Spire Healthcare (SPI) AI Stock Analysis

• Market Cap: £708.98M
• Dividend Yield: 1.31%
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 38.3
• Beta (1Y): 0.78
• Revenue Growth: 6.95%
• EPS Growth: -34.38%
• Country: UK
• Employees: 15,703
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.04
• Shares Outstanding: 402,759,600
• 10 Day Avg. Volume: 559,423
• 30 Day Avg. Volume: 1,661,785
• PEG Ratio: -5.28
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 7.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £287.50
• Price Target Upside: 63.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: 227.00p ▲(28.83% Upside)

Spire Healthcare's overall stock score is driven by strong financial performance, particularly in revenue growth and operational efficiency. However, high leverage and low net profitability are concerns. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Operational Efficiency

Improved gross margins reflect strong cost management and operational efficiency, which can lead to better profitability over time.

Cash Flow Generation

Robust cash flow supports capital expenditures and liquidity, providing financial flexibility for growth and investment opportunities.

Negative Factors

High Leverage

High leverage can increase financial risk and limit strategic options, potentially impacting long-term financial health and stability.

Low Net Profitability

Low net profitability suggests limited ability to convert revenue into profit, which could hinder reinvestment and shareholder returns.

Modest Return on Equity

Modest ROE indicates less efficient use of equity capital, potentially affecting investor confidence and long-term growth prospects.

Spire Healthcare Business Overview & Revenue Model

Company Description

Spire Healthcare Group plc, together with its subsidiaries, owns and operates private hospitals and clinics. It offers various treatments in the areas of allergy and infectious diseases, blood tests, bones and joints, bowel treatments, breast screening, cancer investigations and treatments, cosmetic surgery, cyst removal, and dental surgery, as well as ear, nose, and throat treatments. The company also provides eye surgery and treatments, family planning, gastroenterology, general medicine, general surgery, haematology, hand surgery, hip and knee treatment, and heart and kidney treatments. In addition, it offers treatments in the areas of men's health, neurosurgery and neurology, paediatrics, pain management, rehabilitation, sports, physiotherapy, podiatry, respiratory care, and rheumatology; and scans and investigations, skin treatments, spinal care, sports science, urology care, vascular surgery, weight loss, and women's health. Further, the company offers various tests and scans, which include cardiac CT, CT, MRI, ultrasound, and X-ray scans. It offers diagnostics, in-patient, daycase, and out-patient care services through 40 hospitals and eight clinics across England, Wales, and Scotland. Spire Healthcare Group plc was founded in 2007 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Spire Healthcare generates revenue primarily through patient care services provided in its hospitals and clinics. The company's revenue model includes income from private medical insurance, self-pay patients, and NHS contracts for services. Key revenue streams include elective surgeries, outpatient consultations, and diagnostic services. Significant partnerships with private health insurers and NHS frameworks enable Spire to secure a steady flow of patients and revenue. Additionally, the company benefits from a growing demand for private healthcare services, driven by factors such as increasing patient awareness, longer waiting times in the NHS, and a trend towards personalized medical care.

Spire Healthcare Financial Statement Overview

Summary

Spire Healthcare shows strong revenue growth and operational efficiency with improved gross and EBIT margins. However, net profitability remains modest, and the company has high leverage, indicating a need for cautious debt management. Cash flow generation is robust, supporting investments and liquidity.

Income Statement

Spire Healthcare has demonstrated consistent revenue growth over recent years, with a significant increase from £919.9M in 2020 to £1.51B in 2024. Gross profit margin improved to 45.23% in 2024, indicating strong cost management. However, the net profit margin remains modest at 1.68%, suggesting room for improvement in overall profitability. EBIT and EBITDA margins show stable operational efficiency, with the latter at 14.06% in 2024.

Balance Sheet

The company maintains a relatively high debt-to-equity ratio of 1.71, reflecting substantial leverage. However, return on equity (ROE) is modest at 3.39%, indicating efficient use of equity. The equity ratio at 31.94% suggests a balanced capital structure, though increasing equity could mitigate leverage risks.

Cash Flow

Spire Healthcare's cash flow from operations has shown a positive trend, reaching £235.7M in 2024, supporting its capital expenditures and free cash flow generation. Free cash flow growth is steady, though the operating to net income ratio of 9.28 indicates reliance on operating performance for cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.51B	1.36B	1.20B	1.11B	919.90M
Gross Profit	698.70M	683.60M	520.60M	440.50M	394.10M	361.80M
EBITDA	214.10M	250.40M	231.20M	193.30M	182.20M	-51.90M
Net Income	18.50M	25.40M	27.30M	8.60M	-9.70M	-233.90M
Balance Sheet
Total Assets	2.36B	2.34B	2.29B	2.16B	2.24B	2.10B
Cash, Cash Equivalents and Short-Term Investments	20.80M	43.70M	49.60M	74.20M	202.60M	106.30M
Total Debt	1.29B	1.28B	1.26B	1.19B	1.27B	1.17B
Total Liabilities	1.63B	1.60B	1.55B	1.43B	1.53B	1.40B
Stockholders Equity	733.90M	748.40M	739.90M	731.00M	709.60M	706.60M
Cash Flow
Free Cash Flow	132.90M	123.60M	115.50M	72.80M	101.30M	95.10M
Operating Cash Flow	241.90M	235.70M	199.90M	160.50M	170.60M	141.70M
Investing Cash Flow	-116.10M	-99.00M	-157.20M	-98.00M	-48.30M	-46.40M
Financing Cash Flow	-125.90M	-145.10M	-82.90M	-190.90M	-26.00M	-79.80M

Spire Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 176.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SPI, the sentiment is Negative. The current price of 176.2 is below the 20-day moving average (MA) of 218.56, below the 50-day MA of 230.41, and below the 200-day MA of 211.77, indicating a bearish trend. The MACD of -10.05 indicates Positive momentum. The RSI at 16.43 is Positive, neither overbought nor oversold. The STOCH value of 2.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SPI.

Spire Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRW	69 Neutral	£713.52M	46.76	6.00%	1.58%	5.74%	63.23%
AMS	69 Neutral	£488.82M	53.18	3.66%	1.19%	68.03%	-18.27%
SPI	55 Neutral	£708.98M	38.30	2.51%	1.31%	6.95%	-34.38%
PRTC	55 Neutral	£294.85M	8.54	15.04%	―	1231.50%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Spire Healthcare Corporate Events

Spire Healthcare Reports Revenue Growth Amidst Market Challenges

Spire Healthcare reports a 3.6% revenue growth from July to October 2025, despite challenges from inflation and increased National Minimum Wage. The company is on track with its transformation program, aiming for £30m in savings, and has successfully launched Patient Support Centres to improve private patient trends. However, NHS commissioning activity slowdown due to budget restrictions poses a challenge. Spire expects FY25 EBITDA to be at the lower end of its guidance range and anticipates continued improvement in self-pay and PMI trends for FY26. The company has extended its banking facilities and is evaluating strategic options to drive shareholder value, including potential sales or increased focus on private payors.

Spire Healthcare Explores Strategic Options Amid Market Speculation

Spire Healthcare Group PLC has responded to recent media speculation by confirming that it is exploring various strategic options, which may include a potential sale of the company. The board is actively working with Rothschild & Co to evaluate actions that could enhance long-term shareholder value, although no firm decisions or offers have been made at this stage. This announcement places Spire in an ‘offer period’ as per the City Code on Takeovers and Mergers, drawing attention to the disclosure requirements for shareholders.