NasdaqGS:SPKE

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and good value.


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 +/- 6% a week.

Volatility Over Time: SPKE's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-7.5%

SPKE

-1.6%

US Electric Utilities

0.6%

US Market


1 Year Return

-13.5%

SPKE

1.8%

US Electric Utilities

22.7%

US Market

Return vs Industry: SPKE underperformed the US Electric Utilities industry which returned 1.7% over the past year.

Return vs Market: SPKE underperformed the US Market which returned 21% over the past year.


Shareholder returns

SPKEIndustryMarket
7 Day-7.5%-1.6%0.6%
30 Day2.3%2.4%13.1%
90 Day4.0%6.5%4.5%
1 Year-6.4%-13.5%5.2%1.8%25.5%22.7%
3 Year-10.6%-28.8%12.3%2.9%49.0%39.1%
5 Year41.3%1.9%51.1%29.4%98.3%76.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPKE ($9.33) is trading below our estimate of fair value ($60.54)

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


Price To Earnings Ratio

PE vs Industry: SPKE is good value based on its PE Ratio (8x) compared to the US Electric Utilities industry average (19.9x).

PE vs Market: SPKE is good value based on its PE Ratio (8x) compared to the US market (19.3x).


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 (2.1x) compared to the US Electric Utilities industry average (1.8x).


Next Steps

Future Growth

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

11.0%

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.


Next Steps

Past Performance

How has Spark Energy performed over the past 5 years?

-3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPKE has high quality earnings.

Growing Profit Margin: SPKE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SPKE's earnings have declined by 3.5% per year over the past 5 years.

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

Earnings vs Industry: SPKE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electric Utilities industry (6.1%).


Return on Equity

High ROE: SPKE's Return on Equity (33.1%) is considered high.


Next Steps

Financial Health

How is Spark Energy's financial position?


Financial Position Analysis

Short Term Liabilities: SPKE's short term assets ($196.8M) exceed its short term liabilities ($83.3M).

Long Term Liabilities: SPKE's short term assets ($196.8M) exceed its long term liabilities ($100.5M).


Debt to Equity History and Analysis

Debt Level: SPKE's debt to equity ratio (56.2%) is considered high.

Reducing Debt: SPKE's debt to equity ratio has reduced from 154.7% to 56.2% over the past 5 years.

Debt Coverage: SPKE's debt is well covered by operating cash flow (99%).

Interest Coverage: SPKE's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Next Steps

Dividend

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

7.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SPKE's dividend (7.77%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: SPKE's dividend (7.77%) is in the top 25% of dividend payers in the US market (4.18%)


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.8%), SPKE's dividend payments are 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?

0.9yrs

Average management tenure


CEO

William Maxwell (55 yo)

0.67

Tenure

US$250,000

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...


Leadership Team

NamePositionTenureCompensationOwnership
William Maxwell
President0.67yrUS$250.00k17.84%
$ 58.7m
James Jones
CFO & Chief Risk Officer1.42yrsUS$952.43k0.38%
$ 1.2m
Kevin McMinn
Chief Operating Officer0.67yrno datano data
Mike Barajas
Investor Relations Professionalno datano datano data
Michael Kuznar
Head of Retail Market1.17yrsno datano data

0.9yrs

Average Tenure

55yo

Average Age

Experienced Management: SPKE's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Maxwell
President0.67yrUS$250.00k17.84%
$ 58.7m
Kenneth Hartwick
Independent Director6.25yrsUS$191.17k0.33%
$ 1.1m
Nick Evans
Independent Director4.5yrsUS$174.93k0.27%
$ 875.1k
Amanda Bush
Independent Director1.25yrsUS$79.27k0.036%
$ 118.8k

5.4yrs

Average Tenure

56yo

Average Age

Experienced Board: SPKE's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SPKE insiders have only sold shares 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$328.765m
  • Market Cap: US$136.473m
  • Shares outstanding: 35.43m
  • Website: https://www.sparkenergy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPKENasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJul 2014
SLEDB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2014
SPKE.PNasdaqGS (Nasdaq Global Select)PFD SER AUSUSDMar 2017

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 Analysis2020/12/02 00:18
End of Day Share Price2020/12/01 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.