Spire Inc. (SR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

New Jersey Resources Corp.

Targa Resources Corp.

Chesapeake Utilities Corp.

Atmos Energy Corp.

Spire Inc.

Cheniere Energy Partners LP

ONE Gas, Inc.

NiSource, Inc.

Southwest Gas Holdings, Inc.

MDU Resources Group, Inc.

New Fortress Energy, Inc.

Why is Spire Inc. ?

Poor long term growth as Operating profit has grown by an annual rate 10.57% of over the last 5 years

With ROCE of 6.13%, it has a very expensive valuation with a 1.10 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 17.11%, its profits have risen by 6.4% ; the PEG ratio of the company is 17.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Spire Inc. should be less than 10%
Overall Portfolio exposure to Gas should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Gas)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Spire Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Spire Inc.

6.68%

1.85

20.08%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.36%

EBIT Growth (5y)

7.31%

EBIT to Interest (avg)

3.15

Debt to EBITDA (avg)

5.98

Net Debt to Equity (avg)

1.35

Sales to Capital Employed (avg)

0.31

Tax Ratio

19.51%

Dividend Payout Ratio

71.83%

Pledged Shares

Institutional Holding

99.11%

ROCE (avg)

6.25%

ROE (avg)

8.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.56

EV to EBIT

19.51

EV to EBITDA

12.51

EV to Capital Employed

1.22

EV to Sales

4.17

PEG Ratio

1.44

Dividend Yield

3.16%

ROCE (Latest)

6.25%

ROE (Latest)

8.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

ROCE(HY)

Highest at 8.47%

DIVIDEND PER SHARE(HY)

Highest at USD 4.91

RAW MATERIAL COST(Y)

Fallen by -4.71% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 9.82 times

NET SALES(Q)

Highest at USD 1,020 MM

OPERATING PROFIT(Q)

Highest at USD 388 MM

OPERATING PROFIT MARGIN(Q)

Highest at 38.04 %

PRE-TAX PROFIT(Q)

Highest at USD 274.2 MM

NET PROFIT(Q)

Highest at USD 220.34 MM

EPS(Q)

Highest at USD 4.6

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 615.6 MM

INTEREST(HY)

At USD 123 MM has Grown at 31.83%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 17.94%

DEBT-EQUITY RATIO (HY)

Highest at 231.31 %

Here's what is working for Spire Inc.

Dividend per share

Highest at USD 4.91 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 1,020 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 388 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 38.04 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 274.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 220.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 4.6

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Highest at 9.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -4.71% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 84.5 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Spire Inc.

Operating Cash Flow

Lowest at USD 615.6 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 123 MM has Grown at 31.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 231.31 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 17.94%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)