Spok Holdings, Inc (SPOK) stock analysis

P/E below its 5-year median

Spok's P/E of 13.3 is below its own 5-year median of 18.1.

P/E above the industry

Spok's P/E of 13.3 is above the Telephone Communications median of 13.3.

EV/EBITDA below its 5-year median

Spok's EV/EBITDA of 10.3 is below its 5-year median of 12.0.

P/B below the industry

Spok's price-to-book of 1.71 is below the Telephone Communications median of 1.76.

Trading below fair value

The share price of $11.84 is below our fair value estimate of $13.13.

Margin of safety under 20%

The price is 9.8% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -11.7% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -3.3% over the last twelve months; the Telephone Communications median is 5.5%.

Guidance raised

Spok raised its full year 2026 Total Revenue outlook on Apr 29, 2026.

Gross margin slipping

Gross margin was 78.6% over the last twelve months, against 79.0% a year earlier.

Return on equity under 15%

Return on equity was 12.8% over the last twelve months and averaged 6.0% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 10.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Spok's return on equity of 12.8% is above the Telephone Communications median of 8.4%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 13.9% over the last twelve months, against a 5-year average of 6.8%.

Net margin above the industry

Spok's net margin of 13.9% is above the Telephone Communications median of 6.5%.

No debt

Spok has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.29 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.06; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Spok paid dividends worth 10.6% of the share price over the last twelve months.

Yield above Treasuries

The 10.6% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Spok yields 10.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 146% of net income, leaving little room.

Not covered by free cash flow

Dividends take 91.2% of free cash flow.