TSX:SPG

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Spark Power Group

Executive Summary

Spark Power Group Inc. provides electrical power services in North America. More Details


Snowflake Analysis

Proven track record and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SPG is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SPG's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

15.9%

SPG

-0.1%

CA Renewable Energy

0.7%

CA Market


1 Year Return

49.6%

SPG

61.0%

CA Renewable Energy

2.1%

CA Market

Return vs Industry: SPG underperformed the Canadian Renewable Energy industry which returned 61% over the past year.

Return vs Market: SPG exceeded the Canadian Market which returned 2.1% over the past year.


Shareholder returns

SPGIndustryMarket
7 Day15.9%-0.1%0.7%
30 Day45.5%14.8%4.6%
90 Day37.9%25.0%13.5%
1 Year49.6%49.6%67.4%61.0%5.8%2.1%
3 Yearn/a147.9%114.8%13.9%3.1%
5 Yearn/a251.3%174.6%67.3%41.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Spark Power 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: SPG (CA$2.11) is trading below our estimate of fair value (CA$16.5)

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


Price To Earnings Ratio

PE vs Industry: SPG is poor value based on its PE Ratio (40.5x) compared to the CA Renewable Energy industry average (19.9x).

PE vs Market: SPG is poor value based on its PE Ratio (40.5x) compared to the Canadian market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPG is overvalued based on its PB Ratio (2.8x) compared to the CA Renewable Energy industry average (2.6x).


Next Steps

Future Growth

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

6.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SPG's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if SPG's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SPG's revenue (6.2% per year) is forecast to grow slower than the Canadian market (8% per year).

High Growth Revenue: SPG's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SPG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPG has a large one-off loss of CA$4.8M impacting its September 30 2020 financial results.

Growing Profit Margin: SPG's current net profit margins (1.3%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: SPG has become profitable over the past 5 years, growing earnings by 9% per year.

Accelerating Growth: SPG's earnings growth over the past year (995%) exceeds its 5-year average (9% per year).

Earnings vs Industry: SPG earnings growth over the past year (995%) exceeded the Renewable Energy industry 20.7%.


Return on Equity

High ROE: SPG's Return on Equity (7%) is considered low.


Next Steps

Financial Health

How is Spark Power Group's financial position?


Financial Position Analysis

Short Term Liabilities: SPG's short term assets (CA$92.5M) exceed its short term liabilities (CA$86.9M).

Long Term Liabilities: SPG's short term assets (CA$92.5M) exceed its long term liabilities (CA$78.4M).


Debt to Equity History and Analysis

Debt Level: SPG's debt to equity ratio (255.1%) is considered high.

Reducing Debt: Insufficient data to determine if SPG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SPG's debt is not well covered by operating cash flow (4%).

Interest Coverage: SPG's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SPG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SPG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SPG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SPG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SPG's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Rich Jackson (46 yo)

no data

Tenure

CA$362,069

Compensation

Mr. Richard Stanley Jackson, also known as Rich, has been Chief Executive Officer at Spark Power Group Inc. since January 5, 2021 and its President since August 31, 2018. He serves as Managing Director of ...


CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD286.86K) is above average for companies of similar size in the Canadian market ($USD153.85K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jason Sparaga
Co-Founder & Executive Board Chairno dataCA$532.51k22.04%
CA$ 25.3m
Richard Jackson
President & CEOno dataCA$362.07k0.37%
CA$ 430.2k
Eric Waxman
Co-Founder12yrsCA$416.33k2.57%
CA$ 2.9m
Daniel Ardila
Chief Financial Officer3.67yrsCA$378.15k0.69%
CA$ 792.3k
Ron Dizy
Chief Commercial Officer1.75yrsCA$382.84k0.24%
CA$ 278.2k
Amin Kassam
EVP of Global Business Developmentno datano datano data
Philip Lefko
General Counselno datano datano data
Kim Samlall
Director of Marketing Communicationsno datano datano data
Najlaa Rauf
Director of People & Cultureno datano datano data
Sean Kelly
Executive Vice President of Integrationsno datano datano data
Morgan Cowl
Executive Vice President of Operationsno datano data1.67%
CA$ 1.9m
Roland Olst
Executive Vice President of Eastern Canada3yrsno datano data

3.7yrs

Average Tenure

50yo

Average Age

Experienced Management: SPG's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jason Sparaga
Co-Founder & Executive Board Chairno dataCA$532.51k22.04%
CA$ 25.3m
Lucio Di Clemente
Independent Director1.08yrsCA$2.28k0.047%
CA$ 53.5k
Joseph Quarin
Independent Director2.42yrsCA$81.63k1.78%
CA$ 2.0m
Andrew Clark
Co-Founder & Vice Board Chairno dataCA$532.51k22.04%
CA$ 25.3m
Kurt Strobele
Member of Advisory Boardno datano datano data
Larry Taylor
Independent Chairman & Lead Independent Director2.42yrsCA$93.71k0.96%
CA$ 1.1m
Daniel Péloquin
Independent Director2.42yrsCA$110.42k0.40%
CA$ 455.0k

2.4yrs

Average Tenure

51yo

Average Age

Experienced Board: SPG's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.


Top Shareholders

Company Information

Spark Power Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spark Power Group Inc.
  • Ticker: SPG
  • Exchange: TSX
  • Founded: 2009
  • Industry: Renewable Electricity
  • Sector: Utilities
  • Market Cap: CA$114.810m
  • Shares outstanding: 53.65m
  • Website: https://sparkpowercorp.com

Number of Employees


Location

  • Spark Power Group Inc.
  • 1315 North Service Road East
  • Suite 300
  • Oakville
  • Ontario
  • L6H 1A7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPGTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 2018
S12DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2018
SKPG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2018

Biography

Spark Power Group Inc. provides electrical power services in North America. The company operates through Technical Services, Renewables, and Sustainability Solutions segments. The Technical Services segmen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 23:02
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
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.