NYSE:SR

Stock Analysis Report

Executive Summary

Spire Inc., through its subsidiaries, engages in the purchase, retail distribution, and sale of natural gas to residential, commercial, industrial, and other end-users of natural gas in the United States.


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

SR

-0.4%

US Gas Utilities

0.06%

US Market


1 Year Return

12.0%

SR

-2.0%

US Gas Utilities

19.3%

US Market

Return vs Industry: SR exceeded the US Gas Utilities industry which returned -2% over the past year.

Return vs Market: SR underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

SRIndustryMarket
7 Day0.6%-0.4%0.06%
30 Day3.6%0.2%1.7%
90 Day13.1%4.8%9.0%
1 Year15.4%12.0%0.7%-2.0%21.8%19.3%
3 Year45.8%33.2%20.9%12.1%49.5%39.9%
5 Year97.0%68.5%70.1%48.7%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SR ($87.18) is trading above our estimate of fair value ($59.62)

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


Price To Earnings Ratio

PE vs Industry: SR is poor value based on its PE Ratio (25.3x) compared to the Gas Utilities industry average (24.3x).

PE vs Market: SR is poor value based on its PE Ratio (25.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SR is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: SR is good value based on its PB Ratio (1.9x) compared to the US Gas Utilities industry average (2.2x).


Next Steps

Future Growth

How is Spire forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SR's forecast earnings growth (8.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SR's earnings (8.2% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: SR's earnings are forecast to grow, but not significantly.

Revenue vs Market: SR's revenue (1.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SR's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SR's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Spire performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SR has high quality earnings.

Growing Profit Margin: SR's current net profit margins (9.1%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: SR's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: SR's earnings growth over the past year (5.9%) is below its 5-year average (10.8% per year).

Earnings vs Industry: SR earnings growth over the past year (5.9%) exceeded the Gas Utilities industry -2%.


Return on Equity

High ROE: SR's Return on Equity (7.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spire's financial position?


Financial Position Analysis

Short Term Liabilities: SR's short term assets ($776.4M) do not cover its short term liabilities ($1.3B).

Long Term Liabilities: SR's short term assets ($776.4M) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: SR's debt to equity ratio (117.9%) is considered high.

Reducing Debt: SR's debt to equity ratio has reduced from 146.4% to 117.9% over the past 5 years.

Debt Coverage: SR's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: SR's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: SR has a high level of physical assets or inventory.

Debt Coverage by Assets: SR's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Spire's current dividend yield, its reliability and sustainability?

2.86%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Spire before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: SR's dividend (2.86%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SR's dividend (2.86%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: SR's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.7%), SR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SR's dividends in 3 years are forecast to be covered by earnings (59.9% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Suzanne Sitherwood (58yo)

8yrs

Tenure

US$4,515,589

Compensation

Ms. Suzanne Sitherwood has been the Chief Executive Officer of Spire Inc. (formerly, The Laclede Group, Inc.) since February 1, 2012 and has been its President since September 1, 2011. With more than 36 ye ...


CEO Compensation Analysis

Compensation vs Market: Suzanne's total compensation ($USD4.52M) is about average for companies of similar size in the US market ($USD4.88M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Suzanne Sitherwood
President8yrsUS$4.52m0.24% $10.6m
Steven Rasche
Executive VP6.3yrsUS$1.40m0.067% $3.0m
Steven Lindsey
Executive VP & COO0.08yrsUS$1.63m0.083% $3.7m
Mark Darrell
Senior VP and Chief Legal & Compliance Officer7.8yrsUS$1.25m0.11% $4.8m
Michael Geiselhart
Senior VP and Chief Strategy & Corporate Development Officer5.1yrsUS$1.27m0.052% $2.3m
Ryan Hyman
Chief Information Officer & VP of Information Technology Services5.8yrsno datano data
Scott Dudley
Managing Director of Investor Relations0yrsno datano data
Jessica Willingham
Vice President of Communications & Marketing0yrsno datano data
Gerard Gorla
Vice President of Human Resources0yrsno datano data
Scott Carter
Senior VP & COO of Distribution Operations0yrsno data0.0099% $441.2k

6.1yrs

Average Tenure

58.5yo

Average Age

Experienced Management: SR's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Suzanne Sitherwood
President8yrsUS$4.52m0.24% $10.6m
John Stupp
Independent Director15.1yrsUS$212.44k0.034% $1.5m
Stephen Schwartz
Independent Director1.3yrsUS$212.44k0.0029% $128.2k
Mark Borer
Independent Director6yrsUS$238.04k0.021% $950.1k
Mary Ann Van Lokeren
Independent Director20.1yrsUS$326.35k0.054% $2.4m
Edward Glotzbach
Independent Chairman of the Board5.1yrsUS$410.74k0.055% $2.4m
Maria Fogarty
Independent Director5.5yrsUS$233.56k0.022% $979.0k
Brenda Newberry
Independent Director13.1yrsUS$229.69k0.043% $1.9m
Rob Jones
Independent Director4yrsUS$222.44k0.015% $647.8k

6.0yrs

Average Tenure

65yo

Average Age

Experienced Board: SR'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: 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 2.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Spire Inc.
  • Ticker: SR
  • Exchange: NYSE
  • Founded: 1857
  • Industry: Gas Utilities
  • Sector: Utilities
  • Market Cap: US$4.452b
  • Shares outstanding: 51.07m
  • Website: https://www.spireenergy.com

Number of Employees


Location

  • Spire Inc.
  • 700 Market Street
  • St. Louis
  • Missouri
  • 63101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1964
LGRDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1964
SR.PRANYSE (New York Stock Exchange)5.9 DEP RP PFD AUSUSDMay 2019

Biography

Spire Inc., through its subsidiaries, engages in the purchase, retail distribution, and sale of natural gas to residential, commercial, industrial, and other end-users of natural gas in the United States. The company operates in two segments, Gas Utility and Gas Marketing. It is also involved in marketing natural gas; and provision of energy services on non-regulated basis to on-system utility transportation customers, as well as to retail and wholesale customers. In addition, the company engages in the transportation of propane through its propane pipeline; compression of natural gas; risk management; and other activities. Further, it provides physical natural gas storage services. The company was formerly known as The Laclede Group, Inc. and changed its name to Spire Inc. in April 2016. Spire Inc. was founded in 1857 and is based in St. Louis, Missouri. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:39
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.