% over the past year.


Shareholder returns

SKIIndustryMarket
7 Day-3.5%-1.4%-0.7%
30 Day1.4%3.3%4.0%
90 Day0.5%2.8%7.6%
1 Year5.3%-0.9%15.8%10.3%31.0%26.8%
3 Year16.1%-4.8%18.9%3.3%34.0%17.9%
5 Year24.2%-9.9%64.7%30.9%73.0%41.2%

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?

35.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SKI (A$2.2) is trading above our estimate of fair value (A$1.32)

Significantly Below Fair Value: SKI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SKI is good value based on its PE Ratio (36.1x) compared to the Oceanic Electric Utilities industry average (37.5x).

PE vs Market: SKI is poor value based on its PE Ratio (36.1x) compared to the Australian market (20.4x).


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 is overvalued based on its PB Ratio (2.4x) compared to the XO Electric Utilities industry average (2.2x).


Future Growth

How is Spark Infrastructure Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-50.4%

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 (-50.4% per year).

Earnings vs Market: SKI's earnings are forecast to decline over the next 3 years (-50.4% 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 (-0.2% per year).

High Growth Revenue: SKI's revenue is forecast to decline over the next 3 years (-0.2% 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%).


Past Performance

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

-14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKI has high quality earnings.

Growing Profit Margin: SKI's current net profit margins (38.5%) are higher than last year (29%).


Past Earnings Growth Analysis

Earnings Trend: SKI's earnings have declined by 14.9% per year over the past 5 years.

Accelerating Growth: SKI's earnings growth over the past year (32.7%) exceeds its 5-year average (-14.9% per year).

Earnings vs Industry: SKI earnings growth over the past year (32.7%) exceeded the Electric Utilities industry 7.4%.


Return on Equity

High ROE: SKI's Return on Equity (6.6%) is considered low.


Financial Health

How is Spark Infrastructure Group's financial position?


Financial Position Analysis

Short Term Liabilities: SKI's short term assets (A$93.1M) do not cover its short term liabilities (A$145.8M).

Long Term Liabilities: SKI's short term assets (A$93.1M) do not cover its long term liabilities (A$1.3B).


Debt to Equity History and Analysis

Debt Level: SKI's debt to equity ratio (71.5%) is considered high.

Reducing Debt: SKI's debt to equity ratio has increased from 58.5% to 71.5% over the past 5 years.