NasdaqGS:SPKE

Stock Analysis Report

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Market Cap

US$407.3m

Last Updated

2021/07/23 01:54 UTC

Data Sources

Company Financials

Executive Summary

Spark Energy, Inc., through its subsidiaries, operates as an independent retail energy services company in the United States. More Details


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SPKE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SPKE's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

SPKE

-1.0%

US Electric Utilities

0.4%

US Market


1 Year Return

52.1%

SPKE

8.4%

US Electric Utilities

36.9%

US Market

Return vs Industry: SPKE exceeded the US Electric Utilities industry which returned 8.2% over the past year.

Return vs Market: SPKE exceeded the US Market which returned 35.1% over the past year.


Shareholder returns

SPKEIndustryMarket
7 Day-2.8%-1.0%0.4%
30 Day4.5%1.8%1.6%
90 Day10.8%-1.8%2.7%
1 Year63.3%52.1%12.1%8.4%39.1%36.9%
3 Year53.9%23.1%22.4%12.1%61.0%51.0%
5 Year30.6%-6.6%26.9%9.2%122.5%97.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SPKE ($11.45) is trading above our estimate of fair value ($6.95)

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


Price To Earnings Ratio

PE vs Industry: SPKE is good value based on its PE Ratio (18x) compared to the US Electric Utilities industry average (21.2x).

PE vs Market: SPKE is good value based on its PE Ratio (18x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SPKE is overvalued based on its PB Ratio (3.2x) compared to the US Electric Utilities industry average (2x).


Future Growth

How is Spark Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.6%

Forecasted Utilities industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Spark Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Spark Energy performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPKE has high quality earnings.

Growing Profit Margin: SPKE's current net profit margins (1.9%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: SPKE's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: SPKE's earnings growth over the past year (102.7%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: SPKE earnings growth over the past year (102.7%) exceeded the Electric Utilities industry 12.6%.


Return on Equity

High ROE: Whilst SPKE's Return on Equity (22.24%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Spark Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SPKE's short term assets ($200.4M) exceed its short term liabilities ($81.6M).

Long Term Liabilities: SPKE's short term assets ($200.4M) exceed its long term liabilities ($145.2M).


Debt to Equity History and Analysis

Debt Level: SPKE's debt to equity ratio (105.3%) is considered high.

Reducing Debt: SPKE's debt to equity ratio has increased from 68.5% to 105.3% over the past 5 years.

Debt Coverage: SPKE's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: SPKE's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet


Dividend

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

6.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPKE's dividend (6.33%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: SPKE's dividend (6.33%) is in the top 25% of dividend payers in the US market (3.52%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SPKE has been paying a dividend for less than 10 years.

Growing Dividend: SPKE's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.1%), SPKE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

William Maxwell (56 yo)

1.33yrs

Tenure

US$274,926

Compensation

Mr. William Keith Maxwell, III was Founder and Chief Executive Officer of Spark Energy Gas L.P. since 1999. Mr. Maxwell served as the President at Spark Energy Gas L.P. Mr. Maxwell has been the Executive C...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD274.93K) is below average for companies of similar size in the US market ($USD1.72M).

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


Leadership Team

Experienced Management: SPKE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SPKE's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Spark Energy, Inc.
  • Ticker: SPKE
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: US$407.304m
  • Market Cap: US$169.144m
  • Shares outstanding: 35.57m
  • Website: https://www.sparkenergy.com

Number of Employees


Location

  • Spark Energy, Inc.
  • 12140 Wickchester Lane
  • Suite 100
  • Houston
  • Texas
  • 77079
  • United States

Listings


Biography

Spark Energy, Inc., through its subsidiaries, operates as an independent retail energy services company in the United States. It operates through two segments, Retail Electricity and Retail Natural Gas. Th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 01:54
End of Day Share Price2021/07/22 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.