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Spire Inc (SR)
:SR
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Spire
(NYSE:SR)
75Outperform
Positive Factors
Midstream investments
Recent investments in midstream activities, such as transportation and storage of natural gas, offer a promising source of high-quality earnings in the future.
Regulatory environment
Spire primarily operates in states with relatively constructive regulatory environments, which supports its earnings stability.
Negative Factors
Weather impact
Underperformance in FY24 was driven by warm winter weather, higher interest rates, and underperformance in Gas Marketing.
Spire (SR) vs. S&P 500 (SPY)
Market Cap
$4.40B
Dividend Yield4.05%
Average Volume (3M)440.65K
Price to Earnings (P/E)18.3
Beta (1Y)0.46
Revenue Growth-3.96%
EPS Growth11.40%
CountryUS
Employees3,475
SectorUtilities
Sector Strength83
IndustryRegulated Utilities
Share Statistics
EPS (TTM)4.13
Shares Outstanding58,345,840
10 Day Avg. Volume479,125
30 Day Avg. Volume440,647
Financial Highlights & Ratios
PEG Ratio1.60
Price to Book (P/B)N/A
Price to Sales (P/S)1.75
Price to Cash Flow (P/CF)13.60
P/FCF Ratio9.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$72.88Price Target Upside-2.84% Downside
Rating ConsensusHold
Number of Analyst Covering8
Spire Business Overview & Revenue Model
Company DescriptionSpire Global, Inc. (SR) is a space-to-cloud data and analytics company that specializes in collecting, analyzing, and providing data gathered from its proprietary network of nanosatellites. Operating primarily in the sectors of maritime, aviation, and weather, Spire offers unique insights and solutions to businesses and government entities. Its core services involve satellite-powered data solutions that enable customers to improve operational efficiencies, enhance safety, and make informed decisions in real-time.
How the Company Makes MoneySpire makes money through a subscription-based revenue model where customers pay for access to its data and analytics services. The company's key revenue streams include data subscriptions, analytics services, and custom data solutions tailored to specific customer needs in the maritime, aviation, and weather sectors. Significant partnerships with governmental agencies and commercial enterprises contribute to its earnings by expanding its customer base and enhancing its product offerings. Additionally, Spire may engage in strategic collaborations with technological partners to leverage its satellite infrastructure for broader market applications.
Spire Financial Statement Overview
Summary
Spire demonstrates solid financial health characterized by strong cash flow generation and stable profitability metrics. However, there is a need to focus on boosting revenue growth and maintaining margins for sustained long-term performance.Income Statement
Spire shows a stable gross profit margin, indicating strong control over cost of goods sold relative to revenue. However, revenue growth has been slightly inconsistent, with a decline in the latest TTM period compared to the previous annual figure. Net profit margin is healthy, though there was a slight decrease in comparison to the prior annual period.75
Positive
Balance Sheet
The company's debt-to-equity ratio appears moderate, showing a balanced approach to leverage. Return on equity is satisfactory, reflecting decent profitability relative to shareholder investments. However, the equity ratio suggests a substantial portion of assets are financed by liabilities, which could pose risks if not managed carefully.70
Positive
Cash Flow
Operating cash flow is strong relative to net income, indicating efficient cash generation from operations. Free cash flow growth has been positive in the TTM period, a significant improvement from previous years, highlighting better cash management and potential for reinvestment or debt reduction.80
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.51B | 2.59B | 2.67B | 2.20B | 2.24B | 1.86B | Gross Profit |
| 1.25B | 2.09B | 887.90M | 825.00M | 823.40M | 700.70M | EBIT |
| 497.90M | 488.30M | 418.60M | 408.20M | 450.20M | 355.10M | EBITDA |
| 787.10M | 789.10M | 694.40M | 636.80M | 659.90M | 403.80M | Net Income Common Stockholders |
| 247.10M | 250.90M | 217.50M | 220.80M | 271.70M | 88.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.50M | 4.50M | 5.60M | 6.50M | 4.30M | 4.10M | Total Assets |
| 11.28B | 10.86B | 10.31B | 10.08B | 9.36B | 8.24B | Total Debt |
| 1.20B | 4.69B | 4.67B | 4.28B | 3.67B | 3.13B | Net Debt |
| 1.19B | 4.69B | 4.66B | 4.27B | 3.66B | 3.13B | Total Liabilities |
| 7.96B | 7.63B | 7.40B | 7.25B | 6.70B | 5.72B | Stockholders Equity |
| 3.31B | 3.23B | 2.92B | 2.82B | 2.66B | 2.52B |
| Cash Flow | Free Cash Flow | ||||
| 28.10M | 51.10M | -222.30M | -497.20M | -375.00M | -168.50M | Operating Cash Flow |
| 923.50M | 912.40M | 440.20M | 55.00M | 249.80M | 469.90M | Investing Cash Flow |
| -1.06B | -1.03B | -695.50M | -546.70M | -622.00M | -631.60M | Financing Cash Flow |
| 155.20M | 123.90M | 260.60M | 500.90M | 379.40M | 160.00M |
Spire Technical Analysis
Positive
75.01
Price Trends
70.94
Positive
68.51
Positive
65.05
Positive
Market Momentum
1.36
Positive
59.26
Neutral
19.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SR, the sentiment is Positive. The current price of 75.01 is above the 20-day moving average (MA) of 74.63, above the 50-day MA of 70.94, and above the 200-day MA of 65.05, indicating a bullish trend. The MACD of 1.36 indicates Positive momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 19.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SR.
Spire Risk Analysis
Spire disclosed 29 risk factors in its most recent earnings report. Spire reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Spire Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $23.60B | 21.26 | 9.00% | 2.25% | 5.90% | 11.85% | |
75 Outperform | $4.40B | 18.26 | 7.76% | 4.05% | -3.96% | 11.40% | |
75 Outperform | $4.40B | 18.82 | 7.59% | 3.60% | -12.16% | -5.73% | |
71 Outperform | $18.24B | 23.98 | 8.95% | 2.77% | -0.91% | 2.11% | |
65 Neutral | $11.99B | 15.63 | 6.50% | 4.40% | 7.00% | 0.55% | |
64 Neutral | $1.67B | 20.44 | 5.91% | 4.71% | -3.71% | -21.36% | |
64 Neutral | $44.81B | 15.73 | 9.55% | 3.60% | -18.00% | -7.54% |
* Utilities Sector Average
Performance Comparison
SR
Spire
75.01
17.87
31.27%
ATO
Atmos Energy
147.16
35.09
31.31%
NI
Nisource
39.04
13.54
53.10%
NWN
Northwest Gas
40.96
6.54
19.00%
SRE
Sempra Energy
68.95
0.89
1.31%
OGS
ONE Gas
72.60
13.50
22.84%
Spire Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 6.67% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the company's growth in utility and midstream segments, progress in regulatory matters, and reaffirmation of long-term growth targets. However, these positive aspects were balanced by challenges such as decreased adjusted earnings, lower gas marketing earnings, and adverse weather impacts. Despite these challenges, Spire remains committed to its growth and investment plans.Highlights
CEO Steve Lindsey's Return
Steve Lindsey, Spire Inc.'s President and CEO, will return to work on February 10th after a leave of absence, indicating stability in leadership.
Growth in Utility and Midstream Segments
The company experienced growth in its utility and midstream segments, driven by investments in natural gas infrastructure and cost management.
Regulatory Progress in Missouri and Alabama
New infrastructure system replacement surcharge request in Missouri for additional revenues of $19 million and approved fiscal 2025 budgets for Spire Alabama and Spire Gulf.
Long-term Growth Targets Reaffirmed
Reaffirmation of long-term EPS growth target of 5% to 7% and fiscal 2025 earnings guidance of $4.40 to $4.60 per share.
Capital Investment Plans
First quarter CapEx totaled $260 million, with a focus on upgrading distribution infrastructure and connecting more homes and businesses.
Lowlights
Decrease in Adjusted Earnings
Adjusted earnings declined to $1.34 per share from $1.47 per share a year ago.
Lower Earnings in Gas Marketing Segment
The gas marketing segment experienced lower earnings due to reduced market volatility and higher transportation storage fees.
Weather Impact on Missouri and Alabama
Missouri was 18% warmer and Alabama was 25% warmer than normal, leading to lower utility usage and volumetric margins.
Higher Corporate Costs
Other corporate costs were higher due to the absence of a $6.3 million after-tax benefit from an interest rate hedge settlement and increased interest expenses.
Company Guidance
During Spire Inc.'s fiscal 2025 first quarter earnings call, guidance was provided on several key metrics and strategic priorities. The company reaffirmed its long-term EPS growth target of 5% to 7% and fiscal 2025 earnings guidance of $4.40 to $4.60 per share. The ten-year capital expenditure plan remains at $7.4 billion, with a focus on infrastructure modernization and system reliability. Spire reported adjusted earnings of $1.34 per share for the first quarter, down from $1.47 per share the previous year, due to mixed performance across its segments. The company filed a rate case requesting $289.5 million in increased revenues, with anticipated new rates by October 2025. Spire also highlighted its commitment to maintaining flat run-rate O&M expenses relative to fiscal 2024 and plans to invest $790 million in fiscal 2025. The company is focused on achieving regulatory outcomes that support sustainable financial growth and improving earned returns in Missouri by FY 2026.Spire Corporate Events
Financial Disclosures
Spire Reports Q1 2025 Earnings Decline Amid Growth
Negative
Feb 5, 2025
On February 5, 2025, Spire Inc. announced its fiscal 2025 first-quarter results, reporting a net income of $81.3 million, a decrease from $85.1 million the previous year. The company’s adjusted earnings per share were $1.34, down by $0.13 compared to the last year. The Gas Utility segment showed growth due to higher earnings at Spire Alabama and Spire Gulf, but this was partially offset by lower Spire Missouri usage and increased depreciation expenses. The Midstream segment benefited from increased capacity and contract renewals, while Gas Marketing earnings were impacted by market conditions. Spire reaffirmed its fiscal 2025 earnings guidance, expecting a range of $4.40 to $4.60 per share, with long-term growth driven by significant capital investments in infrastructure upgrades.
Executive/Board Changes
Spire CEO Steven Lindsey to Return in 2025
Neutral
Feb 3, 2025
Spire Inc. announced that their President and CEO, Steven L. Lindsey, who also serves as CEO of Spire Alabama Inc. and Spire Missouri Inc., will return from a health-related leave of absence on February 10, 2025. During Mr. Lindsey’s absence, his responsibilities were assumed by Scott E. Doyle, the Executive Vice President and Chief Operating Officer, who will continue in his role after Mr. Lindsey’s return.
Executive/Board Changes
Spire CEO Takes Health-Related Leave of Absence
Neutral
Jan 6, 2025
Steven L. Lindsey, President and CEO of Spire Inc., has taken an indefinite leave of absence due to health reasons. Scott E. Doyle, the company’s Executive Vice President and Chief Operating Officer, will assume Lindsey’s responsibilities during his absence, with no expected negative impact on company operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.