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

Fundamentals

Established dividend payer and slightly overvalued.


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


Market Performance


7 Day Return

-0.4%

SR

0.2%

US Gas Utilities

1.0%

US Market


1 Year Return

12.4%

SR

1.9%

US Gas Utilities

8.0%

US Market

Return vs Industry: SR exceeded the US Gas Utilities industry which returned 1.9% over the past year.

Return vs Market: SR exceeded the US Market which returned 8% over the past year.


Shareholder returns

SRIndustryMarket
7 Day-0.4%0.2%1.0%
30 Day-2.4%-1.8%-0.07%
90 Day-0.8%-1.1%-1.0%
1 Year15.7%12.4%4.4%1.9%10.4%8.0%
3 Year51.4%38.3%37.4%27.5%46.2%36.7%
5 Year100.9%71.6%72.3%50.7%64.3%46.2%

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?

22.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SR ($84.16) is trading above our estimate of fair value ($53.34)

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


Price To Earnings Ratio

PE vs Industry: SR is good value based on its PE Ratio (22.3x) compared to the Gas Utilities industry average (25.8x).

PE vs Market: SR is poor value based on its PE Ratio (22.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: SR is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: SR is good value based on its PB Ratio (1.8x) compared to the US Gas Utilities industry average (2.3x).


Next Steps

Future Growth

How is Spire forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SR's forecast earnings growth (5% per year) is above the savings rate (2.7%).

Earnings vs Market: SR's earnings (5% per year) are forecast to grow slower than the US market (14.5% 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 (7.2% 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?

15.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SR's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: SR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SR had negative earnings growth (-15.6%) over the past year, making it difficult to compare to the Gas Utilities industry average (-8.9%).


Return on Equity

High ROE: SR's Return on Equity (7.4%) is considered low.


Return on Assets

ROA vs Industry: SR's Return on Assets is below or equal to the Gas Utilities industry average last year.


Return on Capital Employed

ROCE Improving: SR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Spire's financial position?


Financial Position Analysis

Short Term Liabilities: SR's short term assets ($649.8M) do not cover its short term liabilities ($1.2B)

Long Term Liabilities: SR's short term assets (649.8M) do not cover its long term liabilities (3.5B)


Debt to Equity History and Analysis

Debt Level: SR's debt to equity ratio (101.1%) is considered high

Reducing Debt: SR's debt to equity ratio has increased from 64.5% to 101.1% 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 well covered by EBIT (3x 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 0.2x debt).


Next Steps

Dividend

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

2.82%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SR's dividend (2.82%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SR's dividend (2.82%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (61.9%), 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% payout ratio).


Next Steps

Management

What is the CEO of Spire's salary, the management and board of directors tenure and is there insider trading?

6.5yrs

Average management tenure


CEO

Suzanne Sitherwood (58yo)

7.7yrs

Tenure

US$4,016,839

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 ($USD4.02M) is about average for companies of similar size in the US market ($USD5.12M).

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


Management Age and Tenure

6.5yrs

Average Tenure

59yo

Average Age

Experienced Management: SR's management team is seasoned and experienced (6.5 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

65yo

Average Age

Experienced Board: SR's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Mark Darrell (61yo)

    Senior VP

    • Tenure: 7.4yrs
    • Compensation: US$1.15m
  • Steve Rasche (59yo)

    Executive VP

    • Tenure: 6yrs
    • Compensation: US$1.31m
  • Suzanne Sitherwood (58yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$4.02m
  • Steve Lindsey (53yo)

    Executive VP & CEO of Distribution Operations & Gas Utilities

    • Tenure: 7yrs
    • Compensation: US$1.45m
  • Mike Geiselhart (60yo)

    Senior VP of Strategic Planning & Corporate Development

    • Tenure: 4.8yrs
    • Compensation: US$1.17m
  • Ryan Hyman

    Chief Information Officer & VP of Information Technology Services

    • Tenure: 5.5yrs
  • Scott Dudley

    Managing Director of Investor Relations

    • Tenure: 0yrs
  • Gery Gorla

    Vice President of Human Resources

    • Tenure: 0yrs
  • Jessica Willingham

    Vice President of Communications & Marketing

    • Tenure: 0yrs
  • Tim Goodson

    Vice President of Operations

    • Tenure: 0yrs

Board Members

  • John Stupp (69yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$173.48k
  • Steve Schwartz (60yo)

    Director

    • Tenure: 0.9yrs
  • Mark Borer (65yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$196.81k
  • Mary Ann Van Lokeren (71yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$289.40k
  • Ed Glotzbach (71yo)

    Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$358.52k
  • Maria Fogarty (60yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$194.60k
  • Suzanne Sitherwood (58yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$4.02m
  • Brenda Newberry (66yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$190.86k
  • Rob Jones (60yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: US$173.48k

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$4.276b
  • Shares outstanding: 50.81m
  • 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.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:38
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.