Spire Inc (SR) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Spire's EV/EBITDA of 13.2 is above its 5-year median of 11.4.

P/B below the industry

Spire's price-to-book of 1.46 is below the Gas Production and Distribution median of 2.10.

Trading above fair value

The share price of $88.27 is above our fair value estimate of $76.92.

Margin of safety under 20%

The price is 14.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 3.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 92.1% over the last twelve months, against a 5-year average of 25.1% a year.

Growing faster than the industry

Revenue grew 19.2% over the last twelve months; the Gas Production and Distribution median is 13.6%.

Guidance lowered

Spire lowered its fiscal 2027 adjusted EPS outlook on May 6, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 15.5% over the last twelve months and averaged 8.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.2%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Spire's return on equity of 15.5% is above the Gas Production and Distribution median of 12.1%.

Earnings grew over 5 years

Net income grew 25.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 20.1% over the last twelve months, against a 5-year average of 10.2%.

Net margin above the industry

Spire's net margin of 20.1% is above the Gas Production and Distribution median of 13.1%.

High debt

Debt is 196% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 98.5% five years ago to 196%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 8.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.2 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.37 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.67; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Spire paid dividends worth 3.7% of the share price over the last twelve months.

Yield below Treasuries

The 3.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Spire yields 3.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 34.9% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.